Architectural detail of modern sustainable academy building on Groningen Campus, Netherlands in Instagram toning

Technical Line - Expanded use of the proportional amortization method for equity investments in tax credit programs


Our Technical Line discusses the FASB’s new guidance allowing entities to apply the proportional amortization method to all tax equity investments that meet the conditions in ASC 323-740, rather than just investments in qualified affordable housing projects that generate low-income housing tax credits (LIHTC). The guidance also clarifies the conditions to use the proportional amortization method and the application of the method. It also eliminates certain guidance for LIHTC investments that aren’t accounted for using the proportional amortization method.

Download PDF