Financial Accounting Standards Board Update Eases Hurdles for Renewable Energy Investors

WASHINGTON, D.C. – The Financial Accounting Standards Board (FASB) published its final accounting standard update for proportional amortization today, which officially expands this method of accounting to renewable energy tax credit structures. Following is a statement from Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE):

“FASB’s new accounting standards update will help unlock essential capital for our nation’s energy transition. Expanding proportional amortization to renewable energy tax credit structures not only eases hurdles for existing market participants, it also opens the door to new, non-traditional renewable investors. We applaud FASB’s change which better reflects the economics of today’s renewable energy transactions and will help address the surging demand for tax equity following the passage of the Inflation Reduction Act.”

Background:

In 2022, ACORE issued two sets of comments to FASB in support of expanding the proportional amortization method of accounting to renewable energy tax credit structures. To read our March 2022 submission, click here. To read our October 2022 submission, click here.

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About ACORE:

For more than 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s premier pan-renewable nonprofit organization. ACORE unites finance, policy and technology to accelerate the transition to a renewable energy economy. For more information, please visit www.acore.org.

Media Contacts:

Alex Hobson
Sr. Vice President, Communications
American Council on Renewable Energy
hobson@acore.org | 202.777.7584 (o) | 202.594.0706 (c)

Dylan HelmsAssociate, CommunicationsAmerican Council on Renewable Energyhelms@acore.org | 202.891.7868 (o) | 727.290.8804 (c)