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Note 7 - Provision (Benefit) for Income Taxes
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
7
 
)
PROVISION/(BENEFIT) FOR INCOME TAXES
 
The following table summarizes the provision/(benefit) for income taxes.
 
 
   
Three months ended June 30,
   
Six months ended June 30,
 
   
2017
   
2016
   
2017
   
2016
 
Provision/(benefit) for income taxes
  $
48
    $
(6,917
)   $
1,645
    $
(8,789
)
Effective tax rate
   
5.4
%    
(94.7
%)    
28.0
%    
(54.9
%)
 
 
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.