Exposure Draft on Tax Abatement Disclosures Issued
Providing financial statement users guidance on tax abatement programs, an exposure draft for the proposed Tax Abatement Disclosures (Statement) has been issued by the Governmental Accounting Standards Board. Open for public comment, the proposed guidance focuses on tax abatements stemming from agreements entered into by a reporting government, along with those originated by other governments that cut the reporting government’s tax revenues.
If approved, the Statement would mark the first time state and local governments are required to reveal information regarding property and other tax abatement agreements. Particularly, governments would have to disclose general information like the tax being abated, number of tax abatement agreements, and the dollar amount of taxes abated.
Comments on the exposure draft are due January 30, 2015.
In the meantime, Cherry Bekaert can assist in finding every tax credit and incentive available to your company.