PNC Wants Clearer Accounting For Housing Investment Tax Credits

Banks want to make it easier for the readers of their financial statements to understand investments in tax credits designed to spur development in distressed communities, PNC Financial Services Group Inc. wrote to accounting rulemakers.

The way the New Markets Tax Credit is described on a business’s income statement makes it difficult to understand the tax-related benefit of the programs, PNC wrote to the Financial Accounting Standards Board on Feb. 2. Businesses have to spend time explaining the “accounting complexities” to their investors and analysts, PNC said.

The Pittsburgh-based bank asked FASB to expand on work it completed in 2014, ...