Easier Accounting for Solar, Wind Tax Credits In the Works

Banks and other businesses that invest in tax credit programs designed to spur interest in renewable energy or urban revitalization programs could get accounting rules that make it easier to convey how doing so affects their bottom lines.

The Financial Accounting Standards Board on Wednesday unanimously agreed to release for public comment a proposal that would expand a special accounting method that currently is restricted to investments in low-income housing tax credits.

The special accounting method—called proportional amortization—allows businesses to spread out the initial cost of the investment in proportion to the tax credits and other tax benefits they ...