Note 7 - Provision (Benefit) for Income Taxes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] |
The following table summarizes the provision/(benefit) for income taxes.
The effective tax rate for the three months and six months ended June 30, 2017, reflects our expected tax rate on reported operating income before income tax. Our effective tax rate in the three and six months ended June 30, 2017, reflects the elimination of certain tax credits and incentives which expired December 31, 2016 and were not in effect for 2017. The effective tax rate for the three and six months ended June 30, 2016, reflects our expected tax rate on reported operating earnings before income tax. Our effective tax rate in the three and six months ended June 30, 2016, reflects the positive effect of the reinstatement of certain tax credits and incentives for 2016. In 2016, these tax credits and incentives formed a large proportion of FutureFuel’s net income. This increase in proportion combined with the income tax treatment of the credits and incentives reduced FutureFuel’s effective income tax rate in 2016. In addition, during the second quarter of 2016, FutureFuel booked a tax benefit related to the reversal of a state’s treatment of the taxability of the tax credits and incentives. Unrecognized tax benefits totaled $2,056 and $2,056 at June 30, 2017 and December 31, 2016, respectively.FutureFuel records interest and penalties, net, as a component of income tax expense. At June 30, 2017 and December 31, 2016, FutureFuel recorded $230 and $193, respectively, in accruals for interest or tax penalties. |