Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p38
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 96059–98767

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 year under the legal design of the credit, having regard to any amount used in a previous year.
 (4) In computing the NPV, treat the amount of the tax credit as being the lower of:
 (a) the face value of the tax credit; and
 (b) the remaining creditable amount in relation to the tax credit.

3‑140  Meaning of Non‑Marketable Transferable Tax Credit and Other Tax Credit
 (1) A Non‑Marketable Transferable Tax Credit is:
 (a) a tax credit that:
 (i) is held by the person to whom the tax credit was originally granted; and
 (ii) is transferable; and
 (iii) is not a Marketable Transferable Tax Credit; or
 (b) a tax credit that:
 (i) is held by a purchaser; and
 (ii) is not a Marketable Transferable Tax Credit.
 (2) However, for the purposes of this instrument, treat a tax credit as not being a Non‑Marketable Transferable Tax Credit to the extent that it is also Qualified Refundable Tax Credit.
 (3) A tax credit is an Other Tax Credit to the extent that it is not any of the following:
 (a) a Qualified Refundable Tax Credit;
 (b) a Marketable Transferable Tax Credit;
 (c) a Non‑Marketable Transferable Tax Credit.

3‑145  Adjustment—loss on transfer of purchased Non‑Marketable Transferable Tax Credits
 (1) Subsection (2) applies if:
 (a) a Constituent Entity transferred a Non‑Marketable Transferable Tax Credit during a Fiscal Year; and
 (b) the Constituent Entity is not the person to whom the tax credit was originally granted; and
 (c) the transfer amount (see subsection (3)) is a negative number.
 (2) In computing the Constituent Entity's GloBE Income or Loss for the Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to include the transfer amount.
 (3) For the purposes of paragraph (1)(c) and subparagraph 4‑20(1)(c)(ii), the transfer amount is:
 (a) the sum of:
 (i) the amount of the tax credit that has been used by the Constituent Entity; and
 (ii) the amount (if any) received by the Constituent Entity in exchange for the transfer;
reduced by:
 (b) the sum of:
 (i) the Constituent Entity's purchase price of the tax credit; and
 (ii) each amount credited or refunded to the Constituent Entity mentioned in subsection 4‑20(2), as reduced by subsection 4‑20(3) (whether in the Fiscal Year or a previous Fiscal Year).
Note: If the transfer amount is a positive number, it is included in the Constituent Entity's Reduction to Covered Taxes: see subparagraph 4‑20(1)(c)(ii).

3‑150  Adjustment—assets and liabilities