Income Taxes

6 Months Ended

Jun. 30, 2023

Income Taxes [Abstract]

Income Taxes

‎

(12) Income Taxes:

The following is a reconciliation of the provision for income taxes computed at the federal statutory rate to income taxes computed at the effective rates:

	For the three months ended ‎June 30,				For the six months ended ‎June 30,
	2023		2022		2023		2022
Consolidated tax provision at federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income tax provisions, net of federal
income tax benefit	(32.8)		15.0		57.2		12.0
Changes in certain deferred tax balances	-		1.7		-		1.1
Sec. 162(f) nondeductible penalties	(6.3)		-		-		-
Tax reserve adjustment	-		0.3		(3.8)		0.4
Tax Credit	-		(0.6)		7.6		(0.8)
Sec.162(m) - nondeductible Executive Compensation	(0.2)		2.4		(22.2)		3.2
All other, net	0.1		0.8		(0.5)		0.5
Effective tax rate	(18.2)	%	40.6	%	59.3	%	37.4	%

Frontier considered positive and negative evidence in regard to evaluating certain state deferred tax assets during the second quarter of 2023, including the development of recent years of pre-tax book losses. On the basis of this evaluation, a valuation allowance of $33 million ($26 million net of federal benefit) was recorded as of June 30, 2023.

The Inflation Reduction Act was signed into law on August 16, 2022. The law contains numerous changes to tax laws effective January 1, 2023. The Company evaluated the effects and does not believe the Company will be materially impacted by the Inflation Reduction Act.