Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.23.1
Income Taxes
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
We recorded a benefit for income taxes of $503 and expense of $2,307 for the three months ended March 31, 2023 and 2022, respectively. The estimated effective annualized tax rate impacted by the period discrete items is a benefit of 47.7% for the three months ended March 31, 2023, compared to an expense of 10.7% of estimated effective annualized tax rate for the three months ended March 31, 2022.
The principal reasons for the difference between the statutory rate and the estimated annual effective rate for 2023 were the effects of investment tax credits which we are entitled from solar and storage plants placed into service or are forecasted to be placed into service during 2023, tax deductions related to the Section 179D deduction, and foreign earnings and profits taxed in the United States.
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:
Gross Unrecognized
Tax Benefits
Balance, December 31, 2022 $ 900 
Balance, March 31, 2023 $ 900 
The amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods was $450 at March 31, 2023 and December 31, 2022 (net of the federal benefit on state amounts).