Primary source of business income - construction

If you are an individual, partnership, trust, or corporation involved in construction activities which provide your primary source of business income and you make payments to subcontractors for construction services, you must report the amounts paid or credited. See Examples of construction activities.

If more than 50% of a business' income-earning activities are construction, its primary source of business income is deemed to be construction.

In many cases there are businesses that have significant amounts of construction done for them or by them, but this activity is not their principal business and the business does not have to report under the CPRS. For example, a natural gas company may do large amounts of construction to install pipelines. Its principal business is gas transmission, not constructing pipelines. It would not be required to report under the CPRS; however, if it wants to do so, we will accept the information.

Date modified:

2015-12-17