Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p37
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 93743–96267

or
 (ii) if the tax credit has not been transferred, or has been transferred to a related party—similar tax credits have been traded between unrelated parties at a price that equals or exceeds its Marketable Price Floor.
 (6) A tax credit meets the requirement in this subsection if:
 (a) the tax credit meets the requirement in subsection (4); and
 (b) the purchaser acquired the tax credit from an unrelated party at a price that equals or exceeds its Marketable Price Floor.

Related parties
 (7) For the purposes of this section, 2 Entities are related parties of each other if:
 (a) one of the Entities owns, directly or indirectly:
 (i) at least 50% of the beneficial interest in the other Entity; or
 (ii) if the other Entity is a company—at least 50% of the aggregate vote and value of the other Entity's shares; or
 (b) another Entity owns, directly or indirectly, at least 50% of the beneficial interest in each of the 2 Entities; or
 (c) if the 2 Entities are companies—another Entity owns, directly or indirectly, at least 50% of the aggregate vote and value of the shares in each of the 2 Entities; or
 (d) if one of the 2 Entities is a company—another Entity owns, directly or indirectly:
 (i) at least 50% of the aggregate vote and value of the shares in the Entity that is a company; and
 (ii) at least 50% of the beneficial interest in the other Entity; or
 (e) based on all the relevant facts and circumstances:
 (i) one of the Entities controls the other Entity; or
 (ii) one or more other Entities or individuals control both of the Entities.

3‑135  Meaning of Marketable Price Floor
 (1) The Marketable Price Floor of a tax credit is 80% of the net present value (the NPV) of the amount of the tax credit, computed in accordance with subsections (2), (3) and (4).
 (2) Compute the NPV based on the yield to maturity on a debt instrument that:
 (a) if the tax credit meets the requirement in subsection 3‑130(3)—is issued in the Origination Year, by the government that issued the tax credit; and
 (b) if the tax credit meets the requirement in subsection 3‑130(4)—is issued in the Fiscal Year in which the tax credit is transferred to the purchaser, by the government that issued the tax credit; and
 (c) has a maturity that is equal or similar to the period during which the tax credit can be used by the holder of the credit to reduce its liability for a Covered Tax (but not exceeding 5 years).
 (3) Base the cash flow projection used in computing the NPV on the maximum amount that can be used each