Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 325

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 325
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918 | ) |     | $ | 7,613 |   |

F-56

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements The income tax expense for the year ended December 31, 2024 resulted in a negative effective tax rate of 19.6% which is below the 21% statutory federal income tax rate. This is primarily due to the fact that approximately 123% of the Company’s loss before income tax is within pass-through entities not subject to income taxes at the Company level, unfavorable permanent adjustments including goodwill impairment, partially offset by a reduction in the Company’s deferred state tax rate. The income tax benefit for the year ended December 31, 2023 resulted in an effective tax rate of 14.5%, which is below the 21% statutory federal income tax rate. This is primarily due to the fact that approximately 74% of the Company’s loss before income tax is within pass-through entities not subject to income taxes at the Company level, partially offset by favorable return-to-provisionadjustments in the tax paying C corporations. The income tax expense for the year ended December 31, 2022 resulted in a negative effective tax rate of 10.3%, which is below the 21% statutory federal income tax rate. This is primarily due to the fact that approximately 122% of the Company’s loss before income tax is within pass-through entities not subject to income taxes at the Company level and to taxable income in the tax paying C corporations. A reconciliation of the statutory federal income tax rate of 21% to the Company’s effective tax rate is presented below:

|                                                     |     | Year Ended December 31, 
 2024                    |         |    |     | 2023 |         |   |     | 2022 |         |    |
|:----------------------------------------------------|:----|:------------------------|:--------|:---|:----|:-----|--------:|:--|:----|:-----|:--------|:---|
| Income tax at the statutory federal income tax rate |     |                         | 21.0%   |    |     |      |   21.0% |   |     |      | 21.0%   |    |
| Pass-through income not subject to income tax       |     |                         | (48.7)% |    |     |      | (15.5)% |   |     |      | (25.6)% |