Accounting for equity investments in income tax credit programs

Julie Collins, Kevin Powers, Sean Prince, Stephanie Lehmann, Marianne Wade, Jason Lardiere, Steven King
3/8/2024

This practice aid addresses the accounting for equity investments in income tax credit structures. It summarizes the Financial Accounting Standards Board (FASB) guidance, including examples of the proportional amortization method (PAM) of accounting; the equity method of accounting; application of Topic 321, “Investments – Equity Securities”; and consolidation considerations.

Accounting for equity investments in income tax credit programs
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Julie Collins
Julie Collins
Partner, National Office
Kevin Powers - social
Kevin Powers
Partner, Washington National Tax
Sean Prince
Sean C. Prince
Partner, National Office