Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p35
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 89023–91534

as loss, or as an increase to the carrying value of the asset (as the case may be), in the Fiscal Year of the expiration.
 (3) If the tax credit has been transferred to an Entity (the purchaser) that is an unrelated party of the Originator for a price (the purchase price), the following rules apply:
 (a) if all or a portion (the used proportion) of the tax credit is used in a Fiscal Year (the use year) by the purchaser to satisfy its liability for a Covered Tax for a Fiscal Year—treat the used proportion of the following amount as income in the use year:
 (i) the face value of the tax credit as transferred;
  reduced (but not below zero) by:
 (ii) the purchase price;
 (b) if the tax credit is sold by the purchaser to another person for a price (the sale price)—treat as income or loss (as the case may be) in the Fiscal Year of the transfer:
 (i) the sum of the sale price and so much of the credit as has been used by the purchaser;
  reduced by:
 (ii) the sum of the purchase price and any amounts treated as income under paragraph (a);
 (c) if all or a portion of the tax credit expires without use—treat as loss in the Fiscal Year of the expiration:
 (i) the total of the purchase price and any amounts treated as income under paragraph (a);
  reduced (but not below zero) by:
 (ii) the amount of the tax credit used by the purchaser.

3‑125  Meaning of Qualified Refundable Tax Credit, Non‑Qualified Refundable Tax Credit and Refundable Tax Credit
 (1) A Refundable Tax Credit is a Qualified Refundable Tax Credit to the extent that it must be paid as cash or available as cash equivalents within 4 years from when a Constituent Entity first satisfies the conditions for receiving the credit under the laws of the jurisdiction granting the credit.
 (2) However, the Refundable Tax Credit is not a Qualified Refundable Tax Credit:
 (a) if it is issued under a tax credit regime with a refund mechanism that has no practical significance for those taxpayers that will be entitled to the tax credit; or
 (b) to the extent that it includes an amount of Tax creditable or refundable under a Qualified Imputation Tax or a Disqualified Refundable Imputation Tax.
 (3) A Non‑Qualified Refundable Tax Credit is a Refundable Tax Credit that is not a Qualified Refundable Tax Credit or a Marketable Transferable Tax Credit.
 (4) A tax credit is a Refundable Tax Credit if it is payable in cash or cash equivalents (including by way of discharge against a liability to a Tax which is not a Covered Tax):
 (a)