{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/323/740/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"323-740","topic":"323","title":"Income Taxes—Proportional Amortization Method","area":"Assets","paragraphs":53,"summary":"ASC 323-740 provides standalone guidance on the proportional amortization method for equity investments in flow-through limited liability entities made primarily to receive income tax credits and other income tax benefits (e.g., LIHTC and other tax credit programs). If the conditions in 323-740-25-1 are met and the method is elected on a tax-credit-program-by-tax-credit-program basis (323-740-25-4), the investor amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits allocated to it, and reports that amortization within income tax expense (benefit) (323-740-35-2; 323-740-45-2).","concepts":["proportional amortization method","tax credit investments","flow-through limited liability entity","significant influence","income tax credits and other income tax benefits","policy election by tax credit program","delayed equity contributions","low-income housing tax credit"],"categories":["Income taxes","Subsequent measurement","Presentation","Disclosure"],"level":"advanced","topic_title":"Investments—Equity Method and Joint Ventures","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"323-740-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Current Tax Expense (or Benefit)AddedAccounting Standards Update No. 2014-0101/15/2014
Deferred Tax Expense (or Benefit)AmendedAccounting Standards Update No. 2015-0101/09/2015
Income TaxesSupersededAccounting Standards Update No. 2014-0101/15/2014
Income Tax Expense (or Benefit)AddedAccounting Standards Update No. 2014-0101/15/2014
InvestorSupersededAccounting Standards Update No. 2014-0101/15/2014
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0101/15/2014
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0101/15/2014
323-740-05-1AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-05-2SupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-05-2AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-05-3SupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-05-3AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-15-1AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-15-1AAddedAccounting Standards Update No. 2023-0203/29/2023
323-740-15-2SupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-15-3SupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-15-3AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-25-1 through 25-1C
AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-25-1AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-25-1A through 25-1C
AddedAccounting Standards Update No. 2014-0101/15/2014
323-740-25-2SupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-25-2AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-25-2ASupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-25-2AAddedAccounting Standards Update No. 2016-0101/05/2016
323-740-25-3 through 25-6
AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-25-3AmendedAccounting Standards Update No. 2016-0202/25/2016
323-740-25-4AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-25-5AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-25-6AmendedAccounting Standards Update No. 2016-0101/05/2016
323-740-30-1AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-30-1AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-30-2AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-30-2AmendedAccounting Standards Update No. 2016-0101/05/2016
323-740-35-1 through 35-6
AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-35-4 through 35-6
AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-35-4 through 35-6
AddedAccounting Standards Update No. 2014-0101/15/2014
323-740-45-1AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-45-1AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-45-2AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-45-3AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-45-3AmendedAccounting Standards Update No. 2016-0101/05/2016
323-740-50-1AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-50-1AddedAccounting Standards Update No. 2014-0101/15/2014
323-740-50-1AAmendedAccounting Standards Update No. 2025-1112/08/2025
323-740-50-1AAddedAccounting Standards Update No. 2023-0203/29/2023
323-740-50-2AmendedAccounting Standards Update No. 2025-1112/08/2025
323-740-50-2AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-50-2AddedAccounting Standards Update No. 2014-0101/15/2014
323-740-55-2AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-55-2 through 55-5
AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-55-4AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-55-5AmendedAccounting Standards Update No. 2023-0203/29/2023
323-740-55-6SupersededAccounting Standards Update No. 2014-0101/15/2014
323-740-55-7 through 55-9
SupersededAccounting Standards Update No. 2023-0203/29/2023
323-740-55-7AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-55-8AmendedAccounting Standards Update No. 2019-1212/18/2019
323-740-55-8AmendedAccounting Standards Update No. 2014-0101/15/2014
323-740-55-10SupersededAccounting Standards Update No. 2014-0101/15/2014
323-740-55-11 through 55-14
AddedAccounting Standards Update No. 2023-0203/29/2023
323-740-65-1AddedAccounting Standards Update No. 2014-0101/15/2014
323-740-65-2AddedAccounting Standards Update No. 2023-0203/29/2023
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\nCurrent Tax Expense (or Benefit) | Added | Accounting Standards Update No. 2014-01 | 01/15/2014 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c30c844b51d148e9667ba661e247088ea3159f06ad4628eeb42f95f51fd294f","downloaded_from":"2026-09-09T23:41:07.480Z","last_downloaded_at":"2026-09-09T23:41:07.480Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477278","source_sha256":"809060db9fa8d4a1688dae7ce57f91981d5211f2a552809e5425889541c80541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a485f23a254c5170fbe5b55fb4eaeb0769e85a12979e5e35c5b038ec01321e83","downloaded_from":"2026-09-09T23:41:07.480Z","last_downloaded_at":"2026-09-09T23:41:07.480Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477278","source_sha256":"809060db9fa8d4a1688dae7ce57f91981d5211f2a552809e5425889541c80541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43a37ef4ad4c3b9a7cc3cc8bbc4a9486d6221b62b957411a8a16ef9b959617f2","downloaded_from":"2026-09-09T23:41:07.480Z","last_downloaded_at":"2026-09-09T23:41:07.480Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477278","source_sha256":"809060db9fa8d4a1688dae7ce57f91981d5211f2a552809e5425889541c80541"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-05-1","para":"05-1","html":"
This Subtopic contains standalone guidance on the use of the proportional amortization method to investments made primarily for the purpose of receiving income tax credits and other income tax benefits. Income tax accounting guidance on other types of equity method investments and joint ventures is contained in Subtopics 740-10 and 740-30.
","snippet":"This Subtopic contains standalone guidance on the use of the proportional amortization method to investments made primarily for the purpose of receiving income tax credits and other income tax benefits. Income tax accoun…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b9777aa9c24f6b6b35b85b88b58ef99d6882d125b2e084ab7fb2ad6dc4d5145","downloaded_from":"2026-09-09T23:41:09.897Z","last_downloaded_at":"2026-09-09T23:41:09.897Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478118","source_sha256":"d48ab5628d8545fedfebdf007dea2a09e71a959feee78993bcccf6549c3b6844"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:acdc927b931490ef0438b51f23bae366e162ef1b2fb54f3a44d0d7d4a35543e9","downloaded_from":"2026-09-09T23:41:09.897Z","last_downloaded_at":"2026-09-09T23:41:09.897Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478118","source_sha256":"d48ab5628d8545fedfebdf007dea2a09e71a959feee78993bcccf6549c3b6844"}},{"block":null,"heading":null,"paragraphs":[{"citation":"323-740-05-2","para":"05-2","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50f5618f9be244113d0cdb4718a1620c028d30766d5e165a21284aeca6f8dbe0","downloaded_from":"2026-09-09T23:41:09.897Z","last_downloaded_at":"2026-09-09T23:41:09.897Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478118","source_sha256":"d48ab5628d8545fedfebdf007dea2a09e71a959feee78993bcccf6549c3b6844"}},{"citation":"323-740-05-3","para":"05-3","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:99e9ef8e3d972833779484c2f86ed47ecec3dcbec07f1259ce9d4d9f9c6e3e72","downloaded_from":"2026-09-09T23:41:09.897Z","last_downloaded_at":"2026-09-09T23:41:09.897Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478118","source_sha256":"d48ab5628d8545fedfebdf007dea2a09e71a959feee78993bcccf6549c3b6844"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a61b6ea48c8ab7090461f57bfc713a8fe324e7ca705963226a66ce27bcce4d0","downloaded_from":"2026-09-09T23:41:09.897Z","last_downloaded_at":"2026-09-09T23:41:09.897Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478118","source_sha256":"d48ab5628d8545fedfebdf007dea2a09e71a959feee78993bcccf6549c3b6844"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc82ffa7efa1bd770f04d50e8aef18af8e98b74bbdad3725c5b76c79bfb2cd97","downloaded_from":"2026-09-09T23:41:09.897Z","last_downloaded_at":"2026-09-09T23:41:09.897Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478118","source_sha256":"d48ab5628d8545fedfebdf007dea2a09e71a959feee78993bcccf6549c3b6844"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":"Overall Guidance","paragraphs":[{"citation":"323-740-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 323-10-15, with specific transaction qualifications and disclosure requirements noted in paragraph 323-740-15-1A.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 323-10-15, with specific transaction qualifications and disclosure requirements noted in paragraph 323-740-15-1A.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b0027aaf2ee9a5acdcb605c0804db9ac5f1ca5afb87f16a9d0685c2c4dd9f9e","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}},{"citation":"323-740-15-1A","para":"15-1A","html":"
The guidance in the Proportional Amortization Method Subtopic applies to equity investments that generate income tax credits and other income tax benefits from a tax credit program through limited liability entities that are flow-through entities for tax purposes, meet the criteria to be accounted for using the proportional amortization method in this Subtopic, and for which that method is elected on a tax-credit-program-by-tax-credit-program basis in accordance with paragraph 323-740-25-4. Additionally, the disclosure requirements in paragraphs
323-740-50-1 through 50-2
shall be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method, including investments within that elected program that do not meet the conditions to apply the proportional amortization method.
","snippet":"The guidance in the Proportional Amortization Method Subtopic applies to equity investments that generate income tax credits and other income tax benefits from a tax credit program through limited liability entities that…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9aa23319bee8f49c37652033fada540515de9aee2de3ece1ddfe566fb6e5d288","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b93b3376907618328168e49f3c34aaffe75749671f997d80b7888e6c78ecd5f3","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}},{"block":null,"heading":null,"paragraphs":[{"citation":"323-740-15-2","para":"15-2","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:492bed3ceb88183c4b18ef26e0fc1af9a5f4a1dde5a02edeedcb48052ae61d11","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}},{"citation":"323-740-15-3","para":"15-3","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b59c83985fda3914e27926b5724e702904669810dbebaa106420a06bd1c95cf2","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae3ea4c38d2d7c01fba37871db4c21b372679cf9d670657b04d50622e60a2145","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8d3832d27078a17d6e787f4475175d89460c1af64c91c1048dc189a4ab31a80","downloaded_from":"2026-09-09T23:41:11.801Z","last_downloaded_at":"2026-09-09T23:41:11.801Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479136","source_sha256":"63dfe3db0c6bd6d0bb575374e69cca6e1928b1382e79a2cd26b4a92e3a8f0b2e"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-25-1","para":"25-1","html":"
A reporting entity that invests in projects that generate income tax credits and other income tax benefits from a tax credit program through limited liability entities (that is, the investor) may elect to account for those investments using the proportional amortization method (described in paragraphs 323-740-35-2 and 323-740-45-2) if elected in accordance with paragraph 323-740-25-4, provided all of the following conditions are met:
  1. a
    It is probable that the income tax credits allocable to the investor will be available.
  2. aa
    The investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project.
  3. aaa
    Substantially all of the projected benefits are from income tax credits and other income tax benefits (for example, tax benefits generated from the operating losses of the investment). Projected benefits include, but are not limited to, income tax credits, other income tax benefits, and other non-income-tax-related benefits, including refundable tax credits (that is, those tax credits not dependent upon an investor’s income tax liability). Tax credits accounted for outside of the scope of Topic 740 (for example, refundable tax credits) shall be included in total projected benefits, but not in income tax credits and other income tax benefits when evaluating this condition. This condition shall be determined on a discounted basis using a discount rate that is consistent with the cash flow assumptions utilized by the investor for the purpose of making a decision to invest in the project.
  4. b
    The investor's projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive.
  5. c
    The investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the investor's liability is limited to its capital investment.
","snippet":"A reporting entity that invests in projects that generate income tax credits and other income tax benefits from a tax credit program through limited liability entities (that is, the investor) may elect to account for tho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4244040f4f2e1636842e609f1b2df6c3bb1a540265a5dd2817026d3b79be14f2","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-1A","para":"25-1A","html":"
In determining whether an investor has the ability to exercise significant influence over the operating and financial policies of the underlying project, a reporting entity shall consider the indicators of significant influence in paragraphs
323-10-15-6 through 15-7
. In considering the operating and financial policies of the underlying project, the investor shall consider the operations, financial decisions, and related objectives of the project as a whole.
","snippet":"In determining whether an investor has the ability to exercise significant influence over the operating and financial policies of the underlying project, a reporting entity shall consider the indicators of significant in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b694bd1dfb1c15d561f4f261f0bfc88b6da3192b003d409a8216654f73475cb8","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-1B","para":"25-1B","html":"
Other transactions between the investor and the limited liability entity (for example, bank loans) shall not be considered when determining whether the conditions in paragraph 323-740-25-1 are met, provided that all three of the following conditions are met:
  1. a
    The reporting entity is in the business of entering into those other transactions (for example, a financial institution that regularly extends loans to other projects).
  2. b
    The terms of those other transactions are consistent with the terms of arm's-length transactions.
  3. c
    The reporting entity does not acquire the ability to exercise significant influence over the operating and financial policies of the underlying project as a result of those other transactions.
","snippet":"Other transactions between the investor and the limited liability entity (for example, bank loans) shall not be considered when determining whether the conditions in paragraph 323-740-25-1 are met, provided that all thre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9edf0f7941753ff427ceca277509c7d726c2b0f042a87c919d9b20dcd5a8dd82","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-1C","para":"25-1C","html":"
At the time of the initial investment, a reporting entity shall evaluate whether the conditions in paragraphs 323-740-25-1 through 25-1B have been met to elect to apply the proportional amortization method on the basis of facts and circumstances that exist at that time. A reporting entity shall subsequently reevaluate the conditions upon the occurrence of either of the following:
  1. a
    A change in the nature of the investment (for example, if the investment is no longer in a flow-through entity for tax purposes)
  2. b
    A change in the relationship with the underlying project that could result in the reporting entity no longer meeting the conditions in paragraphs 323-740-25-1 through 25-1B.
","snippet":"At the time of the initial investment, a reporting entity shall evaluate whether the conditions in paragraphs 323-740-25-1 through 25-1B have been met to elect to apply the proportional amortization method on the basis o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e99eb47798b55adc776a2a6d93d33bdfa02eecb5825ef5cd615522eb1a5034f5","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-2","para":"25-2","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7515ba7c5b40e411bca84e83e3611d1a60adb49bcef775e0d0e990589d6c2ff3","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-2A","para":"25-2A","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c59b0e04414156bae0ed20c6b7168ba71322ef21bfe57b3dc87d97b229b6e336","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-3","para":"25-3","html":"
A liability shall be recognized for delayed equity contributions that are unconditional and legally binding. A liability also shall be recognized for equity contributions that are contingent upon a future event when that contingent event becomes probable. Topic 450 and paragraph 842-50-55-2 provide additional guidance on the accounting for delayed equity contributions.
","snippet":"A liability shall be recognized for delayed equity contributions that are unconditional and legally binding. A liability also shall be recognized for equity contributions that are contingent upon a future event when that…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6de1ebe68efacf3473465447f8ed8c0b142298fb2f83a242581aae0319f4ccfa","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-4","para":"25-4","html":"
The decision to apply the proportional amortization method is an accounting policy decision to be elected on a tax-credit-program-by-tax-credit-program basis that shall be applied consistently to all investments within an elected tax credit program that meet the conditions in paragraph 323-740-25-1 rather than a decision to be applied to individual investments that meet the conditions in paragraph 323-740-25-1.
","snippet":"The decision to apply the proportional amortization method is an accounting policy decision to be elected on a tax-credit-program-by-tax-credit-program basis that shall be applied consistently to all investments within a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fb4cb6fc966091becf34982f448bd5a9784899a0d6c922aa6e1fb2bc0cb3e83","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-5","para":"25-5","html":"
An entity shall recognize income tax credits in the period that they are allocated to the investor for tax purposes. Unless all income tax credits are allocated to the investor at the date of initial investment, immediate recognition of the entire benefit of the income tax credits to be received during the term of an investment that generates income tax credits and other income tax benefits from a tax credit program is not permitted (that is, income tax credits shall not be recognized in the financial statements before the year in which the credit arises).
","snippet":"An entity shall recognize income tax credits in the period that they are allocated to the investor for tax purposes. Unless all income tax credits are allocated to the investor at the date of initial investment, immediat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbe161aef1ba6e61ce44bed985bcc19b109b791cab84ec10d21c691468cfffc4","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"citation":"323-740-25-6","para":"25-6","html":"
Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax credit program. Example 2 (see paragraph 323-740-55-11) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits, other income tax benefits, and non-income-tax-related benefits from a tax credit program.
","snippet":"Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax cr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eecec0bfe2531dd4b50b2310a9d8251e4ec5691a8e6c2bfc5620fe6a85e9632e","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3b4c8591ece49e4f00abbfb63bea1722f30122bcb96737ba6aa8c671783b3b5","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1df001e724816b66d881d5c56e6b91d20fa2c0350e7ea6c61cfcb06376472cf","downloaded_from":"2026-09-09T23:41:15.826Z","last_downloaded_at":"2026-09-09T23:41:15.826Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478758","source_sha256":"ac89d89093d6ca096b3550f7fbf6e4f20f30a02d0258a20da6f14157a296f332"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-30-1","para":"30-1","html":"
Paragraph 323-740-25-5 prohibits immediate recognition of income tax credits, at the time of initial investment, for the entire benefit of tax credits to be received over a period of time during the term of an investment that generates income tax credits and other income tax benefits from a tax credit program (that is, income tax credits shall not be recognized in the financial statements before the year in which the credit arises).
","snippet":"Paragraph 323-740-25-5 prohibits immediate recognition of income tax credits, at the time of initial investment, for the entire benefit of tax credits to be received over a period of time during the term of an investment…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3724047e8fb1d7eb32cbb727d8dc406937e86921c6b8956040e0db9a40e262e","downloaded_from":"2026-09-09T23:41:19.906Z","last_downloaded_at":"2026-09-09T23:41:19.906Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477198","source_sha256":"a472809abe945678c8e36da880ee48d28f364eaeab9383523658edda00600e7f"}},{"citation":"323-740-30-2","para":"30-2","html":"
Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax credit program. Example 2 (see paragraph 323-740-55-11) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits, other income tax benefits, and non-income-tax-related benefits from a tax credit program.
","snippet":"Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax cr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa2bb52283e790eaf73504f18e4d7666475554b3a2044597b700610ffdda1733","downloaded_from":"2026-09-09T23:41:19.906Z","last_downloaded_at":"2026-09-09T23:41:19.906Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477198","source_sha256":"a472809abe945678c8e36da880ee48d28f364eaeab9383523658edda00600e7f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67fdbb3c8f985b4adba8b104bf98db910cf744e81d67d119850596462f0abfbc","downloaded_from":"2026-09-09T23:41:19.906Z","last_downloaded_at":"2026-09-09T23:41:19.906Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477198","source_sha256":"a472809abe945678c8e36da880ee48d28f364eaeab9383523658edda00600e7f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af46f9daad6247974531d6c6d3a673015edbda85d7d2f921c146a249070de5a1","downloaded_from":"2026-09-09T23:41:19.906Z","last_downloaded_at":"2026-09-09T23:41:19.906Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477198","source_sha256":"a472809abe945678c8e36da880ee48d28f364eaeab9383523658edda00600e7f"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-35-1","para":"35-1","html":"
This guidance addresses the methodology for measuring an investment that is accounted for using the proportional amortization method.
","snippet":"This guidance addresses the methodology for measuring an investment that is accounted for using the proportional amortization method.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b5e1e90b2570172c60ef115aafb6f045d30dea378d4d9c3aedb931d8c3638a7","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}},{"citation":"323-740-35-2","para":"35-2","html":"
Under the proportional amortization method, the investor amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits allocated to the investor. The amortization amount shall be calculated as follows:
  1. a
    The initial investment balance less any expected residual value of the investment, multiplied by
  2. b
    The percentage of actual income tax credits and other income tax benefits allocated to the investor in the current period divided by the total estimated income tax credits and other income tax benefits expected to be received by the investor over the life of the investment.
","snippet":"Under the proportional amortization method, the investor amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits allocated to the investor. The amortization amou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a397150800bbd0648b628047375d5927172ef214b9703656d78d1284c23434cb","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}},{"citation":"323-740-35-3","para":"35-3","html":"
Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited liability investment that generates income tax credits and other income tax benefits from a tax credit program. Example 2 (see paragraph 323-740-55-11) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits, other income tax benefits, and non-income-tax-related benefits from a tax credit program.
","snippet":"Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited liability investment that generates income tax credits and other income tax benefits from a tax cred…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f45021038f349d06ba37a54ccebf50b0e98c4e5a0e8c1e8d94b5da7ff5ffd5d7","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}},{"citation":"323-740-35-4","para":"35-4","html":"
As a practical expedient, an investor is permitted to amortize the initial cost of the investment in proportion to only the income tax credits allocated to the investor if the investor reasonably expects that doing so would produce a measurement that is substantially similar to the measurement that would result from applying the requirement in paragraph 323-740-35-2.
","snippet":"As a practical expedient, an investor is permitted to amortize the initial cost of the investment in proportion to only the income tax credits allocated to the investor if the investor reasonably expects that doing so wo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5aeb97b693ab4232d82b9766f06a85af7046c9338e562f2cddb8424031d47c5b","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}},{"citation":"323-740-35-5","para":"35-5","html":"
Any expected residual value of the investment shall be excluded from the proportional amortization calculation. Non-income-tax-related benefits received from operations of the limited liability entity shall be included in pre-tax earnings when realized or realizable. Gains or losses on the sale of the investment, if any, shall be included in pre-tax earnings at the time of sale.
","snippet":"Any expected residual value of the investment shall be excluded from the proportional amortization calculation. Non-income-tax-related benefits received from operations of the limited liability entity shall be included i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10e9e1ffa180e2418ef53c48317a510c3332d048a0590e738ffec8c5ab9af7ea","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}},{"citation":"323-740-35-6","para":"35-6","html":"
An investment shall be tested for impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss shall be measured as the amount by which the carrying amount of an investment exceeds its fair value. A previously recognized impairment loss shall not be reversed.
","snippet":"An investment shall be tested for impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss shall be m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65c3583b2f3c41fd1a88b201e15e1c2b5da616f2bfb03e6d5a9fe8519c7965f0","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2eaeb1c1bc80019dec39c839d6eab4d3f21085dbd2109bb801fba147acbe6637","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:400f40279df216cfc5d1b680b8d6270713ef79f5eb6a244c91d661b0a1c642ec","downloaded_from":"2026-09-09T23:41:22.838Z","last_downloaded_at":"2026-09-09T23:41:22.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477283","source_sha256":"d9cc81a7641ff5c2af5a18ac3cd9484fbe078285e9079e1978b13a0b9c60fc75"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-45-1","para":"45-1","html":"
This guidance addresses the income statement presentation of an investment that is accounted for using the proportional amortization method.
","snippet":"This guidance addresses the income statement presentation of an investment that is accounted for using the proportional amortization method.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0be57cbe5066f3111d021107f5db5f9007948d503457477e831e601422a3d265","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}},{"citation":"323-740-45-2","para":"45-2","html":"
Under the proportional amortization method, the amortization of the investment in the limited liability entity is recognized in the income statement as a component of income tax expense (or benefit). The current tax expense (or benefit) shall be accounted for pursuant to the general requirements of Topic 740.
","snippet":"Under the proportional amortization method, the amortization of the investment in the limited liability entity is recognized in the income statement as a component of income tax expense (or benefit). The current tax expe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c0fc2f1466485eee61662d59dd9203eca9eee460d2301f0ef882ca147da1868","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}},{"citation":"323-740-45-3","para":"45-3","html":"
Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax credit program. Example 2 (see paragraph 323-740-55-11) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits, other income tax benefits, and non-income-tax-related benefits from a tax credit program.
","snippet":"Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax cr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e28b064e32f61f89a3fcd0bd153fd690bea7fea5cff6617c9e2c691ca83f76f4","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c596872b059a90df8b1775aece8c07051c6e85099c6589649d8a6d558ed357e6","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa3c56486247aa0db5c48ba402f3ed13c4d4c1e74a112bf5c7852bc0714851a9","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-50-1","para":"50-1","html":"
A reporting entity shall disclose information in annual and interim periods that enables users of its financial statements to understand the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program for which it has elected on a tax-credit-program-by-tax-credit-program basis to apply the proportional amortization method, including investments within that elected tax credit program that do not meet the conditions in paragraph 323-740-25-1:
  1. a
    The nature of its investments
  2. b
    The effect of the recognition and measurement of its investments and the related income tax credits and other income tax benefits on its financial position and results of operations.
","snippet":"A reporting entity shall disclose information in annual and interim periods that enables users of its financial statements to understand the following information about its investments that generate income tax credits an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e608239cc804842bd8efe85124eabe4e1674b359e7423611a6d6de20d61f37e","downloaded_from":"2026-09-09T23:41:29.117Z","last_downloaded_at":"2026-09-09T23:41:29.117Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478156","source_sha256":"b3a4210c72ba3f3d3af41e234abab17b2e085b492ccf3c41da19bfdbab0a3732"}},{"citation":"323-740-50-1A","para":"50-1A","html":"
To meet the objectives in paragraph 323-740-50-1, a reporting entity shall disclose the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program for which it has elected on a tax-credit-program-by-tax-credit-program basis to apply the proportional amortization method, including investments within that elected tax credit program that do not meet the conditions in paragraph 323-740-25-1:
  1. a
    The amount of income tax credits and other income tax benefits recognized during the period, including the line item in the statement of operations and statement of cash flows in which it has been recognized
  2. b
    The amount of investments and the line item in which the investments are recognized in the statement of financial position
  3. c
    For investments accounted for using the proportional amortization method, the amount of investment amortization recognized as a component of income tax expense (benefit)
  4. d
    For investments accounted for using the proportional amortization method, the amount of non-income-tax-related activity and other returns received that is recognized outside of income tax expense (benefit) and the line item in the statement of operations and statement of cash flows in which it has been recognized
  5. e
    For investments accounted for using the proportional amortization method, significant modifications or events that resulted in a change in the nature of the investment or a change in the relationship with the underlying project.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1To meet the objectives in paragraph 323-740-50-1, a reporting entity shall disclose the following information in annual and interim reporting periods about its investments that generate income tax credits and other income tax benefits from a tax credit program for which it has elected on a tax-credit-program-by-tax-credit-program basis to apply the proportional amortization method, including investments within that elected tax credit program that do not meet the conditions in paragraph 323-740-25-1:
  1. a
    The amount of income tax credits and other income tax benefits recognized during the period, including the line item in the statement of operations and statement of cash flows in which it has been recognized
  2. b
    The amount of investments and the line item in which the investments are recognized in the statement of financial position
  3. c
    For investments accounted for using the proportional amortization method, the amount of investment amortization recognized as a component of income tax expense (benefit)
  4. d
    For investments accounted for using the proportional amortization method, the amount of non-income-tax-related activity and other returns received that is recognized outside of income tax expense (benefit) and the line item in the statement of operations and statement of cash flows in which it has been recognized
  5. e
    For investments accounted for using the proportional amortization method, significant modifications or events that resulted in a change in the nature of the investment or a change in the relationship with the underlying project.
","snippet":"To meet the objectives in paragraph 323-740-50-1, a reporting entity shall disclose the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbed2265ebb09232d26926542a628f673b7c506806f093bf4fba926c62ee188c","downloaded_from":"2026-09-09T23:41:29.117Z","last_downloaded_at":"2026-09-09T23:41:29.117Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478156","source_sha256":"b3a4210c72ba3f3d3af41e234abab17b2e085b492ccf3c41da19bfdbab0a3732"}},{"citation":"323-740-50-2","para":"50-2","html":"
To meet the objectives in paragraph 323-740-50-1, a reporting entity may consider disclosing the following about its investments that generate income tax credits and other income tax benefits from a tax credit program for which it has elected on a tax-credit-program-by-tax-credit-program basis to apply the proportional amortization method, including investments within that elected tax credit program that do not meet the conditions in paragraph 323-740-25-1:
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2023-02.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2023-02.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2023-02.
  4. d
    For investments accounted for using the equity method, the amount of investment income or loss included in pretax income
  5. e
    Any commitments or contingent commitments (for example, guarantees or commitments to provide additional capital contributions), including the amount of delayed equity contributions and the year or years in which contingent commitments are expected to be paid
  6. f
    The amount and nature of impairment losses during the year resulting from the forfeiture or ineligibility of income tax credits or other circumstances. For example, in a qualified affordable housing project investment, those impairment losses may be based on actual property-level foreclosures, loss of qualification due to occupancy levels, compliance issues with tax code provisions, or other issues.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1To meet the objectives in paragraph 323-740-50-1, a reporting entity may consider disclosing the following in annual and interim reporting periods about its investments that generate income tax credits and other income tax benefits from a tax credit program for which it has elected on a tax-credit-program-by-tax-credit-program basis to apply the proportional amortization method, including investments within that elected tax credit program that do not meet the conditions in paragraph 323-740-25-1:
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2023-02.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2023-02.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2023-02.
  4. d
    For investments accounted for using the equity method, the amount of investment income or loss included in pretax income
  5. e
    Any commitments or contingent commitments (for example, guarantees or commitments to provide additional capital contributions), including the amount of delayed equity contributions and the year or years in which contingent commitments are expected to be paid
  6. f
    The amount and nature of impairment losses during the year resulting from the forfeiture or ineligibility of income tax credits or other circumstances. For example, in a qualified affordable housing project investment, those impairment losses may be based on actual property-level foreclosures, loss of qualification due to occupancy levels, compliance issues with tax code provisions, or other issues.
","snippet":"To meet the objectives in paragraph 323-740-50-1, a reporting entity may consider disclosing the following about its investments that generate income tax credits and other income tax benefits from a tax credit program fo…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1548199f670cc7a22f4a1c1039e8ff4ebe7af222b6ab164294309a230416694","downloaded_from":"2026-09-09T23:41:29.117Z","last_downloaded_at":"2026-09-09T23:41:29.117Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478156","source_sha256":"b3a4210c72ba3f3d3af41e234abab17b2e085b492ccf3c41da19bfdbab0a3732"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8c39ba243bd253f146343e208d203722cbf63939635e1c775d674be92330a79","downloaded_from":"2026-09-09T23:41:29.117Z","last_downloaded_at":"2026-09-09T23:41:29.117Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478156","source_sha256":"b3a4210c72ba3f3d3af41e234abab17b2e085b492ccf3c41da19bfdbab0a3732"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cdc2d67a11e6f04f6a549b4b7aa26d071b7cbce7783bc8fe33771807c960bb84","downloaded_from":"2026-09-09T23:41:29.117Z","last_downloaded_at":"2026-09-09T23:41:29.117Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478156","source_sha256":"b3a4210c72ba3f3d3af41e234abab17b2e085b492ccf3c41da19bfdbab0a3732"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-55-1","para":"55-1","html":"
This Section is an integral part of the requirements of this Subtopic.
","snippet":"This Section is an integral part of the requirements of this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d8d1e06b5e2b840e0d81fb780b5ee73e627bfb2019b37d8637b4e03f6c50b83","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66c748801cf95575b40e3181f0332ddd4bca529dc45f47c6fa5c34fbbb3dc6dc","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"block":"Proportional Amortization Method","heading":"Illustrations","paragraphs":[{"citation":"323-740-55-2","para":"55-2","html":"
This Example illustrates the application of the proportional amortization method of accounting for a limited liability investment in a low-income-housing tax credit structure, which is a type of investment that may be eligible to be accounted for using the proportional amortization method.
","snippet":"This Example illustrates the application of the proportional amortization method of accounting for a limited liability investment in a low-income-housing tax credit structure, which is a type of investment that may be el…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15d873bf5df9e19ceef2988a21b43675581871fea769ed7a47dbba46524d0a95","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-3","para":"55-3","html":"
The following are the terms for this Example.
","snippet":"The following are the terms for this Example.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e57f5e029fe1912774adcb4ef393b8620869046ca1736e6b484c60e532fcb3bc","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-4","para":"55-4","html":"
This Example has the following assumptions:
  1. a
    All cash flows (except initial investment) occur at the end of each year.
  2. b
    Depreciation expense is computed, for book and tax purposes, using the straight-line method with a 27.5 year life (the same method is used for simplicity).
  3. c
    The investor made a $100,000 investment for a 5 percent limited partnership interest in the project at the beginning of the first year of eligibility for the tax credit.
  4. d
    The partnership finances the project cost of $4,000,000 with 50 percent equity and 50 percent debt.
  5. e
    The annual tax credit allocation (equal to 4 percent of the project's original cost) will be received for a period of 10 years.
  6. f
    The investor's tax rate is 40 percent.
  7. g
    The project will operate with break-even pretax cash flows including debt service during the first 15 years of operations.
  8. h
    The project's taxable loss will be equal to depreciation expense. The cumulative book loss (and thus the cumulative depreciation expense) recognized by the investor is limited to the $100,000 investment.
  9. i
    Subparagraph superseded by Accounting Standards Update No. 2014-01.
  10. j
    It is assumed that all requirements are met to retain allocable tax credits so there will be no recapture of tax credits.
  11. k
    The investor expects that the estimated residual value of the investment will be zero.
  12. l
    All of the conditions described in paragraph 323-740-25-1 are met to apply the proportional amortization method, and the entity has elected to use the proportional amortization method to account for its tax equity investments in this tax credit program in accordance with paragraph 323-740-25-4.
","snippet":"This Example has the following assumptions:\n(a) All cash flows (except initial investment) occur at the end of each year.\n(b) Depreciation expense is computed, for book and tax purposes, using the straight-line method wi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8600a98a8fae1bde24be2e462677d1646ffd9e958fe23d25a690b253f7790379","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-5","para":"55-5","html":"
An analysis of the proportional amortization method follows.
","snippet":"An analysis of the proportional amortization method follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f7ac188e9e81033d0629894255b0178ad4838d8f0b78466ef64cacaa8f346c76","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-6","para":"55-6","html":"
Paragraph superseded by Accounting Standards Update No. 2014-01.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-01.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73ea046c536964b5af777055857aace06a43e7a6f8bbadd65edd03415c116fe5","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-7","para":"55-7","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ffe81d2cb6cf12d6e89987afc123b5d3293fddd550d08c85a385b06122ab22b","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-8","para":"55-8","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47e84978dc50579d3903a948c39abd7ec45315b41c5961f9c1dc2b4a1751c156","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-9","para":"55-9","html":"
Paragraph superseded by Accounting Standards Update No. 2023-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2023-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75b00f02cf6f0a516a2bdace51029acb0778b70750caa114775db8e8e6710218","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-10","para":"55-10","html":"
Paragraph superseded by Accounting Standards Update No. 2014-01.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-01.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f14bf91161775c37349410c8e510311d72ae790b53c7d00bf8df0fabc70ea9c9","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-11","para":"55-11","html":"
This Example illustrates the application of the proportional amortization method for an investment that generates non-income-tax-related benefits in addition to income tax credits and other income tax benefits from a tax credit program.
","snippet":"This Example illustrates the application of the proportional amortization method for an investment that generates non-income-tax-related benefits in addition to income tax credits and other income tax benefits from a tax…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1531fe29f9ec78e2e05931f954de086e8878c9ce4c6335ff0eb80d2a4125f9ba","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-12","para":"55-12","html":"
The following are the terms for this Example:
","snippet":"The following are the terms for this Example:","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b5f5dd16606aecc7ec311afc03636d2bd2ec04ac81d76595e0afc9e162f6d02","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-13","para":"55-13","html":"
This Example has the following assumptions:
  1. a
    All cash flows (except the initial investment) occur at the end of each year.
  2. b
    Depreciation expense is computed, for book and tax purposes, using the straight-line method with a 10-year life (the same method is used for simplicity).
  3. c
    The investor contributed $102,000, or 5 percent of the equity capital, for an interest in the limited partnership at the beginning of the first year of eligibility for the income tax credit.
  4. d
    The partnership will receive income tax credits from an income tax credit program. The income tax credits will be received over a four-year period.
  5. e
    There is no reduction of tax basis as a result of the income tax credits.
  6. f
    The investor will receive cash proceeds based on a fixed percentage of the project’s cash generated during the life of the project.
  7. g
    The investor’s tax rate is 40 percent.
  8. h
    The income tax credits are not subject to recapture.
  9. i
    The investor expects that the estimated residual investment will be nominal (zero is assumed for simplicity).
  10. j
    All of the conditions described in paragraph 323-740-25-1 are met to apply the proportional amortization method, and the entity has elected to use the proportional amortization method to account for its tax equity investments in this tax credit program in accordance with paragraph 323-740-25-4.
  11. k
    After 10 years, the investor has a right to require that the project sponsor purchase the investor’s equity interest for a nominal amount (zero is assumed for simplicity). It is assumed that the option will be exercised.
","snippet":"This Example has the following assumptions:\n(a) All cash flows (except the initial investment) occur at the end of each year.\n(b) Depreciation expense is computed, for book and tax purposes, using the straight-line metho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d89a63bb100ed877c6b5c3d64fe21ea213824d39201cde95998a2766200db8f6","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"citation":"323-740-55-14","para":"55-14","html":"
An analysis of the proportional amortization method follows.
","snippet":"An analysis of the proportional amortization method follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18cc1160e9e415b3982db8a2ea6e594d25ed7a324946d6c18eab41c514ecf07c","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d987d887b5e8efbf409e3fc3f7bead5962ee7b4ed2d8b6ced36347e55e3b1eed","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e74190859775c112805ea012b17998913d5f0cc94323d42f262278a9278c5869","downloaded_from":"2026-09-09T23:41:32.886Z","last_downloaded_at":"2026-09-09T23:41:32.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478876","source_sha256":"7341c54d38f6a7ddd6b42a97664ac836a6616cbde37a7bdbcbd483ed6bf13652"}},{"number":"65","label":"65 Transition and Open Effective Date Information","anchor":"65-transition-and-open-effective-date-information","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"323-740-65-1","para":"65-1","html":"
Paragraph superseded on 10/26/2017 after the end of the transition period stated in Accounting Standards Update No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.
","snippet":"Paragraph superseded on 10/26/2017 after the end of the transition period stated in Accounting Standards Update No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualifi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6ccb07b371a3b83418e824435911fcbea2cf2f23347337c452f297272464529","downloaded_from":"2026-09-09T23:41:35.438Z","last_downloaded_at":"2026-09-09T23:41:35.438Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478666","source_sha256":"f08f277c646d67da479bc87a6786276b8cdfa75d476bbe32e4835075133a3ced"}},{"citation":"323-740-65-2","para":"65-2","html":"
Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Update No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.
","snippet":"Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Update No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Cre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ce3206524e25bf6b4d37e88d12ac81f30adc9367164e0455dfed2baf72613dc","downloaded_from":"2026-09-09T23:41:35.438Z","last_downloaded_at":"2026-09-09T23:41:35.438Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478666","source_sha256":"f08f277c646d67da479bc87a6786276b8cdfa75d476bbe32e4835075133a3ced"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e0d12b35bec2995c12781c46be5df1dfe62036e7f55574cc0dedc31f03e34e6","downloaded_from":"2026-09-09T23:41:35.438Z","last_downloaded_at":"2026-09-09T23:41:35.438Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478666","source_sha256":"f08f277c646d67da479bc87a6786276b8cdfa75d476bbe32e4835075133a3ced"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ad71781a35dccd7de0e0e6072de62213b75db32b0fa331e369b8ca263499681","downloaded_from":"2026-09-09T23:41:35.438Z","last_downloaded_at":"2026-09-09T23:41:35.438Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478666","source_sha256":"f08f277c646d67da479bc87a6786276b8cdfa75d476bbe32e4835075133a3ced"}},{"number":"S00","label":"SEC 00 Status","anchor":"sec-00-status","is_sec":true,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"323-740-S00-1","para":"S00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
323-740-S99-1AmendedAccounting Standards Update No. 2009-0709/15/2009
323-740-S99-2AmendedAccounting Standards Update No. 2017-0301/23/2017
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n323-740-S99-1 | Amended | Accounting Standards Update No. 2009-07 | 09/15/2009 |\n323-740…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba0a9f275381cd567e46de9b847fd81f6b641d53ae3bad140eda2a233c9031c6","downloaded_from":"2026-09-09T23:41:42.973Z","last_downloaded_at":"2026-09-09T23:41:42.973Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477125","source_sha256":"702471896f0ff6a7d742e2612a5dd7fd12a6e4d60e35392d6d45828d4793403e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:add589e50ef351910ef372f30007626a939824c707fac4e6bf0d314c1399db1a","downloaded_from":"2026-09-09T23:41:42.973Z","last_downloaded_at":"2026-09-09T23:41:42.973Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477125","source_sha256":"702471896f0ff6a7d742e2612a5dd7fd12a6e4d60e35392d6d45828d4793403e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3facc28f074e59a578fbc60dbdd326e42dc4277222d391a41be8ac8e92feebc","downloaded_from":"2026-09-09T23:41:42.973Z","last_downloaded_at":"2026-09-09T23:41:42.973Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477125","source_sha256":"702471896f0ff6a7d742e2612a5dd7fd12a6e4d60e35392d6d45828d4793403e"}},{"number":"S25","label":"SEC 25 Recognition","anchor":"sec-25-recognition","is_sec":true,"groups":[{"block":"Qualified Affordable Housing Project Investments","heading":null,"paragraphs":[{"citation":"323-740-S25-1","para":"S25-1","html":"
See paragraph 323-740-S99-2, SEC Observer Comment: Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects, for SEC Staff views on extending the application of the effective yield method policy election used in affordable housing project investment to analogous situations.
","snippet":"See paragraph 323-740-S99-2, SEC Observer Comment: Accounting for Tax Benefits Resulting from Investments in Affordable Housing Projects, for SEC Staff views on extending the application of the effective yield method pol…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3a40d2153441ffb67c168546d8f6fc47b94c0e2cfb983f7f47f72303dc20fdf","downloaded_from":"2026-09-09T23:41:45.795Z","last_downloaded_at":"2026-09-09T23:41:45.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477565","source_sha256":"97bac9595ebbb5ce01d533f0559894ee8f4b2c9419a6178cb4021b4d375945a0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6dc2d22ef2d8013e674e6f9e85f4db2a79544a05b1ed4dc597aeb47fb0ac28c7","downloaded_from":"2026-09-09T23:41:45.795Z","last_downloaded_at":"2026-09-09T23:41:45.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477565","source_sha256":"97bac9595ebbb5ce01d533f0559894ee8f4b2c9419a6178cb4021b4d375945a0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71eb21e469789eb9735d5d5904334d11e79752796ece44997929048dd4bdd6c4","downloaded_from":"2026-09-09T23:41:45.795Z","last_downloaded_at":"2026-09-09T23:41:45.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477565","source_sha256":"97bac9595ebbb5ce01d533f0559894ee8f4b2c9419a6178cb4021b4d375945a0"}},{"number":"S50","label":"SEC 50 Disclosure","anchor":"sec-50-disclosure","is_sec":true,"groups":[{"block":null,"heading":"Income Taxes of Equity Method Investee","paragraphs":[{"citation":"323-740-S50-1","para":"S50-1","html":"
See paragraph 323-740-S99-1, SAB Topic 6.I.2, for SEC Staff views on disclosures pertaining to the income taxes of an equity method investee.
","snippet":"See paragraph 323-740-S99-1, SAB Topic 6.I.2, for SEC Staff views on disclosures pertaining to the income taxes of an equity method investee.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67e45d32bae891bcc9f8d147ad13c523b9a99df463625994ca2f1c872bd7e76f","downloaded_from":"2026-09-09T23:41:48.685Z","last_downloaded_at":"2026-09-09T23:41:48.685Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477498","source_sha256":"7dcffad0f4411031df18ec1686fe515f0e1749371ab8996bcf5335da5084b915"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e73f666ef3ffb42caced22d3f94e86d5a43534b241df355d1f3c99784170b3a","downloaded_from":"2026-09-09T23:41:48.685Z","last_downloaded_at":"2026-09-09T23:41:48.685Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477498","source_sha256":"7dcffad0f4411031df18ec1686fe515f0e1749371ab8996bcf5335da5084b915"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51ff1efd04f5bf637d6324ceefe17d6ada148a68f9a858cafa3d3bbbcfdc7b01","downloaded_from":"2026-09-09T23:41:48.685Z","last_downloaded_at":"2026-09-09T23:41:48.685Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477498","source_sha256":"7dcffad0f4411031df18ec1686fe515f0e1749371ab8996bcf5335da5084b915"}},{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"323-740-S99-1","para":"S99-1","html":"
The following is the text of SAB Topic 6.I.2, Taxes of Investee Company.
","snippet":"The following is the text of SAB Topic 6.I.2, Taxes of Investee Company.\nQuestion: If a registrant records its share of earnings or losses of a 50% or less owned person on the equity basis and such person has an effectiv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4b210d5e74152c01864b52d3f491f1b5856eeb89cc00579c926af85569ead55","downloaded_from":"2026-09-09T23:41:51.330Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478057","source_sha256":"6729929495a35a2c0a4c7b308ec6255d5819b7532b9e9f584fd34013227ffba4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7194d9f1e606322d318205ef5ecaac96e256fcb6cf38115596c7d4b1d55463e","downloaded_from":"2026-09-09T23:41:51.330Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478057","source_sha256":"6729929495a35a2c0a4c7b308ec6255d5819b7532b9e9f584fd34013227ffba4"}},{"block":"Qualified Affordable Housing Project Investments","heading":"SEC Staff Guidance","paragraphs":[{"citation":"323-740-S99-2","para":"S99-2","html":"
The following is the text of SEC Observer Comment: Accounting for Tax Benefits Resulting from Investments in Qualified Affordable Housing Projects. [The SEC Staff conformed this Comment to the guidance issued in Accounting Standards Update No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.]
","snippet":"The following is the text of SEC Observer Comment: Accounting for Tax Benefits Resulting from Investments in Qualified Affordable Housing Projects. [The SEC Staff conformed this Comment to the guidance issued in Accounti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e44e0640264f8ee07c5250cc2b6855d82571b35850e228fc43b8e4b0d66e59cc","downloaded_from":"2026-09-09T23:41:51.330Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478057","source_sha256":"6729929495a35a2c0a4c7b308ec6255d5819b7532b9e9f584fd34013227ffba4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4abc6add0f8694458dfa704926f3a9e65d745af1dd8a5ddf96121ddda557b56a","downloaded_from":"2026-09-09T23:41:51.330Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478057","source_sha256":"6729929495a35a2c0a4c7b308ec6255d5819b7532b9e9f584fd34013227ffba4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7aa35ba7a808f722b2f52293124bef97a1af671893f1ad82578b620077562b75","downloaded_from":"2026-09-09T23:41:51.330Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478057","source_sha256":"6729929495a35a2c0a4c7b308ec6255d5819b7532b9e9f584fd34013227ffba4"}}],"enrichment":{"summary":"ASC 323-740 provides standalone guidance on the proportional amortization method for equity investments in flow-through limited liability entities made primarily to receive income tax credits and other income tax benefits (e.g., LIHTC and other tax credit programs). If the conditions in 323-740-25-1 are met and the method is elected on a tax-credit-program-by-tax-credit-program basis (323-740-25-4), the investor amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits allocated to it, and reports that amortization within income tax expense (benefit) (323-740-35-2; 323-740-45-2).","key_points":["Election conditions (323-740-25-1): it is probable the allocable income tax credits will be available; the investor cannot exercise significant influence over the underlying project's operating and financial policies; substantially all projected benefits (on a discounted basis) are from income tax credits and other income tax benefits; the projected yield based solely on tax credit and tax benefit cash flows is positive; and the investor is a limited liability investor for both legal and tax purposes.","The proportional amortization method is an accounting policy election made on a tax-credit-program-by-tax-credit-program basis and applied consistently to all qualifying investments within the elected program, not investment by investment (323-740-25-4).","Amortization equals the initial investment balance less expected residual value, multiplied by the ratio of current-period allocated income tax credits and other income tax benefits to total estimated credits and benefits over the life of the investment (323-740-35-2), with a practical expedient to use only income tax credits if substantially similar (323-740-35-4).","Income tax credits are recognized in the period they are allocated to the investor for tax purposes; immediate recognition of all future credits at initial investment is prohibited (323-740-25-5; 323-740-30-1).","Amortization is presented as a component of income tax expense (benefit), while non-income-tax-related benefits are included in pretax earnings when realized or realizable and gains or losses on sale go to pretax earnings (323-740-45-2; 323-740-35-5).","Impairment is tested when events or circumstances indicate it is more likely than not that the carrying amount will not be realized; the loss equals carrying amount less fair value and may not be reversed (323-740-35-6); a liability is recognized for unconditional delayed equity contributions and for contingent contributions when probable (323-740-25-3).","Disclosures under 323-740-50-1 and 50-1A apply to all investments in an elected tax credit program (even those failing the 25-1 conditions) and cover the nature of investments, credits and benefits recognized, investment balances and line items, amortization in tax expense, non-income-tax-related activity, and significant changes in the investment or the relationship with the project."],"categories":["Income taxes","Subsequent measurement","Presentation","Disclosure"],"audience_level":"advanced","student_note":"This is the \"tax equity\" accounting model expanded by ASU 2023-02 beyond affordable housing to all qualifying tax credit programs; the classic mistakes are treating the election as investment-by-investment (it is by tax credit program) and recognizing the full stream of future tax credits at the date of investment, which 323-740-25-5 forbids.","related_topics":["323-10","740-10","740-30","450","842-50","270-10"],"key_concepts":["proportional amortization method","tax credit investments","flow-through limited liability entity","significant influence","income tax credits and other income tax benefits","policy election by tax credit program","delayed equity contributions","low-income housing tax credit"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97f97fe163dfb083929ec90f67e12e6272b9d0a4cca4b9089b18536e20da5d35","downloaded_from":"2026-09-09T23:41:07.480Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"842-50","title":"Leveraged Lease Arrangements","topic_title":"Leases","score":0.758,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36dc2eee00e97ff63e026a90ad4bdde33b84f9deadf4fb351f170583c39f3c07","downloaded_from":"2026-09-10T01:58:02.364Z","last_downloaded_at":"2026-09-10T01:58:37.823Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"323-970","title":"Real Estate—General","topic_title":"Investments—Equity Method and Joint Ventures","score":0.7391,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f71b3de1eb572eba14810fa072b30e91d99f582ef192434aa4e2e9217db9f063","downloaded_from":"2026-09-09T23:42:35.809Z","last_downloaded_at":"2026-09-09T23:43:01.427Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"323-30","title":"Partnerships, Joint Ventures, and Limited Liability Entities","topic_title":"Investments—Equity Method and Joint Ventures","score":0.7383,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fd095ee43089e0782081c16ff770ac81b51fb2d18e0cfc79e43ba9bed848066","downloaded_from":"2026-09-09T23:40:40.753Z","last_downloaded_at":"2026-09-09T23:41:05.466Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"505-10","title":"Overall","topic_title":"Equity","score":0.7323,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4465f6c5c75982beb33615873bb0a34557519633438e9c0f4b4d3f0378dd2e36","downloaded_from":"2026-09-10T00:36:31.592Z","last_downloaded_at":"2026-09-10T00:37:26.444Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"810-958","title":"Not-for-Profit Entities","topic_title":"Consolidation","score":0.7281,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:35358134e73c374ff80fa852aec1c9a043b115d17e16e227ffbc39b79599b107","downloaded_from":"2026-09-10T01:33:02.909Z","last_downloaded_at":"2026-09-10T01:33:29.760Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-30","title":"Imputation of Interest","topic_title":"Interest","score":0.7261,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd8ad5de7d9ab1abc3cc86bfff9b85b5d0f1021b374add4cc570f8e997734cfa","downloaded_from":"2026-09-10T01:49:32.218Z","last_downloaded_at":"2026-09-10T01:50:15.507Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"323-30","title":"Partnerships, Joint Ventures, and Limited Liability Entities","topic_title":"Investments—Equity Method and Joint Ventures","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62e19549853ecfc852a10f927102bca27b08a20a641a05f19f75c9ac79c7524a","downloaded_from":"2026-09-09T23:40:40.753Z","last_downloaded_at":"2026-09-09T23:41:05.466Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"323-932","title":"Extractive Activities—Oil and Gas","topic_title":"Investments—Equity Method and Joint Ventures","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d246f6cb2eaf40a9a2da5d9bf72edd8da1270cd3b64ef314434dcf2eca8fb65a","downloaded_from":"2026-09-09T23:41:55.287Z","last_downloaded_at":"2026-09-09T23:42:09.804Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ca5724f2ee694ff44f84c3f76114e5edb53270a6370f1add09e86e14f6e9337","downloaded_from":"2026-09-09T23:41:07.480Z","last_downloaded_at":"2026-09-09T23:41:51.330Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}