AICPA News – Sept. 2024

AICPA News is a round-up of recent announcements from the American Institute of CPAs.

AICPA Submits Comments on Domestic Content Bonus Credit Requirements

The American Institute of CPAs (AICPA) recently provided recommendations to the Department of the Treasury and the Internal Revenue Service (IRS) on interim guidance in Notice 2023-38 as updated by Notice 2024-41. The guidance describes certain rules that Treasury and the IRS intend to include in proposed regulations regarding the domestic content bonus credit (DCBC) requirements and related recordkeeping and certification requirements.

Per the interim guidance, to qualify for the DCBC, customers will need to know the exact amount of the manufactured product and components costs and which components are domestically produced. Looking through those costs allows customers to see sensitive supply chain information and, as expected, suppliers may not willingly give up that information.

This requirement has caused significant pressure on taxpayers who need the DCBC to make the economics of an energy project viable, as the guidance describes general recordkeeping requirements a taxpayer must meet to substantiate the domestic content requirement.

The AICPA’s recommendations include the following:

1. Two approaches to provide a better calculation related to the Adjusted Percentage Rule:
   
   A) Allow taxpayers to provide support for the domestic direct costs, both material and labor, the manufacturer incurs to produce a manufactured product in the U.S. and include those amounts in the numerator regardless of whether there is a non-domestic manufactured product component.
   B) Assume that the direct costs that are attributable to producing a manufactured product are incurred proportionately to the components’ costs. If there are two components that cost an equal amount and only one of the two components is domestically produced, then half of the direct costs to further produce the manufactured product is included in the numerator if the manufactured product is produced in the U.S.
2. Safe Harbor for Classifications of Certain Applicable Project Components – provide additional safe harbors on geothermal energy property, combined heat and power system property, waste energy recovery property, and qualified biogas property projects to reduce uncertainty and minimize the use of IRS resources.
3. Retrofitted Projects – clarify that section 4 of Notice 2023-38 (updated by Notice 2024-41) only applies to projects that would amount to an improvement under Section 263(a) and not a new distinct project.
4. Certification Requirements – the proposed regulations should endorse the service provider as a lockbox. Alternatively, Treasury and the IRS could accept as substantiation of the DCBC a statement by the supplier as to the breakdown between domestic and non-domestic costs signed under penalties and perjury.

AICPA & CIMA’s CGMA Leadership Academy Shapes Future Accounting, Finance, and Business Leaders

The world’s premier finance and accounting body, AICPA & CIMA, together as the Association of International Certified Professional Accountants, will host the fourth edition of their flagship leadership program, the CGMA Leadership Academy, in Kuala Lumpur, Malaysia, from 7 to 10 October 2024 under the theme “Transformative Leadership for a Sustainable Future”.

Over four days, Chartered Global Management Accountants (CGMA designation holders) will have access to curated content, high-profile speakers, live case study discussions, and knowledge-sharing roundtables on topics such as ESG and business sustainability, digital transformation and AI, effective communication and interpersonal skills, leadership and fostering resilience. This intensive program will enable attendees to gain new insights and develop the necessary skills to drive innovation, sustainable business performance, and growth within their organization.

Accounting Pipeline Diversity Symposium Provides Learning, Mentorship Opportunities

Accounting professionals and students will gather in Atlanta in mid-October for the American Institute of CPAs (AICPA) Accounting Pipeline Diversity Symposium (APDS) and Accounting Scholars Leadership Workshop (ASLW). The two events will overlap for two days, and both groups will have the opportunity to interact, benefit and learn from one another.

Professionals will be learning and working collaboratively on strategies and best practices for maintaining a strong and diverse talent pool for the profession, and the students will have the opportunity to meet with, ask questions of, and seek mentors among the professionals in attendance at the APDS.

In addition to earning CPE credits, symposium attendees will benefit from:

• Collaborating with like-minded professionals who strive to inspire the next generation;
• Discovering best practices and actionable strategies from diversity, equity and inclusion (DEI) subject matter experts;
• Learning tips for how to retain staff at their firm or organization;
• Understanding efforts that AICPA & CIMA makes in support of the next generation; and
• Meeting and forming connections with ethnic minority accounting and finance students who could add value to their firm or organization.

The AICPA Accounting Pipeline Diversity Symposium will take place from October 16 to 17 at the Marriott Atlanta Perimeter Center in Atlanta, GA. The AICPA Accounting Scholars Leaderships Workshop, held at the same location, runs from October 16-18.

The two events are developed and steered by the AICPA & CIMA National Commission on Diversity and Inclusion, which aims to develop a profession where there is a seamless handoff of students from ethnically diverse backgrounds into the profession, who feel empowered to stay and excel, and who advance into leadership positions and feel a sense of belonging.