Company: BNRG
Filing Date: 2025-06-13
Form Type: POS AM
Source: 0001213900-25-054302
Chunk: 53

Company: Brenmiller Energy Ltd.
Filing Date: 2025-06-13
Form: POS AM
Chunk 53
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 that would
make a non-Israeli citizen or resident an “interested party” in the future.

Tax Benefits for Research and Development

Israeli tax law allows, under
certain conditions, a tax deduction for expenditures, including capital expenditures, for the year in which they are incurred. Expenditures
are deemed related to scientific research and development projects, if:

| ● | The expenditures are approved by the relevant Israeli government ministry, determined by the field of research; |

| ● | The research and development must be for the promotion of the company; and |

| ● | The research and development are carried out by or on behalf of the company seeking such tax deduction. |

The amount of such deductible
expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development
projects. No deduction under these research and development deduction rules is allowed if such deduction is related to an expense invested
in an asset depreciable under the general depreciation rules of the Tax Ordinance. Expenditures not so approved are deductible in equal
amounts over three years.

From time to time, we may
apply the IIA for approval to allow a tax deduction for all research and development expenses during the year incurred. There can be no
assurance that such an application will be accepted.

Encouragement of Capital Investments Law, 5719-1959

The Law for the Encouragement
of Capital Investments, 1959, or the Investment Law, provides certain incentives for capital investments in production facilities (or
other eligible assets) by “Industrial Enterprises” (as defined under the Investment Law). The benefits available under the
Investment Law are subject to the fulfillment of conditions stipulated therein. If a company does not meet these conditions, it may be
required to refund the amount of tax benefits, as adjusted by the Israeli consumer price index, interest, or other monetary penalties.

Taxation of our Shareholders

Under Section 97(b3) of the
Income Tax Ordinance (“ITO”), foreign residents are generally exempted from Israeli capital gains tax upon the sale of securities
acquired by the seller following December 31, 2008, which were issued by an Israeli resident company if the following conditions are met:

| ● | The capital gain is not attributable to a “permanent establishment” in Israel of the foreign resident seller; |

| ● | The securities were not acquired by the foreign resident seller from a relative (as defined under Section 88 of the ITO),