Company: HVIIR
Filing Date: 2025-01-13
Form Type: S-1/A
Source: 0001493152-25-001958
Chunk: 248

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-01-13
Form: S-1/A
Chunk 248
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 any “excess distribution” made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the Class A ordinary shares during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder’s holding period for the Class A ordinary shares).

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Under these rules:

| ● | the                                                                                        
 U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s 
 holding period for the Class A ordinary shares or Share Rights ;                           |

| ● | the                                                                                        
 amount allocated to the U.S. Holder’s taxable year in which the U.S. Holder recognized     
 the gain or received the excess distribution, or to the period in the U.S. Holder’s        
 holding period before the first day of our first taxable year in which we are a PFIC, will 
 be taxed as ordinary income;                                                               |

| ● | the                                                                                                
 amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included      
 in its holding period will be taxed at the highest tax rate in effect for that year and applicable 
 to the U.S. Holder; and                                                                            |

| ● | an                                                                                         
 additional tax equal to the interest charge generally applicable to underpayments of tax   
 will be imposed on the U.S. Holder with respect to the tax attributable to each such other 
 taxable year of the U.S. Holder.                                                           |

In general, if we are determined to be a PFIC, a U.S. Holder may avoid the PFIC tax consequences described above in respect of our Class A ordinary shares (but likely not our Share Rights) by making a timely and valid QEF election (if eligible to do so) to include in income its pro rata share of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends. A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.

The treatment of the Share Rights to acquire our Class A ordinary shares