Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.5.0.2
Income Taxes
6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The provision (benefit) for income taxes was $766 and $1,746 for the three months ended June 30, 2016 and 2015, respectively. The provision (benefit) for income taxes was $1,007 and $(1,156) for the six months ended June 30, 2016 and 2015, respectively. The estimated 2016 effective tax rate was 26.7% for the three months ended June 30, 2016 compared to a 46.7% estimated annual effective tax rate for the three months ended June 30, 2015. The estimated 2016 effective tax rate was 26.4% for the six months ended June 30, 2016 compared to a 34.5% estimated annual effective tax rate for the six months ended June 30, 2015.
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 investment tax credits and production tax credits to which the Company is entitled from owned plants. The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2015 were the effects of the valuation allowance required for the expected Canada losses as well as the investment tax credits and production tax credits to which the Company is entitled to from owned plants.
The investment tax credits to which the Company is entitled to fluctuate from year to year based on the cost of the renewable energy plants the Company places or expects to place in service in that year. In addition, the tax deduction under Internal Revenue Code Section 179D expired as of December 31, 2014 and and was retroactively reinstated in December of 2015. The current expiration date for the 179D deduction is December 31, 2016.
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
 
Gross Unrecognized Tax Benefits
Balance, December 31, 2015
$
2,200

Additions for prior year tax positions

Settlements with tax authorities
(84
)
Reductions of prior year tax positions

Balance, June 30, 2016
$
2,116


At June 30, 2016 and December 31, 2015, the Company had approximately $2,116 and $2,200, respectively, of total gross unrecognized tax benefits. At June 30, 2016 and December 31, 2015, the Company had approximately $700 and $800, 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.