Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 305

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 305
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 (5,608 | ) |     |   |  (7,299 | ) |     |   |  (319 | ) |
| State                                |     |                         |  (8,096 | ) |     |   |  (6,037 | ) |     |   | 4,369 |   |
| Total deferred tax (benefit) expense |     |                         | (13,704 | ) |     |   | (13,336 | ) |     |   | 4,050 |   |
| Income tax expense (benefit)         |     | $                       |   4,521 |   |     | $ |  (7,918 | ) |     | $ | 7,613 |   |

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    |
|:----------------------------------------------------|:----|:------------------------|:----|:--------|:----|:--------|
|