Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows. | | | | | | | | | | | | | | | | | | | | | | | | (LKE) | | | | | | | | | Three Months | | | | Six Months | | | | 2020 | | 2019 | | 2020 | | 2019 | Federal income tax on Income Before Income Taxes at statutory tax rate - 21% | $ | 21 | | | $ | 23 | | | $ | 56 | | | $ | 56 | | Increase (decrease) due to: | | | | | | | | State income taxes, net of federal income tax benefit | 4 | | | 4 | | | 11 | | | 10 | | | | | | | | | | | | | | | | | | | | | | | | | | Valuation allowance adjustments (a) | — | | | 3 | | | — | | | 3 | | Amortization of excess deferred federal and state income taxes | (6) | | | (6) | | | (13) | | | (12) | | | | | | | | | | Kentucky recycling credit, net of federal income tax expense (a) | — | | | (20) | | | — | | | (20) | | Other | (2) | | | (1) | | | (3) | | | (2) | | Total increase (decrease) | (4) | | | (20) | | | (5) | | | (21) | | Total income tax expense (benefit) | $ | 17 | | | $ | 3 | | | $ | 51 | | | $ | 35 | |
(a)During the second quarter of 2019, LKE recorded a deferred income tax benefit associated with two projects placed into service that prepare a generation waste material for reuse and, as a result, qualify for a Kentucky recycling credit. The applicable credit provides tax benefits for a portion of the equipment costs for major recycling projects in Kentucky. A portion of this amount has been reserved due to insufficient Kentucky taxable income projected at LKE.
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