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131 STAT. 2104 PUBLIC LAW 115–97—DEC. 22, 2017 the books and records of the taxpayer prepared in accordance with the taxpayer’s accounting procedures. ‘‘(2) APPLICABLE FINANCIAL STATEMENT.—For purposes of this subsection, the term ‘applicable financial statement’ has the meaning given the term in section 451(b)(3). ‘‘(3) APPLICATION OF GROSS RECEIPTS TEST TO INDIVIDUALS, ETC.—In the case of any taxpayer which is not a corporation or a partnership, the gross receipts test of section 448(c) shall be applied in the same manner as if each trade or business of such taxpayer were a corporation or partnership. ‘‘(4) COORDINATION WITH SECTION 481.—Any change in method of accounting made pursuant to this subsection shall be treated for purposes of section 481 as initiated by the tax- payer and made with the consent of the Secretary.’’. (d) EXEMPTION FROM PERCENTAGE COMPLETION FOR LONG-TERM CONTRACTS.— (1) IN GENERAL.—Section 460(e)(1)(B) is amended— (A) by inserting ‘‘(other than a tax shelter prohibited from using the cash receipts and disbursements method of accounting under section 448(a)(3))’’ after ‘‘taxpayer’’ in the matter preceding clause (i), and (B) by amending clause (ii) to read as follows: ‘‘(ii) who meets the gross receipts test of section 448(c) for the taxable year in which such contract is entered into.’’. (2) CONFORMING AMENDMENTS.—Section 460(e) is amended by striking paragraphs (2) and (3), by redesignating paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), respectively, and by inserting after paragraph (1) the following new para- graph: ‘‘(2) RULES RELATED TO GROSS RECEIPTS TEST.— ‘‘(A) APPLICATION OF GROSS RECEIPTS TEST TO INDIVID- UALS, ETC.— For purposes of paragraph (1)(B)(ii), in the case of any taxpayer which is not a corporation or a part- nership, the gross receipts test of section 448(c) shall be applied in the same manner as if each trade or business of such taxpayer were a corporation or partnership. ‘‘(B) COORDINATION WITH SECTION 481.—Any change in method of accounting made pursuant to paragraph (1)(B)(ii) shall be treated as initiated by the taxpayer and made with the consent of the Secretary. Such change shall be effected on a cut-off basis for all similarly classified con- tracts entered into on or after the year of change.’’. (e) EFFECTIVE DATE.— (1) IN GENERAL.—Except as otherwise provided in this sub- section, the amendments made by this section shall apply to taxable years beginning after December 31, 2017. (2) PRESERVATION OF SUSPENSE ACCOUNT RULES WITH RESPECT TO ANY EXISTING SUSPENSE ACCOUNTS.—So much of the amendments made by subsection (a)(5)(C) as relate to sec- tion 447(i) of the Internal Revenue Code of 1986 shall not apply with respect to any suspense account established under such section before the date of the enactment of this Act. (3) EXEMPTION FROM PERCENTAGE COMPLETION FOR LONG- TERM CONTRACTS.—The amendments made by subsection (d) shall apply to contracts entered into after December 31, 2017, in taxable years ending after such date. 26 USC 263A note. 26 USC 460. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00052 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS