Bridge Meadows

PART X, LINE 2:

“Income tax returns filed by each of the entities are subject to examination by the internal revenue service for a period of three years. While no income tax returns are currently being examined by the internal revenue service, tax years since 2020 remain open and subject to examination. Bridge meadows and family homes are exempt from federal and state income taxes under section 501(c)(3) of the internal revenue code and comparable state statutes and did not have any unrelated business income for the year ended december 31, 2024. Due to its tax exempt status, bridge meadows and family homes are not subject to income taxes. Accordingly, these financial statements do not reflect a provision for income taxes and there are no other tax positions which must be considered for disclosure. Bridge meadows is required to file tax returns with the irs and other taxing authorities. The tax credit partnerships and new meadows are taxable entities, however, each of the entities have elected to be treated as a pass-through entity for income tax purposes and, as such, are not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its partners or members on their respective income tax returns. The tax credit partnerships and new meadows' federal tax statuses are based on their legal status as a partnership. Accordingly, the tax credit partnerships and new meadows are not required to take any tax positions in order to qualify as a pass-through entity. Accordingly, these financial statements do not reflect a provision for income taxes and the tax credit partnerships and new meadows have no other tax positions which must be considered for disclosure. The tax credit partnerships and new meadows are required to file and do file tax returns with the internal revenue service and other taxing authorities.”