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INCOME TAXES
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
PROVISION FOR INCOME TAXES INCOME TAXES
 Third QuarterFirst Nine Months
(Dollars in millions)2021202020212020
$%$%$%$%
Provision for income taxes and tax rate$(33)(10)%$25 13 %$66 12 %$50 10 %
Third quarter and first nine months 2021 effective tax rates include a $65 million decrease to the provision for income taxes as a result of decreases in unrecognized tax positions, a portion of which related to the 2017 Tax Cuts and Jobs Act. Additionally, first nine months 2021 effective tax rate includes a $20 million decrease to the provision for income taxes from the revaluation of deferred tax liabilities as a result of business held for sale classification of certain assets. First nine months 2020 effective tax rate included a $19 million decrease to the provision for income taxes as a result of a decrease in unrecognized tax positions and a $7 million decrease to the provision for income taxes related to estimated adjustments to certain prior year tax returns.

At September 30, 2021 and December 31, 2020 Eastman had $193 million and $257 million, respectively, in unrecognized tax benefits. At September 30, 2021, it is expected that, as a result of the resolution of federal, state, and foreign examinations and appeals, and the expiration of various statutes of limitation, the total amounts of unrecognized tax benefits will decrease by up to $20 million within the next 12 months.

Income tax incentives, in the form of tax holidays, have been granted to the Company in certain jurisdictions to attract investment and encourage industrial development. The expiration of these tax holidays varies by country. The tax holidays are conditional on the Company meeting certain requirements, including employment and investment thresholds; determination of compliance with these conditions may be subject to challenge by tax authorities in those jurisdictions. No individual tax holiday had a material impact to the Company's earnings in third quarter or first nine months 2021 or 2020.