Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
13. Income Taxes:
In September 2026, the Company purchased approximately $23,000 of transferable federal Clean Fuel Production tax credits generated during the 2025 tax year under Section 45Z of the Internal Revenue Code of 1986, as amended (“Clean Fuel Production Tax Credits”) for a cash purchase price of approximately $21,200. The resulting discount of approximately $1,800 is recognized as a reduction of income tax expense as the related credits are utilized.
The effective income tax rate for the three months ended September 30, 2026 was 19.9%, compared to 99.1% for the three months ended September 30, 2025. The effective income tax rate for the nine months ended September 30, 2026 was 26.2%, compared to 117.2% for the nine months ended September 30, 2025. The Company’s effective income tax rates for the three and nine months ended September 30, 2026 and 2025, respectively, fluctuated primarily due to the revaluation of deferred tax assets and liabilities and the change in valuation allowance as a result of the Advanced Materials & Catalysts divestiture in the prior year.
The tax expense for the three and nine months ended September 30, 2025 includes a $15,620 discrete tax expense connected to intraperiod allocation associated with the revaluation of deferred tax assets and liabilities, a valuation allowance against the Company’s Kansas Investment Tax Credits, and an increase in valuation allowance against a portion of the Company’s state net operating losses. In accordance with intraperiod allocation rules, this discrete tax expense is reflected in the tax provision for continuing operations.
The difference between the U.S. federal statutory income tax rate and the Company’s effective income tax rate for the nine months ended September 30, 2026 was primarily attributable to state and local taxes, a stock compensation tax shortfall, non-deductible transaction costs associated with the Calabrian Acquisition, a benefit from the remeasurement of state deferred tax assets and liabilities resulting from changes in the Company's expected state apportionment profile following the Calabrian Acquisition, and the partial recognition of the purchase discount on the Clean Fuel Production Tax Credits.
The difference between the U.S. federal statutory income tax rate and the Company’s effective income tax rate for the nine months ended September 30, 2025 was mainly due to state and local taxes, a shortfall tax expense related to stock compensation, tax benefit related to state tax refunds associated with prior tax years, discrete tax expense related to intraperiod allocation associated with the revaluation of deferred tax assets and liabilities, a valuation allowance against the Company’s Kansas Investment Tax Credits, and a valuation allowance against a portion of the Company’s state net operating losses.
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