The main purpose of this legislation is to change how certain residential construction contracts are accounted for in the tax system. Specifically, it aims to provide an exception to the existing percentage of completion method of accounting, which is a way of reporting income based on the progress of a construction project. Key provisions of the legislation include redefining the terms used in the tax code. It changes the term "home construction contract" to "residential construction contract" and adjusts the time frame for certain contracts from two years to three years.