Company: MSEX
Filing Date: 2025-07-29
Form Type: 424B5
Source: 0001104659-25-071727
Chunk: 35

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-29
Form: 424B5
Chunk 35
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 or takes place after withdrawal from or termination of
the Plan and, in the case of a fractional share, when the U.S. participant receives a cash payment for a fraction of a share credited
to his or her account. The amount of the taxable gain or loss will be the difference between (i) the amount that the U.S. participant
realizes on or receives for the Common Stock or fraction of a share and (ii) the adjusted tax basis the U.S. participant has in
the Common Stock or fraction of a share. Such gain or loss generally will be treated as long-term capital gain or loss if the U.S. Participant’s
holding period is greater than one year at the time of the sale, exchange or other disposition, or short-term capital gain or loss otherwise.
A U.S. Participant who is an individual may be eligible for preferential maximum rates of U.S. federal income tax in respect of long-term
capital gains. A U.S. Participant’s ability to deduct capital losses is subject to certain limitations.

Medicare Contribution Tax on Unearned Income

Certain U.S. participants
who are individuals are subject to an additional 3.8% tax on certain “net investment income” for the relevant taxable year,
including dividend income on stock and net gains from the sale or other disposition of stock, subject to certain limitations. U.S. participants
should consult their tax advisors regarding the applicability and effect, if any, of this tax on their ownership and disposition of Common
Stock.

<div align='center'>S-29</div>

Backup Withholding and Administrative Expenses

In general, any dividend
reinvested under the Plan is not subject to United States federal income tax withholding. We or the Plan Agent may be required to deduct
as “backup withholding” (currently at a 24% rate) on all distributions paid or deemed paid to a stockholder, regardless of
whether those distributions are reinvested. Similarly, the Plan Agent may be required to deduct backup withholding from all proceeds
of sales of Common Stock held in a Plan account. A U.S. participant is subject to backup withholding if (1) the U.S. participant
has failed to properly furnish us and the Plan Agent with the U.S. participant’s taxpayer identification number; (2) the Internal
Revenue Service notifies us or the Plan Agent that the identification number furnished by the U.S. participant is incorrect; (3) the
Internal Revenue Service notifies us or the Plan Agent that backup withholding should be