Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 224

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 3
Chunk 224
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 of BEP and BRELP, respectively, to avoid generating income connected with the conduct of a

trade or business (which income generally would constitute “unrelated business taxable income” (“UBTI”) to the extent allocated to a tax-exempt organization). However, no assurance can be provided that neither BEP nor BRELP will generate UBTI in the future. In particular, UBTI includes income attributable to debt-financed property, and neither BEP nor BRELP is prohibited from financing the acquisition of property with debt. In addition, even if indebtedness were not used by BEP or BRELP to acquire property but were instead used to fund distributions to LP unitholders, if a tax-exempt organization were to use such proceeds to make an investment outside BEP, the IRS could assert that such investment constituted debt-financed property to such LP unitholder. The potential for income to be characterized as UBTI could make LP units an unsuitable investment for a tax-exempt organization. Each tax-exempt organization should consult its own tax adviser to determine the U. S. federal income tax consequences with respect to an investment in LP units.

If BEP were engaged in a U. S. trade or business, non-U. S. persons would face certain adverse U. S. tax consequences from owning LP units.

The Managing General Partner and the BRELP General Partner intend to use commercially reasonable efforts to structure the activities of BEP and BRELP, respectively, to avoid generating income treated as effectively connected with a U. S. trade or business, including effectively connected income attributable to the sale of a “ United States real property interest”, as defined in the U. S. Internal Revenue Code. If, contrary to the Managing General Partner’s expectations, BEP is considered to be engaged in a U. S. trade or business or realizes gain from the sale or other disposition of a U. S. real property interest, Non-U. S. Holders generally would be required to file U. S. federal income tax returns and pay U. S. federal income tax at the regular graduated rates, and distributions to Non-U. S. Holders could be subject to U. S. federal withholding tax at the highest applicable effective tax rates. If, contrary to expectation, BEP were engaged in a U. S. trade or business, then gain or loss from the sale of LP units by a Non-U. S. Holder would be treated as effectively connected with such trade or business to the extent that such Non