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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
 U.S. and foreign components of income from continuing operations, before income taxes and equity in income (losses) of investees consisted of:
 
Year Ended December 31,
202420232022
(Dollars in thousands)
U.S $36,984 $53,984 $23,709 
Non-U.S. (foreign) 78,393 85,101 71,900 
Total income from continuing operations, before income taxes and equity in losses
$115,377 $139,085 $95,609 
The components of the provision (benefit) for income taxes, net are as follows:
 
Year Ended December 31,
202420232022
(Dollars in thousands)
Current:
Federal $961 $672 $641 
State 1,478 (1,806)2,227 
Foreign 22,075 35,379 29,370 
Total current income tax expense $24,514 $34,245 $32,238 
Deferred:
Federal (44,992)(12,780)(17,179)
State (5,893)6,041 2,649 
Foreign 10,082 (21,523)(2,966)
Total deferred tax provision (benefit) (40,803)(28,262)(17,496)
Total Income tax provision $(16,289)$5,983 $14,742 
 
Reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:
Year Ended December 31,
202420232022
U.S. federal statutory tax rate 21.0 %21.0 %21.0 %
Foreign tax credits (3.6)%(3.8)%(3.8)%
Withholding tax (0.3)1.0 0.2 
Valuation allowance - U.S. — — (9.3)
State income tax, net of federal benefit (0.7)2.4 5.3 
Uncertain tax positions (2.1)1.5 0.9 
Foreign tax rate change— (5.7)— 
Effect of foreign income tax, net 15.6 0.4 6.2 
Production tax credits (4.4)— (4.0)
Investment tax credits(42.9)(14.0)— 
Tax on global intangible low-tax income 5.1 4.1 4.8 
Noncontrolling interest(1.2)(1.0)(2.2)
Other, net(0.6)(1.6)(3.7)
Effective tax rate (14.1)%4.3 %15.4 %
The net deferred tax assets and liabilities consist of the following:
December 31,
20242023
(Dollars in thousands)
Deferred tax assets (liabilities):
Net foreign deferred taxes, primarily depreciation $(36,955)$(27,623)
Depreciation (38,831)40,993 
Intangible drilling costs (19,307)(17,543)
Net operating loss carryforward - U.S. 22,760 24,822 
Tax monetization transaction (53,950)(125,462)
Right-of-use assets(7,317)(5,218)
Lease liabilities5,949 5,105 
Production and investment tax credits
118,461 109,556 
Foreign tax credits 30,919 33,412 
Withholding tax (19,308)(20,437)
Basis difference in partnership interest (13,586)(12,448)
Excess business interest18,122 6,162 
Sale and leaseback transaction54,480 58,608 
Other assets14,512 12,404 
Accrued liabilities and other 12,071 6,361 
Total88,020 88,692 
Less - valuation allowance (2,700)(2,870)
Total, net$85,320 $85,822 
 The following table presents a reconciliation of the beginning and ending valuation allowance:
 
Year Ended December 31,
20242023
(Dollars in thousands)
Balance at beginning of the year $2,870 $2,473 
Additions to valuation allowance 0 479 
Release of valuation allowance (170)(82)
Balance at end of the year $2,700 $2,870 
 At December 31, 2024, the Company had U.S. federal net operating loss (“NOL”) carryforwards of approximately $32.9 million, all of which was generated before 2018 and expires by 2038.
At December 31, 2024, the Company had PTCs in the amount of $109.7 million . These PTCs are available for a 20-year period and begin to expire in 2026. At December 31, 2024, the Company had ITCs in the amount of $8.8 million. These ITCs are available for a 22-year period, and begin to expire in 2046. At December 31, 2024, the Company had U.S. foreign tax credits (“FTCs”) in the amount of $30.9 million. These FTCs are available for a 10-year period, and begin to expire in 2027.
At December 31, 2024, the Company had state NOL carryforwards of approximately $244.5 million, $239.8 million which expire between 2025 and 2044 and $4.7 million are available to be carried forward for an indefinite period. At December 31, 2024, the Company had no remaining state tax credits.
The Company has recorded deferred tax assets for net operating losses, foreign tax credits, and production tax credits.  Realization of the deferred tax assets and tax credits is dependent on generating sufficient taxable income in appropriate jurisdictions prior to expiration of the NOL carryforwards and tax credits. Based upon available evidence of the Company’s ability to generate additional taxable income in the future and historical losses in prior years, a valuation allowance in the amount of $2.7 million and $2.9 million is recorded against the U.S. deferred tax assets as of December 31, 2024 and 2023, respectively, as it is more likely than not that the deferred tax assets will not be realized. The overall decrease in the valuation allowance of $0.2 million is due to the ability to utilize attributes that previously have been fully valued. The Company is maintaining a valuation allowance of $2.7 million against a portion of its state NOLs and capital loss carryforward that are expected to expire before they can be utilized in future periods.
  On April 24, 2018, the Company acquired 100% of stock of USG for approximately $110 million. Under the acquisition method of accounting, the Company recorded a net deferred tax asset of $1.7 million comprised primarily of federal and state NOLs netted against deferred tax liabilities for partnership basis differences and fixed assets. The total amount of acquired federal and state NOLs, which are subject to limitations under Section 382, were $113.9 million and $49.9 million, respectively.  A valuation allowance of $1.8 million has been recorded against such acquired state NOLs, as it is more likely than not that the deferred tax asset will not be realized.
The FASB released guidance Staff Q&A, Topic 740, No. 5, that states a company can make an accounting policy election to either recognize deferred taxes related to GILTI or to provide for the GILTI tax expense in the year the tax is incurred as a period cost.  The Company has elected to treat any GILTI inclusions as a period cost. We have elected and applied the tax law ordering approach when considering GILTI as part of our valuation allowance.
 The Company uses the flow-through method to account for investment tax credit earned on eligible battery storage projects. Under this method, the investment tax credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in the asset basis.
The following table presents the deferred taxes on the balance sheet as of the dates indicated: 
Year Ended December 31,
20242023
(Dollars in thousands)
Non-current deferred tax assets $153,936 $152,570 
Non-current deferred tax liabilities (68,616)(66,748)
Non-current deferred tax assets, net 85,320 85,822 
Uncertain tax benefit offset (1)
(95)(95)
$85,225 $85,727 
 (1) The non-current deferred tax asset has been reduced by the uncertain tax benefit of $0.1 million in accordance with ASU 2013-11, Income Taxes.
 At December 31, 2024, the Company is no longer indefinitely reinvested with respect to the earnings of its foreign subsidiaries due to forecasted changes in cash needs and the impact of U.S. tax reform. The Company has accrued withholding taxes that would be owed upon future distributions of such earnings. Accordingly, as of December 31, 2024, the Company has accrued $15.0 million of foreign withholding taxes on future distributions of foreign earnings.
Uncertain Tax Positions
 The Company is subject to income taxes in the United States (federal and state) and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company's tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite evidence supporting the position. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve positions and changes to reserves that are considered probable.
 At December 31, 2024 and 2023, there are $6.3 million and $8.7 million of unrecognized tax benefits, respectively, that if recognized would reduce the effective tax rate. Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax provision in the consolidated statements of operations and comprehensive income.
 A reconciliation of the Company's unrecognized tax benefits is as follows:
Year Ended December 31,
20242023
(Dollars in thousands)
Balance at beginning of year $6,930 $5,300 
Additions based on tax positions taken in prior years 1,260 395 
Additions based on tax positions taken in the current year 431 1,376 
Reduction based on tax positions taken in prior years (3,964)(141)
Reduction based on tax positions taken in the current year — — 
Balance at end of year $4,657 $6,930 
  The Company and its U.S. subsidiaries file consolidated income tax returns for federal and state (where applicable) purposes. As of December 31, 2024, the Company has not been subject to U.S. federal or state income tax examinations.
The Company remains open to examination by the Internal Revenue Service for the years 2006-2023 and by local state jurisdictions for the years 2010-2023. These examinations may lead to ordinary course adjustments or proposed adjustments to the Company's taxes or the Company's net operating losses with respect to years under examination as well as subsequent periods.
 The Company’s foreign subsidiaries remain open to examination by the local income tax authorities in the following countries for the years indicated:
Israel
2023
–
2024
Kenya
2019
–
2024
Guatemala
2020
–
2024
Honduras
2018
–
2024
Guadeloupe
2021
–
2024
 Management believes that the liability for unrecognized tax benefits is adequate for all open tax years based on its assessment of many factors, including among others, past experience and interpretations of local income tax regulations.
This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. As a result, it is possible that federal, state and foreign tax examinations will result in assessments in future periods. To the extent any such assessments occur, the Company will adjust its liability for unrecognized tax benefits. The Company is not able to reasonably estimate the amount of unrecognized tax benefits that will be reduced within the next twelve months.
 Tax Benefits in the United States
 On August 16, 2022, the Inflation Reduction Act was signed into law in the United States. The Company believes that the construction and operations of its geothermal power plants, recovered energy-based power plants, battery energy storage systems and solar PV will benefit in the future from the IRA and enhance the economic feasibility of projects in the United States. PTCs can be generated from 3.00 cents per kWh, once the Wages & Apprenticeship rules are met, and if bonus credit requirements are met the credit could rise up to 3.63 cents per kWh. ITCs can be earned on investments from 30.0%, once the Wages & Apprenticeship rules are met, and if bonus credit requirements are met the credit could rise up to 50.0%. Battery Energy Storage Systems are eligible for ITC for projects placed-in-service after December 31, 2022. In addition, the Company can now monetize PTCs and ITCs earned by transferring the credits to a third-party without having to enter into a tax equity transaction.
  Income Taxes Related to Foreign Operations
 Guadeloupe - The Company’s operations in Guadeloupe are taxed at a maximum rate of 26.5% in 2021, and 25% in 2022 and beyond.
Guatemala — The enacted tax rate is 25%. Orzunil, a wholly owned subsidiary, was granted a benefit under a law which promotes development of renewable power sources. The law allows Orzunil to reduce the investment made in its geothermal power plant from income tax payable, which currently reduces the effective tax rate to zero. Ortitlan pays income tax of 7% on its Electricity revenues.
 Honduras - The Company’s operations in Honduras are exempt from income taxes for the first ten years starting at the commercial operation date of the power plant, which was in September 2017.
Israel — The Company’s operations in Israel through its wholly owned Israeli subsidiary, Ormat Systems Ltd. (“Ormat Systems”), are taxed at a reduced corporate tax rate under the “Benefited Enterprise” tax regime of the Encouragement of Capital Investments Law, 1959 (the “Investment Law”), with respect to two of its investment programs. In January 2011, new legislation amending the Investment Law by adding, inter alia, the Preferred Enterprise Regime was enacted. Under the Preferred Enterprise Regime, a uniform reduced corporate tax rate would apply to all qualified income of certain industrial companies, as opposed to the Investment Law incentives that are limited to income from a “Benefited Enterprise” during their benefits period. According to the amendment, the uniform tax rate applicable to the zone where the production facilities of Ormat Systems are located is 16% for qualifying income.
Kenya - In June 2023, the President of Kenya signed into law the 2023 Finance Act ("Finance Act"). The Finance Act, among several other changes, reduced the statutory corporate income tax rate for Branches from 37.5% to 30%, introduced a Branch Profits tax based on the change in Net Assets and limits interest deductions to 30% of EBITDA. The Finance Act also reduced the corporate tax rate on Branches from 37.5% to 30.0%. The Company implemented this change and recorded an associated benefit during 2023.
Tax Investigation in Kenya
On April 23, 2024, the Company's branch in Kenya received a Letter of Preliminary Investigation Findings (the “Letter”) from the Kenya Revenue Authority (“KRA”) relating to tax years 2017 to 2022. The Letter set forth a demand for approximately $79.0 million before any potential interest and penalties. On July 8, 2024, the KRA informed the Company that its investigation was concluded and closed and that the initial demand for $79.0 million would be reduced to zero, and as a result, no additional taxes, interest or penalties would be due.