3‑125 Meaning of Qualified Refundable Ta3‑125 Meaning of Qualified Refundable Tax Credit, Non‑Qualified Refundable Tax Credit and Refundable Tax Credit

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) after it has been used to reduce or discharge any liability to Covered Taxes; or (b) in the absence of any liability for Covered Taxes.