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Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The effective tax rate differs from the federal statutory rate as follows:
 
Three Months Ended September 30,
Tax (benefit) expense
2018
2017
Federal statutory rate
21.0
 %
35.0
 %
State income tax (net of federal tax effect) (a)
(6.3
)
(3.4
)
Percentage depletion in excess of cost
(0.5
)
(0.9
)
Accounting for uncertain tax positions adjustment
—

(0.6
)
Noncontrolling interest (b)
(1.3
)
(3.0
)
Tax credits (c)
(5.3
)
(1.6
)
Effective tax rate adjustment (d)
—

3.9

Flow-through adjustments
(1.5
)
(1.6
)
TCJA change in estimate (e)
17.6

—

AFUDC equity
(0.1
)
—

Other tax differences
1.9

1.3

 
25.5
 %
29.1
 %
__________
(a)
Adjustment to the deferred state rate and reduced state tax expense for the quarter.
(b)
The adjustment reflects the noncontrolling interest attributable to the sale in April 2016 of 49.9% of the membership interests of COIPP LLC.
(c)
The tax credits are due to the production tax credits for the Peak View wind farm.
(d)
Adjustment to reflect our projected annual effective tax rate, pursuant to ASC 740-270.
(e)
The TCJA was signed into law on December 22, 2017. In accordance with ASC 740, net deferred tax assets and liabilities were revalued as of December 31, 2017 due to the reduction in the federal income tax rate from 35% to 21%. During the three months ended September 30, 2018, we recorded an additional $5.3 million of tax expense associated with changes in the prior estimated impacts of tax reform on deferred income taxes.

 
 
 
 
Nine Months Ended September 30,
Tax (benefit) expense
2018
2017
Federal statutory rate
21.0
 %
35.0
 %
State income tax (net of federal tax effect)
0.4

0.3

Percentage depletion in excess of cost
(0.4
)
(0.6
)
Accounting for uncertain tax positions adjustment
—

(0.2
)
Noncontrolling interest
(1.1
)
(1.9
)
IRC 172(f) carryback claim (a)
—

(1.0
)
Tax credits (b)
(2.6
)
(1.6
)
Effective tax rate adjustment
—

0.3

Flow-through adjustments
(0.8
)
(1.2
)
TCJA change in estimate (c)
4.3

—

AFUDC equity
(0.1
)
—

Jurisdictional simplification project (d)
(28.1
)
—

Other tax differences
0.7

0.3

 
(6.7
)%
29.4
 %

__________
(a)
During the first quarter of 2017, the Company filed amended income tax returns for the years 2006 through 2008 to carryback specified liability losses in accordance with IRC172(f). As a result of filing the amended returns, the Company’s accrued tax liability interest decreased, certain valuation allowances increased and the previously recorded domestic production activities deduction decreased.
(b)
The tax credits are due to the production tax credits for the Peak View wind farm.
(c)
The TCJA was signed into law on December 22, 2017. In accordance with ASC 740, net deferred tax assets and liabilities were revalued as of December 31, 2017 due to the reduction in the federal income tax rate from 35% to 21%. During the nine months ended September 30, 2018, we recorded an additional $7.5 million of tax expense associated with changes in the prior estimated impacts of tax reform on deferred income taxes.
(d)
Tax benefit from legal restructuring associated with amortizable goodwill as part of jurisdictional simplification.