Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | INCOME TAXES The Company recorded a provision for income taxes of $0 and $804 for the three months ended June 30, 2020 and 2019, respectively. The Company recorded a benefit for income taxes of $2,503 and provision for income tax of $1,061 for the six months ended June 30, 2020 and 2019, respectively.The estimated effective annualized tax rate impacted by the period discrete items is (0.0%) of benefit for the three months ended June 30, 2020, compared to a 8.6% of estimated effective annualized tax rate for the three months ended June 30, 2019. The estimated effective annualized tax rate impacted by the period discrete items is (19.3)% of benefit for the six months ended June 30, 2020, compared to a 8.5% of estimated effective annualized tax rate for the six months ended June 30, 2019.
The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2020 were the effects of investment tax credits to which the Company is entitled from solar plants which have been placed into service or are forecasted to be placed into service during 2020. Tax deductions related to Section 179D deduction, tax basis adjustments on certain partnership flip transactions and tax rate benefits associated with net operating loss carryback made possible by the passing of the COVID-19 CARES Act on March 27, 2020. The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2019 were the effects of investment tax credits to which the Company is entitled from solar plants which have been placed into service or were forecasted to be placed into service during 2019.
The investment tax credits and production tax credits 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. As part of the Tax Extender and Disaster Relief Act of 2019, signed into law December 20, 2019, Section 179D was extended through December 31, 2020.
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
At June 30, 2020 and December 31, 2019, the Company had approximately $400 of total gross unrecognized tax benefits. At June 30, 2020 and December 31, 2019, the Company had approximately $80 of total gross unrecognized tax benefits (both 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 Company has presented all deferred tax assets and liabilities as noncurrent, net liabilities on its condensed consolidated balance sheets as of June 30, 2020, and December 31, 2019.
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