INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) and Effective Income Tax Rate Reconciliation

Total income taxes applicable to operations differ from the tax that would have resulted by applying the statutory Federal income tax rate to pre-tax income for SJI and SJG for the following reasons (in thousands): 

	2020		2019		2018
SJI (includes SJG and all other consolidated subsidiaries):
Tax at Statutory Rate	$	37,791	$	20,633	$	3,877
Increase (Decrease) Resulting from:
State Income Taxes	7,896		7,813		622
State Valuation Allowance	7,392		—		—
ESOP Dividend	(627)		(697)		(791)
Tax Reform Adjustments	—		—		(588)
AFUDC	(1,901)		(1,546)		(1,835)
Amortization of Excess Deferred Taxes	(6,174)		(3,475)		(893)

Investment and Other Tax Credits	(23,439)		(953)		(93)
Other - Net	1,726		(714)		262
Income Taxes:
Continuing Operations	22,664		21,061		561
Discontinued Operations	(66)		(70)		(62)
Total Income Tax Expense	$	22,598	$	20,991	$	499
SJG:
Tax at Statutory Rate	30,111		25,245		22,966
Increase (Decrease) Resulting from:
State Income Taxes	8,965		9,542		5,220
ESOP Dividend	(533)		(592)		(712)
AFUDC	(821)		(591)		(1,126)
Amortization of Excess Deferred Taxes	(3,154)		—		—
Other - Net	756		(782)		65
Total Income Tax Expense	35,324		32,822		26,413
The provision for Income Taxes is comprised of the following (in thousands):
SJI (includes SJG and all other consolidated subsidiaries):	2020		2019		2018
Current:
Federal	$	—	$	—	$	(13,790)
State	823		(482)		3,959
Total Current	823		(482)		(9,831)
Deferred:
Federal	3,312		11,171		13,564
State	18,529		10,372		(3,172)
Total Deferred	21,841		21,543		10,392
Income Taxes:
Continuing Operations	22,664		21,061		561
Discontinued Operations	(66)		(70)		(62)
Total Income Tax Expense (Benefit)	$	22,598	$	20,991	$	499
SJG:
Current:
Federal	$	—	$	—	$	(12,766)
State	—		—		—
Total Current	—		—		(12,766)
Deferred:
Federal	23,976		20,744		32,571
State	11,348		12,078		6,608
Total Deferred	35,324		32,822		39,179
Total Income Tax Expense	$	35,324	$	32,822	$	26,413

Schedule of Deferred Tax Assets and Liabilities

The net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes resulted in the following net deferred tax assets and liabilities for SJI and SJG at December 31 (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	2020		2019
Deferred Tax Assets:
Net Operating Loss Carryforward	$	141,252	$	122,197
Investment and Other Tax Credits	243,827		215,033
Conservation Incentive Program	—		1,991
Deferred State Tax	24,338		18,514
Income Taxes Recoverable Through Rates	92,739		103,922
Pension & Other Post Retirement Benefits	34,558		28,579
Deferred Revenues	4,530		5,324
Deferred Regulatory Costs	—		11,895
Provision for Uncollectibles	8,763		4,749
Other	17,691		16,705
Total Deferred Tax Asset	567,698		528,909
Valuation Allowance	(7,392)		—
Total Deferred Tax Asset, net of Valuation Allowance	$	560,306	$	528,909
Deferred Tax Liabilities:
Book versus Tax Basis of Property	$	512,357	$	479,765
Deferred Gas Costs - Net	13,737		23,728
Derivatives / Unrealized Gain	1,215		1,098
Environmental Remediation	50,262		53,511
Deferred Regulatory Costs	13,360		—
Budget Billing - Customer Accounts	5,248		5,400
Deferred Pension & Other Post Retirement Benefits	33,307		31,416
Conservation Incentive Program	6,178		—
Equity In Loss Of Affiliated Companies	16,019		1,801
Goodwill Amortization	28,013		16,304
Other	8,977		8,052

Total Deferred Tax Liability	$	688,673	$	621,075
Deferred Tax Liability - Net	$	128,367	$	92,166
SJG:
Deferred Tax Assets:
Net Operating Loss and Tax Credits	$	35,301	$	55,250
Deferred State Tax	22,918		20,352
Provision for Uncollectibles	4,887		3,939
Conservation Incentive Program	—		1,991
Income Taxes Recoverable Through Rates	58,573		68,280
Pension & Other Post Retirement Benefits	20,857		17,461
Deferred Revenues	4,739		5,525
Other	2,813		2,486
Total Deferred Tax Assets	$	150,088	$	175,284
Deferred Tax Liabilities:
Book Versus Tax Basis of Property	$	435,764	$	418,059
Deferred Fuel Costs - Net	10,189		20,227
Environmental Remediation	46,857		47,270
Deferred Regulatory Costs	15,087		9,609
Deferred Pension & Other Post Retirement Benefits	21,398		20,396
Budget Billing - Customer Accounts	5,248		5,400
Section 461 Prepayments	1,469		1,445
Conservation Incentive Program	6,178		—
Other	11,507		10,515
Total Deferred Tax Liabilities	$	553,697	$	532,921
Deferred Tax Liability - Net	$	403,609	$	357,637

Summary of Operating Loss Carryforward

As of December 31, 2020, SJI has the following federal and state net operating loss carryforwards (in thousands):

	Net Operating Loss Carryforwards
Expire in:	Federal		State
2031	$	—	$	9,653
2032	14,740		3,108
2033	57,363		18,557
2034	106,899		12,779
2035	51,308		22,472
2036	72,199		147,081
2037	75,606		96,697
2038	—		127,846
2039	—		130,397
2040	—		71,188
Indefinite	70,973		—
	$	449,088	$	639,778

Summary of Tax Credit Carryforwards

As of December 31, 2020, SJI has the following investment tax credit carryforwards (in thousands):

Expire in:	Investment Tax Credit Carryforward
2030	$	11,628
2031	25,664
2032	32,031
2033	45,606
2034	37,699
2035	45,005
2036	11,744
2037	636
2038	93
2039	—
2040	23,858
	$	233,964

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, is as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	2020		2019		2018
Balance at January 1,	$	1,566	$	1,147	$	1,445
Increase as a result of tax positions taken in prior years	806		419		—
Decrease in prior year positions	—		—		(298)
Balance at December 31,	$	2,372	$	1,566	$	1,147
SJG:
Balance at January 1,	$	1,104	$	1,063	$	1,361
Increase as a result of tax position taken in prior years	25		41		—
Decrease in prior year positions	—		—		(298)
Balance at December 31,	$	1,129	$	1,104	$	1,063