Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

Note 15. Income Taxes

The Company’s current income tax expense was $1.4 million and $12.5 million for the three months ended March 31, 2024 and 2023, respectively. The Company’s deferred income tax benefit was $4.7 million and $259.5 million for the three months ended March 31, 2024 and 2023, respectively. The effective tax rates for the three months ended March 31, 2024 and 2023 were 26.0% and (233.4%), respectively. The item that had the most significant impact on the difference between the statutory U.S. federal income tax rate of 21% and the effective tax rate for the three months ended March 31, 2024 was the weighted state accrual rate. The items that had the most significant impact on the difference between the statutory U.S. federal income tax rate of 21% and the effective tax rate for the three months ended March 31, 2023 was the release of the valuation allowances.

Net deferred tax assets relate to net operating loss carryforwards, interest expense carryforwards, tax credits, and other temporary differences expected to produce tax deductions in future periods. The realization of these assets depends on recognition of sufficient future taxable income in specific federal and state tax jurisdictions in which those temporary differences are deductible. In assessing the need for a valuation allowance on its deferred tax assets, the Company considers whether it is more likely than not that all of its deferred tax assets will be realized. On December 31, 2023, the Company release all of its valuation allowance of $284.9 million, which increased net deferred tax assets as of such date.