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Note 14 - Income Taxes
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
14.
     Income Taxes
 
The Company's effective tax rate is approximately
5.8%
and
0.7%
for the
nine
-month period ended
September 30, 2020
and
2019,
respectively. The Company's effective tax rate differs from the statutory federal tax rate of
21%
for the
nine
month period ended
September 30, 2020
primarily due to a full valuation allowance recorded on our United States, China and Italy deferred tax assets since we cannot anticipate when or if we will have sufficient taxable income to utilize the deferred tax assets in the future. Further, our effective tax rate differs from the statutory federal tax rate due to state taxes, differences between U.S. and foreign tax rates, foreign losses incurred with
no
related tax benefit, non-deductible commissions, and non-deductible meals and entertainment expenses for the
nine
month periods ended
September 30, 2020
and
2019.
 
Fuel Tech had
no
unrecognized tax benefits as of
September 30, 2020
and
December 
31,
2019.
 
On
March 27, 2020,
President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (H.R.
748
) (the “CARES Act”). Among the changes to the U.S. federal income tax rules, the Cares Act restored net operating loss carryback rules that were eliminated by
2017
Tax Cuts and Jobs Act, restored
100
percent bonus depreciation for qualified improvement property, modified the limit on the deduction for net interest expense and accelerated the timeframe for refunds of AMT credits.   At this time we do
not
anticipate a material impact to the Company's current or deferred income taxes as a result of the CARES Act.  We will continue to evaluate the effects of the CARES Act as additional legislative guidance become available.