amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2017. (2) Application to qualified energy efficient heating and air-conditioning property The amendments made by subsection (b) shall apply to property acquired and placed in service after November 2, 2017. For purposes of the preceding sentence, property shall not be treated as acquired after the date on which a written binding contract is entered into for such acquisition. 3202. Small business accounting method reform and simplification (a) Modification of limitation on cash method of accounting (1) Increased limitation So much of section 448(c) as precedes paragraph (2) is amended to read as follows: (c) Gross receipts test For purposes of this section— (1) In general A corporation or partnership meets the gross receipts test of this subsection for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed $25,000,000. . (2) Application of exception on annual basis Section 448(b)(3) is amended to read as follows: (3) Entities which meet gross receipts test Paragraphs (1) and (2) of subsection (a) shall not apply to any corporation or partnership for any taxable year if such entity (or any predecessor) meets the gross receipts test of subsection (c) for such taxable year. . (3) Inflation adjustment Section 448(c) is amended by adding at the end the following new paragraph: (4) Adjustment for inflation In the case of any taxable year beginning after December 31, 2018, the dollar amount in paragraph (1) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(c)(2) for the calendar year in which the taxable year begins, by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $1,000,000, such amount shall be