shall apply to taxable years beginning after December 31, 2017. 204. Increase in gross receipts test for construction contract exception to percentage of completion method (a) Increase (1) In general Clause (ii) of section 460(e)(1)(B) is amended 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 (A) Paragraph (2) of section 460(e) is amended to read as follows: (2) Additional rules for determining gross receipts For purposes of paragraph (1)(B)(ii), the Secretary shall prescribe regulations which provide attribution rules similar to section 448(c) and which take into account gross receipts of taxpayers who engage in construction contracts through partnerships, joint ventures, and corporations and which would otherwise not be taken into account under such section. . (B) Section 460(e) is amended by striking paragraph (3) and by redesignating paragraphs (4) through (6) as paragraphs (3) through (5), respectively. (C) The last sentence of section 56(a)(3) is amended by striking section 460(e)(6) and inserting section 460(e)(5) . (b) Coordination with section 481 Section 460(e), as amended by subsection (a), is amended by adding at the end the following: (6) Coordination with section 481 If a taxpayer changes its method of accounting because subsections (a), (b), and (c) (1) and (2) do not apply by reason of the exception under paragraph (1)(B) or such subsections apply to the taxpayer because such exception no longer applies to the taxpayer— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as made with the consent of the Secretary, and (C) such change shall be permitted only on a cut-off basis and no adjustments under section 481(a) shall be made. . (c) Effective date The amendment made by this section shall apply to contracts entered into after December 31, 2017, in taxable years ending after such date. III Modifications of expensing and cost recovery