# ASC 470-970-05: Debt — Real Estate—General — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 470-970-05: 05 Overview and Background

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##### [470-970-05-1](https://asc.understandingaccounting.org/asc/470/970/#470-970-05-1)

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This Subtopic provides recognition and implementation guidance on tax increment financing entities.

##### [470-970-05-2](https://asc.understandingaccounting.org/asc/470/970/#470-970-05-2)

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Municipalities often levy special assessments to finance the construction of certain infrastructure assets or improvements or may levy special assessments for other specified purposes. Alternatively, an entity that intends to develop real estate it owns or leases may form a tax increment financing entity to finance and operate the project infrastructure. Tax increment financing entities are authorized under various state statutes to issue bonds to finance the construction of road, water, and other utility infrastructure for a specific project. Usually, all of the debt is issued by the tax increment financing entity and will be repaid by future user fees or taxes assessed to cover operating costs, such as repairs and maintenance, as well as debt service.

##### [470-970-05-3](https://asc.understandingaccounting.org/asc/470/970/#470-970-05-3)

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The Variable Interest Entities Subsections of Subtopic 810-10 address consolidation by business entities of variable interest entities (VIEs), which may include many special-purpose entities of the type used as tax increment financing entities.