New Markets Tax Credit Investments Could Get Clearer Accounting

Banks and businesses that invest in tax breaks meant to encourage development in struggling communities could get accounting rules that make it easier to convey how doing so affects their bottom lines.

The Financial Accounting Standards Board on Wednesday agreed to consider allowing banks that invest in New Markets Tax Credits to amortize, or spread out, the initial cost of the investment in proportion to the tax credits and other tax benefits they receive.

The New Markets Tax Credit program allows investors to receive a credit against their federal income tax in exchange for making qualified ...