Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 227

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1A
Chunk 227
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flation Reduction Act of 2022, among other things, imposes a 1% excise tax on the fair market value of stock repurchased by a publicly
traded domestic (i.e., United States) corporation (and certain non-U.S. corporations treated as a “surrogate foreign corporations”)
beginning in 2023, with certain exceptions (the “Excise Tax”). The amount of the Excise Tax is generally 1% of the fair market
value of the shares of the stock repurchased at the time of the repurchase and will apply to stock repurchases occurring in 2023 and
beyond. The U.S. Department of the Treasury has been given authority to provide regulations and other guidance to carry out, and prevent
the abuse or avoidance of, the excise tax; however, only limited guidance has been issued to date.

As
an entity incorporated as a Cayman Islands exempted company, the Excise Tax is not expected to apply to redemptions of our Ordinary Shares
(absent any regulations and other additional guidance that may be issued in the future with retroactive effect).

However,
we may be subject to the Excise Tax if, in connection with an initial business combination and prior to certain redemptions, we domesticate
into the United States or if we are considered a surrogate foreign corporation under the Internal Revenue Code (the “Code”).
We will be considered as a surrogate foreign corporation if, after our acquisition of a United States corporation, at least 60% of our
stock, by vote or value, is held by former shareholders of the United States corporation by reason of their holding stock in such United
States corporation. If we acquire a domestic corporation, or engage in a transaction in which a United States corporation becomes our
parent or our affiliate, and because our securities are expected to trade on Nasdaq following the date of the Registration Statement,
we may be, or become, a “covered corporation” within the meaning of the Inflation Reduction Act, and while not free from
doubt, it is possible that the Excise Tax will apply to redemptions of our Ordinary Shares in connection with an initial business combination
after we become such a “covered corporation” to the extent such redemptions are treated as repurchases for purposes of the
Inflation Reduction Act (other than, pursuant to recently issued guidance from the U.S. Department of the Treasury, redemptions in complete
liquidation of the company). In all cases, the extent