residential construction contract
(5) Definitions relating to residential construction contracts For purposes of this subsection— (A) Home construction contract The term “home construction contract” means any construction contract if 80 percent or more of the estimated total contract costs (as of the close of the taxable year in which the contract was entered into) are reasonably expected to be attributable to activities referred to in paragraph (4) with respect to— (i) dwelling units (as defined in section 168(e)(2)(A)(ii) ) contained in buildings containing 4 or fewer dwelling units (as so defined), and (ii) improvements to real property directly related to such dwelling units and located on the site of such dwelling units. For purposes of clause (i), each townhouse or rowhouse shall be treated as a separate building. (B) Residential construction contract The term “residential construction contract” means any contract which would be described in subparagraph (A) if clause (i) of such subparagraph reads as follows: “(i) dwelling units (as defined in section 168(e)(2)(A)(ii) ), and”.