Company: EMICF
Filing Date: 2025-09-30
Form Type: 424B2
Source: 0000950103-25-012565
Chunk: 68

Company: EMERA INC
Filing Date: 2025-09-30
Form: 424B2
Chunk 68
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 the IRS were to successfully challenge this treatment, interest payments
on the Notes could be treated for U.S. federal income tax purposes as dividends to the extent of the applicable current or accumulated
earnings and profits. In the case of Non-U.S. Holders (as defined below), interest payments treated as dividends could be subject to withholding
of U.S. income tax, except to the extent a reduced rate is provided by an applicable income tax treaty. In addition, such a determination
could constitute a Tax Event that would entitle us to redeem the Notes as described under “Description of the Notes—Redemption—Redemption
Following a Tax Event.” The Issuer agrees, and by acquiring an interest in a Note, each beneficial owner of a Note will agree, to
treat the Notes as indebtedness and the interest thereon as U.S. source, for U.S. federal income tax purposes. Holders should consult
their tax advisors regarding the tax consequences that will arise if the Notes are not so treated. The remainder of this discussion assumes
such treatment is respected.

Tax Consequences to U.S. Holders

As used herein, the term
“U.S. Holder” means a beneficial owner of a Note that is, for U.S. federal income tax purposes:

| · | a citizen or individual resident of the United States; |

| · | a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created     
 or organized in or under the laws of the United States, any state thereof or the District of Columbia; or |

| · | an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. |

Payments of Interest

Subject to the discussion
immediately below, stated interest paid on a Note will be taxable to a U.S. Holder as ordinary interest income at the time it accrues
or is received, in accordance with the U.S. Holder’s method of accounting for U.S. federal income tax purposes.

The Notes should be treated
as “variable rate debt instruments” for U.S. federal income tax purposes. If the Notes were not treated as variable rate debt
instruments, then the Notes would generally be treated as “contingent payment debt instruments,” in which case U.S. Holders
could be required to accrue interest income on the Notes in excess of stated interest and would be required to treat as ordinary income
rather than as capital gain any income realized on a taxable disposition