Illustration of FASB transferable tax credits accounting project — IRA, CHIPS, and OBBBA credit accounting gap, ASC 740 vs ASC 832 analogies, recognition triggers
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FASB Transferable Tax Credits Project: Accounting Gap Guide

BySW Accounting admin

How should companies account for transferable tax credits under U.S. GAAP? The Financial Accounting Standards Board (FASB) voted in May 2026 to advance a project on the accounting treatment of nonrefundable transferable tax credits — including the Inflation Reduction Act (IRA) clean energy credits under IRC §6418, CHIPS and Science Act semiconductor credits, and One…

Government grants accounting us gaap featured
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Government Grants Accounting: US GAAP Treatment and Disclosures

BySW Accounting admin

How should businesses account for government grants under US GAAP? US GAAP has no comprehensive standard for business government grants, so entities apply an accounting policy by analogy — typically IAS 20 (deferred income or net asset reduction), ASC 958-605 contribution model, or revenue recognition — and now must comply with ASU 2024-04’s enhanced disclosure…