Summary of Interpretation No. 32

Application of Percentage Limitations in Recognizing Investment Tax Credit—an interpretation of APB Opinions 2, 4, and 11


The Revenue Act of 1978 changed the statutory percentage limitations that determine the extent to which federal income tax otherwise payable is offset by investment tax credit. This Interpretation clarifies the percentage limitations to be used in recognizing investment tax credit in the computation of income tax expense for financial reporting purposes.