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Note 15 - Income Taxes
3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
15.
     Income Taxes
 
The Company's effective tax rate is approximately
0%
and
5%
for the
three
-month periods ended
March 31, 2021
and
2020
, respectively.  The Company's effective tax rate differs from the statutory federal tax rate of
21%
for the
three
month period ended
March 31, 2021
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
three
month periods ended
March 31, 2021
and
2020
.  Income generated in the
three
months ended
March 31, 2021
attributed to the gain on forgiveness of the Paycheck Protection Plan loan is tax exempt. 
 
Fuel Tech had
no
unrecognized tax benefits as of
March 31, 2021
and
December 31, 2020
.