Company: BEP
Filing Date: 2025-11-12
Form Type: 424B5
Source: 0001193125-25-275856
Chunk: 43

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-11-12
Form: 424B5
Chunk 43
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 BRELP have each made the election permitted by Section 754 of the Code (the “Section754 Election”). The Section 754 Election cannot be revoked without the consent of the IRS. The
Section 754 Election generally requires the Partnership to adjust the tax basis in its assets, or inside basis, attributable to a transferee of LP Units under Section 743(b) of the Code to reflect the purchase price paid by the transferee
for LP Units. This election does not apply to a person who purchases LP Units directly from the Partnership. For purposes of this discussion, a transferee’s inside basis in the Partnership’s assets will be considered to have two
components: (i) the transferee’s share of the Partnership’s tax basis in the Partnership’s assets, or common basis, and (ii) the adjustment under Section 743(b) of the Code to that basis. The foregoing rules would
also apply to BRELP.

Generally, a Section 754 Election would be advantageous to a transferee U.S. Holder if such U.S. Holder’s
tax basis in its LP Units were higher than such LP Units’ share of the aggregate tax basis of the Partnership’s assets immediately prior to the transfer. In that case, as a result of the Section 754 Election, the transferee U.S.
Holder would have a higher tax basis in its share of the Partnership’s assets for purposes of calculating, among other items, such holder’s share of any gain or loss on a sale of the Partnership’s assets. Conversely, a
Section 754 Election would be disadvantageous to a transferee U.S. Holder if such U.S. Holder’s tax basis in its LP Units were lower than such LP Units’ share of the aggregate tax basis of the Partnership’s assets immediately
prior to the transfer. Thus, the fair market value of LP Units may be affected either favorably or adversely by the election.

Without
regard to whether the Section 754 Election is made, if LP Units are transferred at a time when the Partnership has a “substantial built-in loss” in its assets, the Partnership will be
obligated to reduce the tax basis in the portion of such assets attributable to such LP Units.

The calculations involved in the
Section 754 Election are complex, and the General Partner and the general partner of BRELP advise that each will make such calculations on the basis of assumptions as to the value of the Partnership assets and other matters. Each U.S. Holder
should consult its own tax adviser as to the