Uniti Group Inc.

Note 13. Income Taxes:

On July 4, 2025, H.R.1, also known as the One Big Beautiful Bill Act (the “Act”), was signed into law in the U.S. and contains a broad range of tax reform provisions affecting businesses. We evaluated the Act during the three months ended September 30, 2025. The change in law, specifically to IRC Sec. 163(j), will reduce the amount of interest expense that is disallowed annually and is factored into the company’s assessment of the realizability of its deferred tax assets, including disallowed interest expense carryforward. We expect the Act will change the timing of our cash tax payments in future periods. We will continue to evaluate the impact of the Act as additional guidance becomes available.

In determining our quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on our expected annual income, statutory rates and tax planning opportunities. Significant or unusual items are separately recognized in the quarter in which they occur.

For the three and nine months ended September 30, 2025, we recorded income tax benefits resulting in effective tax rates of(9.1)% and(9.9)%, respectively. The effective tax rates differed from the statutory rate for the three and nine months ended September 30, 2025 primarily due to the nontaxable gain on settlement of preexisting relationships and deferred tax benefits, net of changes in valuation allowance, resulting from the Merger and related transactions, including deferred federal and state income taxes recorded due to a step-up in the tax basis of certain of the Company’s assets following the closing of the Merger, as well as change in valuation allowance recorded against current year income. Following the Merger, the Company no longer operates as a REIT and is therefore subject to U.S. federal, state and local corporate income taxes.

The table below further details the components of the income tax benefits recorded as of:

For the three and nine months ended September 30, 2024, we recorded income tax benefits of$5.9 million and$13.8 million, respectively, resulting in effective tax rates of(94.3)% and(23.9)%, respectively. The provision for income taxes differed from the statutory rate for the three and nine months ended September 30, 2024 primarily due to the benefit of Old Uniti’s REIT status.

During the nine months ended September 30, 2025, we recognized$3.0 million of previously unrecognized tax benefits due to expiration of statute. The Company hasno remaining liability for unrecognized tax benefits as of September 30, 2025.