INCOME TAXES

6 Months Ended

Jun. 30, 2016

INCOME TAXES [Text Block]

NOTE 5 – INCOME TAXES

The Company’s estimated effective income tax rate is as follows:

	For the Six Months Ended
	June 30,
	2016		2015
U.S. Federal statutory rate	34.0%		34.0%
Average State and foreign income tax, net of federal tax effect	3.5		3.7
Consolidated tax rate before non-controlling interest	37.5		37.7
Tax effect of non-controlling interests	(37.5	)	(17.7	)
Net effective tax rate	(0.0	)%	20.0%

The provision for income taxes reflects an estimated effective income tax rate attributable to U.S. Geothermal Inc.’s share of income. Our provision for income taxes for the six months ended June 30, 2016, reflects a reported effective tax rate of ( 0.0)% which differs from the statutory federal income tax rate of 34% primarily due to the impact of the non-controlling interest and state income taxes.