Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 454

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 10
Chunk 454
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 respect to that U. S. Holder for any subsequent taxable year during which the U. S. Holder continues to hold an interest in the corporation, even if the corporation’s income or assets would not cause it to be a PFIC in such subsequent taxable year, unless an exception applies.

Subject to certain elections described below, any gain on the disposition of stock of a PFIC owned by a U. S. Holder indirectly through BEP, as well as income realized on certain “excess distributions” by the PFIC, would be treated as though realized ratably over the shorter of the U. S. Holder’s holding period of LP units or BEP’s holding period for the PFIC. Such gain or income generally would be taxable as ordinary income, and dividends paid by the PFIC would not be eligible for the preferential tax rates for dividends paid to non-corporate U. S. Holders. In addition, an interest charge would apply, based on the tax deemed deferred from prior years.

If a U. S. Holder were to make an election to treat such U. S. Holder’s share of BEP’s interest in a PFIC as a “qualified electing fund” (a “QEF Election”) for the first year such holder were treated as holding such interest, then in lieu of the tax consequences described in the paragraph immediately above, the U. S. Holder would be required to include in income each year a portion of the ordinary earnings and net capital gains of the PFIC, even if not distributed to BEP or to the holder. A QEF Election must be made by a U. S. Holder on an entity-by-entity basis. To make a QEF Election, a U. S. Holder must, among other things, (i) obtain a PFIC annual information statement (through an intermediary statement supplied by BEP) and (ii) prepare and submit IRS Form 8621 with such U. S. Holder’s annual income tax return. To the extent reasonably practicable, BEP intends to timely provide U. S. Holders with the information necessary to make a QEF Election with respect to any BEP entity that the Managing General Partner and the BRELP General Partner believe is a PFIC with respect to a U. S. Holder. Any such election should be made for the first year BEP holds an interest in such entity or for the first year in which a U. S. Holder holds LP units, if later. Non-corporate U. S