Income Taxes |
9 Months Ended | ||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
| Income Taxes | INCOME TAXES The Company recorded a provision for income taxes of $3,100 and $939 for the three months ended September 30, 2020 and 2019, respectively. The Company recorded a provision for income taxes of $597 and $2,000 for the nine months ended September 30, 2020 and 2019, respectively. The estimated effective annualized tax rate impacted by the period discrete items is 14.9% for the three months ended September 30, 2020, compared to a 10.1% of estimated effective annualized tax rate for the three months ended September 30, 2019. The estimated effective annualized tax rate impacted by the period discrete items is 1.8% for the nine months ended September 30, 2020, compared to a 9.2% of estimated effective annualized tax rate for the nine months ended September 30, 2019.
The principal reasons 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, the tax deductions related to the Section 179D deduction, the tax rate benefits associated with net operating loss carryback made possible by the passing of the CARES Act on March 27, 2020 and tax basis adjustments on certain partnership flip transactions. 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 September 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 September 30, 2020, and December 31, 2019.
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