Article 23 - Qualified Refundable Tax Credits and Marketable Transferable Tax Credits

Amounts of QRTCs and Marketable Transferable Tax Credits, when applicable in the State, shall be treated as income in the calculation of the CE’s GloBE income or loss. Non-QRTCs shall not be treated as income in the calculation of the GloBE income or loss. Amounts of QRTCs or Marketable Transferable Tax Credits that flow through a Tax-Transparent Entity shall be treated as income in the GloBE income or loss of the owner.

Amounts of Non-QRTCs or Marketable non-Transferable Tax Credits, or non-Refundable Tax Credits that pass through a Tax Transparent Entity to the owner shall not be treated as income or loss under GloBE but rather treated as an adjustment to covered taxes of the owner, unless such amounts are a Qualified Flow-through Tax Benefit.

If the Refundable or Marketable Transferable Tax Credit relates to the acquisition or creation of an asset, the CE may apply its accounting policy for purposes of determining its GloBE income or loss, provided the policy results in one of the following:

1. A reduction in the carrying value of the asset;

2. Recognition of the tax credit as deferred income.