Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Domestic and Foreign Income Taxes
The following table sets forth components of income before income taxes: 
Year Ended December 31,
  2024 2023 2022
Domestic $ 28,256  $ 30,211  $ 98,004 
Foreign 5,684  8,058  7,715 
Income before income taxes $ 33,940  $ 38,269  $ 105,719 
Income Tax Provision (Benefit)
The components of the provision (benefit) for income taxes were as follows: 
Year Ended December 31,
  2024 2023 2022
Current income tax provision (benefit):          
Federal $ 1,246  $ 34  $ (722)
State 805  372  733 
Foreign 2,414  1,255  1,202 
Total current 4,465  1,661  1,213 
Deferred income tax (benefit) provision:
Federal (28,552) (22,677) 2,528 
State 4,265  (5,657) 2,300 
Foreign (178) 1,038  1,129 
Total deferred (24,465) (27,296) 5,957 
Total income tax (benefit) provision $ (20,000) $ (25,635) $ 7,170 
Deferred Income Tax Assets and Liabilities
Deferred tax assets and liabilities consisted of the following:
December 31,
  2024 2023
Deferred income tax assets:      
Compensation accruals $ 5,622  $ 4,137 
Reserves 8,009  5,906 
Sale-leasebacks and other accruals 39,231  49,300 
Net operating losses 9,882  28,565 
Interest limitation 16,706  8,273 
Energy efficiency 138,647  82,827 
Deferred revenue 2,402  2,114 
Gross deferred income tax assets 220,499  181,122 
Valuation allowance (4,015) (3,704)
Total deferred income tax assets $ 216,484  $ 177,418 
Deferred income tax liabilities:
Depreciation $ (148,217) $ (145,880)
Deferred effect of derivative liability (5,606) (2,166)
Outside basis difference (6,759) (6,599)
Interest rate swaps (1,602) (841)
Total deferred income tax liabilities (162,184) (155,486)
Deferred income tax assets (liabilities), net $ 54,300  $ 21,932 
Summary of Valuation Allowance
Our valuation allowance related to the following items:
December 31,
2024 2023
Foreign net operating loss (1)
$ 4,013  $ 3,702 
State net operating loss at one of our subsidiaries (2)
2  2 
Total valuation allowance $ 4,015  $ 3,704 
(1) It is more likely than not that we will not generate sufficient taxable income at the foreign subsidiary level to utilize the net operating loss.
(2) It is more likely than not that we will not generate sufficient taxable income at the subsidiary level to utilize the net operating loss.
Summary of Operating Loss Carryforwards
As of December 31, 2024, we had the following tax loss and credit carryforwards to offset taxable income in prior and future years:
Amount Expiration Period
Federal net operating loss carryforwards $ —  Indefinite
State net operating loss carryforwards 72,865   Various
Canadian net operating loss carryforwards 20,922  2028 through 2043
Ireland net operating loss carryforwards 2,110  Indefinite
Italy net operating loss carryforwards 2,970  Indefinite
Spain net operating loss carryforwards 2,463  Indefinite
Other foreign country net operating loss carryforwards 127  2030
Total tax loss carryforwards $ 101,457 
Federal Energy Investment and Production tax credit carryforward $ 114,839 
2030 through 2043
Summary of Tax Credit Carryforwards
As of December 31, 2024, we had the following tax loss and credit carryforwards to offset taxable income in prior and future years:
Amount Expiration Period
Federal net operating loss carryforwards $ —  Indefinite
State net operating loss carryforwards 72,865   Various
Canadian net operating loss carryforwards 20,922  2028 through 2043
Ireland net operating loss carryforwards 2,110  Indefinite
Italy net operating loss carryforwards 2,970  Indefinite
Spain net operating loss carryforwards 2,463  Indefinite
Other foreign country net operating loss carryforwards 127  2030
Total tax loss carryforwards $ 101,457 
Federal Energy Investment and Production tax credit carryforward $ 114,839 
2030 through 2043
Reconciliation of Effective Tax Rates
The following is a reconciliation of the effective tax rates:
Year Ended December 31,
  2024   2023   2022
Income before (benefit) provision for income taxes $ 33,940    $ 38,269  $ 105,719 
Federal statutory tax expense $ 7,128    $ 8,036  $ 22,201 
State income taxes, net of federal benefit 2,345    (774) 3,844 
Net state impact of deferred rate change 2,919    (3,213) (575)
Nondeductible expenses 1,182    667  2,198 
Impact of reserve for uncertain tax positions (265) (200) 59 
Stock-based compensation expense 1,240    4  353 
Energy efficiency preferences (38,929)   (30,359) (21,410)
Foreign items and rate differential 2,629    458  37 
State tax adjustment —  (66) — 
Redeemable non-controlling interests 729  (227) (411)
Valuation allowance 311  81  (159)
Miscellaneous 711    (42) 1,033 
Total income tax (benefit) provision $ (20,000)   $ (25,635)   $ 7,170 
Effective tax rate:          
Federal statutory rate expense 21.0  % 21.0  % 21.0  %
State income taxes, net of federal benefit 6.9  % (2.0) % 3.6  %
Net state impact of deferred rate change 8.6  % (8.4) % (0.5) %
Nondeductible expenses 3.5  % 1.7  % 2.1  %
Impact of reserve for uncertain tax positions (0.8) % (0.5) % 0.1  %
Stock-based compensation expense 3.7  % —  % 0.3  %
Energy efficiency preferences (114.7) % (79.3) % (20.3) %
Foreign items and rate differential 7.7  % 1.2  % —  %
State tax adjustment —  % (0.2) % —  %
Redeemable non-controlling interests 2.1  % (0.6) % (0.4) %
Valuation allowance 0.9  % 0.2  % (0.2) %
Miscellaneous 2.2  % (0.1) % 1.1  %
Effective tax rate (58.9) % (67.0) % 6.8  %
Unrecognized Tax Benefits
The following table provides a reconciliation of gross unrecognized tax benefits which are included in other liabilities within the consolidated balance sheets:
Year Ended December 31,
  2024   2023
Balance, beginning of year $ 800  $ 900 
Additions for current year tax positions 104  100 
Reductions of prior year tax positions —  (200)
Balance, end of year $ 904  $ 800