### Question
What is the definition of qualified Caribbean Basin country investment?


### Answer
The definition of **qualified Caribbean Basin country investment** is as follows in *26 U.S.C. § 936*:

> any investment if—


(I) the income from such investment is treated as qualified possession source investment income by reason of subparagraph (A), and


(II) such investment is not (directly or indirectly) a refinancing of a prior investment (whether or not such prior investment was a qualified Caribbean Basin country investment)

#### Citation:
  - *26 U.S.C. § 936*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart D-Possessions of the United States**

