Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes    

The income tax rate for the three months ended September 30, 2023 and 2022 was (2.1)% and 0.0%, respectively, and for the nine months ended September 30, 2023 and 2022 was 0.5% and 0.0%, respectively. The differences between the actual consolidated effective income tax rate and the U.S. federal statutory rate were primarily attributable to the goodwill impairment charge, the allocation of losses on noncontrolling interests and income tax expense related to the valuation allowance. There was no tax impact of the goodwill impairment as it is not deductible for tax purposes.

The Company sells solar energy systems to investment Funds. As the investment Funds are consolidated by the Company, the gain on the sale of the assets has been eliminated in the consolidated financial statements, however gains on sale are recognized for tax purposes and the tax effects of which, both current and deferred, are included in the Company’s income tax provision.