A bill to modify the tax treatment of certain long-term contracts with the Department of Defense.

Requires the Secretary of the Treasury to modify income tax regulations relating to accounting for long-term contracts to provide that: (1) the amount includible in gross income with respect to any Defense Department long-term contract shall not be less than a certain amount; and (2) the completed contract method may not be used with respect to Defense Department long-term contracts.

Defines Defense Department long-term contract as: (1) any long-term contract to which the Defense Department is a party; or (2) a subcontract to such a contract. Excludes certain contracts from consideration as Defense Department long-term contracts.

Sets forth rules for the determination of a taxpayer's gross receipts.