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In 2014, FASB created an accounting election for entities to apply the proportional amortization method to low-income housing tax credit (LIHTC) structures. On March 29, 2023, FASB issued Accounting Standards Update 2023-02, which expands this accounting election—under certain conditions—to other existing programs, such as the new markets tax credit, historic rehabilitation tax credit, and renewable energy tax credit, as well as any new federal and state programs. Certain existing specialized guidance for LIHTC investments has been removed to provide more comparable accounting for all tax programs. This article provides details on the expansion.

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