Income Taxes |
9 Months Ended | ||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
| Income Taxes | INCOME TAXES
We recorded a provision (benefit) for income taxes of $3,657 and $(1,192) for the three months ended September 30, 2022 and 2021, respectively. The estimated effective annualized tax rate impacted by the period discrete items is a provision of 11.6% for the three months ended September 30, 2022, compared to a benefit of 6.2% of estimated effective annualized tax rate for the three months ended September 30, 2021.
We recorded a provision (benefit) for income taxes of $10,896 and $(883) for the nine months ended September 30, 2022 and 2021, respectively. The estimated effective annualized tax rate impacted by the period discrete items is 12.0% for the nine months ended September 30, 2022, compared to a benefit of 1.8% of estimated effective annualized tax rate for the nine months ended September 30, 2021.
The principal reasons for the difference between the statutory rate and the estimated annual effective rate for 2022 were the effects of investment tax credits which we are entitled from solar plants placed into service or are forecasted to be placed into service during 2022, state taxes, and the tax deductions related to the Section 179D deduction.
The principal reasons for the difference between the statutory rate and the estimated annual effective rate for 2021 were the effects of investment tax credits which we are entitled from solar plants placed into service or are forecasted placed into service
during 2021, the tax deductions related to the Section 179D deduction, the deduction of compensation expense associated with certain employee stock options, and tax basis adjustments on certain partnership flip transactions.
Under GAAP accounting rules deferred taxes are shown on a net basis in the condensed consolidated financial statements based on taxing jurisdiction. Under the guidance, we have recorded long term deferred tax assets and deferred tax liabilities based on the underlying jurisdiction in the accompanying condensed consolidated balance sheets.
The following table sets forth the total amounts of gross unrecognized tax benefits:
The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods was $440 at September 30, 2022 and December 31, 2021 (net of the federal benefit on state amounts).
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