Company: HVIIR
Filing Date: 2025-12-23
Form Type: S-4
Source: 0001493152-25-029121
Chunk: 246

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-12-23
Form: S-4
Chunk 246
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EF Election (as defined below) for the first taxable 
 year in which the U.S. Holder owned such HVII Class A Ordinary Shares or in which HVII was  
 a PFIC, whichever is later (or a QEF Election along with a purging election), or (b) an MTM 
 Election (as defined below) with respect to such HVII Class A Ordinary Shares.              |

The tax on any such recognized gain would be imposed based on a complex set of computational rules designed to offset the tax deferral with respect to the undistributed earnings of HVII. Under these rules (the “Excess Distributions Regime”):

| ● | the                                                                                             
 U.S. Holder’s gain will be allocated ratably over the U.S. Holder’s holding period              
 for such U.S. Holder’s HVII Class A Ordinary Shares;                                            |
| ● | the                                                                                             
 amount of gain allocated to the U.S. Holder’s taxable year in which the U.S. Holder             
 recognized the gain, or to the period in the U.S. Holder’s holding period before the            
 first day of the first taxable year in which HVII was a PFIC, will be taxed as ordinary income; |
| ● | the                                                                                             
 amount of gain allocated to each other taxable year (or portion thereof) of the U.S. Holder     
 and included in such U.S. Holder’s holding period would be taxed at the highest tax             
 rate in effect for that year and applicable to the U.S. Holder; and                             |
| ● | an                                                                                              
 additional tax equal to the interest charge generally applicable to underpayments of tax        
 will be imposed on the U.S. Holder in respect of the tax attributable to each such other        
 taxable year or portion thereof (described in the third bullet above) of such U.S. Holder.      |

In addition, the proposed Treasury Regulations provide coordinating rules with Section 367(b) of the Code, whereby, if the gain recognition rule of the proposed Treasury Regulations under Section 1291(f) of the Code applies applied to a disposition of PFIC stock that results from a transfer with respect to which Section 367(b) of the Code requires the U.S. Holder to recognize gain or include an amount in income as a deemed dividend deemed paid by HVII, the gain realized on the transfer is taxable as an excess distribution under the excess distribution regime, and the excess, if any, of the amount to be included in income under Section 367(b) of the Code over the