The Financial Accounting Standards Board (FASB) published Accounting Standards Update (ASU) 2023-02 on March 29, which expands the proportional amortization method to account for investments in all tax credit structures. That accounting method was previously allowed only for low-income housing tax credit (LIHTC) investments, but now is available, by election, to all community development tax credit investment reporting that meet five conditions. Michael Novogradac, CPA, and Novogradac partner Nat Eng, CPA, discuss the implications of ASU 2023-02 for renewable energy investment, including key aspects of the guidance, the hurdles of applying proportional amortization and ways to overcome those hurdles.