Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 28

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 3
Chunk 28
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 consequences for U. S. taxpayers that are holders of the Ordinary Shares
if we are or were to become a PFIC.

Based
on the projected composition of our income and valuation of our assets, we may be a passive foreign investment company, or PFIC, for 2024
and may become or continue to be a PFIC in the future. The determination of whether we are a PFIC is made on an annual basis and will
depend on the composition of our income and assets from time to time. We will be treated as a PFIC for U. S. federal income tax purposes
in any taxable year in which either (1) at least 75% of our gross income is “passive income” or (2) on average at least 50%
of our assets by value produce passive income or are held for the production of passive income. Passive income for this purpose generally
includes, among other things, certain dividends, interest, royalties, rents and gains from commodities and securities transactions and
from the sale or exchange of property that gives rise to passive income. Passive income also includes amounts derived by reason of the
temporary investment of funds, including those raised in a public offering. In determining whether a non-U. S. corporation is a PFIC, a
proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by
value) is taken into account. The tests for determining PFIC status are applied annually, and it is difficult to make accurate projections
of future income and assets which are relevant to this determination. In addition, our PFIC status may depend in part on the market value
of the Ordinary Shares. Accordingly, there can be no assurance that we currently are not or will not become a PFIC in the future. If we
are a PFIC in any taxable year during which a U. S. taxpayer holds the Ordinary Shares, such U. S. taxpayer would be subject to certain
adverse U. S. federal income tax rules. In particular, if the U. S. taxpayer did not make an election to treat us as a “qualified
electing fund”, or QEF, or make a “mark-to-market” election, then “excess distributions” to the U. S. taxpayer,
and any gain realized on the sale or other disposition of the Ordinary Shares by the U. S. taxpayer: (1) would be allocated ratably over
the