Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

The details of income tax expense are as follows:


	Years Ended September 30
	2020		2019
Current income taxes:
Federal	$	1,841,124	$	1,698,215
State	342,233		268,488
Total current income taxes	2,183,357		1,966,703
Deferred income taxes:
Federal	644,682		272,079
State	477,621		411,949
Total deferred income taxes	1,122,303		684,028

Total income tax expense	$	3,305,660	$	2,650,731

Reconciliation of Income Tax Expense Based on Federal Statutory Rate

Income tax expense for the years ended September 30, 2020 and 2019 differed from amounts computed by applying the U.S. federal income tax rate to earnings before income taxes due to the following:


	Years Ended September 30
	2020			2019
Income before income taxes	$	13,870,194		$	11,349,143
Corporate federal income tax rate	21.0		%	21.0		%
Income tax expense computed at the federal statutory rate	$	2,912,741		$	2,383,320
State income taxes, net of federal income tax benefit	647,685			537,545

Net amortization of excess deferred taxes on regulated operations	(162,228)			(212,896)
Tax benefit recognized on stock compensation	(114,984)			(96,499)
Other, net	22,446			39,261
Total income tax expense	$	3,305,660		$	2,650,731

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are as follows:


	September 30
	2020		2019
Deferred tax assets:
Allowance for uncollectibles	$	180,986	$	28,503
Accrued pension and postretirement medical benefits	651,356		782,592
Regulatory effect of change in federal income tax rate	2,814,525		2,867,383
Accrued vacation	140,635		150,882
Over-recovery of gas costs	—		23,979
Cost of gas held in storage	604,962		590,495

Deferred compensation	992,605		803,979
Interest rate swaps	572,343		230,204
Rate refund	—		130,063
Other	97,564		261,125
Total gross deferred tax assets	6,054,976		5,869,205
Deferred tax liabilities:
Utility plant	18,310,474		18,132,022

MVP investment	1,693,075		705,193
Other	25,189		10,513
Total gross deferred tax liabilities	20,028,738		18,847,728
Net deferred tax liability	$	13,973,762	$	12,978,523