Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 84

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 84
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 Service (“ IRS”) may require, including a PFIC Annual Information Statement, in order
to enable such U. S. Holder to make and maintain a “qualified electing fund” election, but there can be no assurance that
HVII will timely provide such required information, and such election would be unavailable with respect to HVII’s share rights
in all cases. HVII urges U. S. investors to consult their tax advisors regarding the possible application of the PFIC rules. For a more
detailed discussion of the material tax consequences of PFIC classification to U. S. Holders, see the section of HVII’s final prospectus
filed in connection with its initial public offering entitled “ Taxation - Material United States Federal Income Tax Considerations - U. S.
Holders - Passive Foreign Investment Company Rules.”

A
1% U. S. federal excise tax on stock buybacks could be imposed on redemptions of HVII’s shares if it were to become a “covered
corporation” in the future.

The
Inflation Reduction Act of 2022, among other things, generally imposes a 1% U. S. federal excise tax (the “ Excise Tax”) on
certain repurchases of stock by “covered corporations” (which include publicly traded domestic (i. e., U. S.) corporations
and certain domestic subsidiaries of publicly traded foreign (i. e., non-U. S.) corporations). The Excise Tax is imposed on the repurchasing
corporation itself, not its stockholders from which the stock is repurchased. The amount of the Excise Tax is generally 1% of the fair
market value of the stock repurchased at the time of the repurchase. However, for purposes of calculating the Excise Tax, repurchasing
corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases
during the same taxable year. In addition, certain exceptions apply to the Excise Tax. The U. S. Department of the Treasury (the “ Treasury”)
has authority to provide regulations and other guidance to carry out, and prevent the abuse or avoidance of, the Excise Tax. On December
27, 2022, the Treasury issued a notice that provides interim operating rules for the Excise Tax, including rules governing the calculation
and reporting of the Excise Tax. The Treasury issued proposed regulations on April 12, 2024