Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 275

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 275
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-assets                           |     |              |  (5,818 | ) |     |      |  (6,463 | ) |
| Property and equipment depreciation           |     |              |  (2,423 | ) |     |      |  (1,352 | ) |
| Other                                         |     |              |     (26 | ) |     |      |       — |   |
| Total deferred tax liabilities                |     |              | (71,726 | ) |     |      | (81,741 | ) |
| Net deferred tax liabilities                  |     | $            | (48,672 | ) |     | $    | (63,182 | ) |

The Company acquired additional tax attributes from prior acquisitions. As of December 31, 2023, the Company had $7.5 million of Federal net operating losses, $17.2 million of State net operating losses and $0.3 million of Federal and State R&D credits. The Federal net operating losses can be carried forward indefinitely. The R&D credits have a 20-yearcarryforward and, if not utilized, will begin to expire in 2044. Many of the jurisdictions in which the Company has State net operating losses have an indefinite carryforward period; however, $0.1 million of State net operating losses could begin to expire as early as 2035 if not utilized. Pursuant to Section 382 of the Internal Revenue Code, utilization of Federal net operating loss carryforwards are subject to annual limitations due to the ownership changes of prior acquisitions. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. Based on performing Section 382 studies for prior acquisitions, the Company does not expect any permanent expiration of net operating losses. As of both December 31, 2023 and 2022, the Company has gross unrecognized tax benefits of $2.7 million, all of which would affect the effective income tax rate if recognized in future periods. The Company does not anticipate significant changes to any uncertain tax positions within 12 months of the reporting period ended December 31, 2023. The Company’s policy is to classify interest and penalties as income tax expense. The Company has no interest or penalty accruals associated with uncertain tax benefits. F-46

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C