Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
| Income Taxes |
INCOME TAXES
The provision for income taxes was $1,060 and $766 for the three months ended June 30, 2017 and 2016, respectively. The provision for income taxes was $415 and $1,007 for the six months ended June 30, 2017 and 2016, respectively. The estimated 2017 effective tax rate was 15.1% for the three months ended June 30, 2017 compared to a 26.7% estimated annual effective tax rate for the three months ended June 30, 2016. The estimated 2017 effective tax rate was 9.0% for the six months ended June 30, 2017 compared to a 26.4% estimated annual effective tax rate for the six months ended June 30, 2016.
The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2017 were the effects of investment tax credits to which the Company is entitled based on its investment in plants in which ownership is retained, as well as the effects of revisions of prior year estimates of the tax deduction under Internal Revenue Code Section 179D. The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2016 were the effects of the tax deduction under Internal Revenue Code Section 179D and production tax credits to which the Company is entitled from owned plants.
The investment tax credits, production tax credits and other energy related tax incentives to which the Company may be entitled fluctuate from year to year based on the cost of the renewable energy plants the Company places or expects to place in service and production levels at company owned facilities in that year. The Section 179D deduction expired December 31, 2016.
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
At June 30, 2017 and December 31, 2016, the Company had approximately $600 and $600, respectively, of total gross unrecognized tax benefits. At June 30, 2017 and December 31, 2016, the Company had approximately $20 and $20, respectively, of total gross unrecognized tax benefits (net of the federal benefit on state amounts) representing the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.
The adoption of ASU No. 2016-09, Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting, which was adopted in the first quarter of fiscal 2017, had no material impact on the benefit for income taxes for the six months ended June 30, 2017 because no material excess tax benefits related to share-based awards were recognized during that period.
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