Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 451

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 10
Chunk 451
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 certain thresholds and (ii) such U. S. Holders’ “net investment income” (or “undistributed net investment income” in the case of estates and trusts). Net investment income generally is expected to include an applicable U. S. Holder’s allocable share of BEP’s income, as well as gain realized by the U. S. Holder from a sale of LP units. Each U. S. Holder should consult its own tax adviser regarding the implications of the 3.8% Medicare tax for its ownership and disposition of LP units.

Foreign Tax Credit Limitations

Each U. S. Holder generally will be entitled to a foreign tax credit with respect to such U. S. Holder’s allocable share of creditable foreign taxes paid on BEP’s income and gains. Complex rules may, depending on such U. S. Holder’s particular circumstances, limit the availability or use of foreign tax credits. Gain from the sale of BEP’s investments may be treated as U. S.-source gain. Consequently, a U. S. Holder may not be able to use the foreign tax credit arising from any foreign taxes imposed on such gain unless the credit can be applied (subject to applicable limitations) against U. S. tax due on other income treated as derived from foreign sources. Certain losses that BEP incurs may be treated as foreign-source losses, which could reduce the amount of foreign tax credits otherwise available.

Deduction for Qualified Business Income

For taxable years beginning after December 31, 2017, and before January 1, 2026, non-corporate U. S. taxpayers who have domestic “qualified business income” from a partnership generally are entitled to deduct the lesser of such qualified business income or 20% of taxable income. The 20% deduction is also allowed for “qualified publicly traded partnership income”. A U. S. Holder’s allocable share of BEP’s income is not expected to be treated as

qualified business income or as qualified publicly traded partnership income, and the 20% deduction for such amounts is not available for taxable years beginning after December 31, 2025.

Section 754 Election

BEP and BRELP have each made the election permitted by Section 754 of the U. S. Internal Revenue Code (the “Section 754 Election”). The Section 754 Election cannot be revoked without the consent of the IRS. The Section 754 Election generally requires BEP to adjust the tax basis in its assets, or inside basis, attributable to