Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 411

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 411
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 July 4, 2025, President Trump signed into law a budget reconciliation bill, the “One Big Beautiful Bill” Act (Bill), which significantly reduced the availability of federal tax credits for renewable technologies established under the Inflation Reduction Act (IRA) of 2022. IRA tax credits for wind and solar were substantially rolled back as part of the Bill. The Bill retained the 100 per cent value tax credits for wind and solar through 2027, provided that the projects are placed in service by Dec. 31, 2027. An exception applies for wind and solar projects that start construction by July 3, 2026 and complete construction by 2030. On Aug. 15, 2025, the Internal Revenue Service (IRS) revised its guidance for “begin of construction” rules for wind and solar tax credits. The guidance removed the five per cent safe harbor method and left intact the physical work test to begin construction. The four-year construction continuity safe harbor remains in place; it allows projects to qualify for tax credits if placed in service up to four full calendar years after construction begins. The Bill also introduces supply chain limitations on project components from foreign entities of concern which may receive additional guidance from the IRS. The Bill retains the IRA’s favourable transferability provisions, preserving the ability to sell or transfer credits for the full duration of the credit. Additionally, the Bill provides favourable treatment for energy storage with full tax credits available for projects starting construction before 2033. In addition to federal actions, state and regional renewable and climate policies continue to have a significant impact on the pace of energy transition in the country. The Company continues to assess actions at all levels of government as they emerge. Australia On March 8, 2025, a state election occurred in Western Australia. The Labor government, led by Premier Roger Cook won a third consecutive four-year term. The re-electionof the Labor government is expected to provide continued stability in the state. The Australian federal election was held on May 3, 2025. The Labor Party secured a majority government and a second term. The results are not expected to have a significant impact on TransAlta.

| M70 |     | TransAlta Corporation |

Management’s Discussion and Analysis Disclosure Controls and Procedures Management is responsible for establishing and maintaining adequate internal control over financial reporting (ICFR) and disclosure controls and procedures (DC&P). During the three and nine months ended Sept. 30, 2025, the majority of our workforce supporting and executing our ICF