### Question
What does 10-percent year mean?


### Answer
**10-percent year** has the following meaning in *26 U.S.C. § 460*:

> the 1st taxable year as of the close of which at least 10 percent of the estimated total contract costs have been incurred

#### Citation:
  - *26 U.S.C. § 460*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

