Income Taxes

3 Months Ended

Sep. 30, 2021

Income Taxes

Income Taxes

(11)  Income Taxes

On March 11, 2021, the President signed the American Rescue Plan Act, 2021 into law. The bill complements the provisions set forth in the Coronavirus Aid, Relief, and the Economic Security Act (the “CARES Act”) and the Consolidated Appropriations Act, 2021, which were signed into law on March 27, 2020, and December 27, 2020, respectively. The provisions of the legislation do not have a significant impact on the Company’s income taxes.

The Company’s quarterly provision for income taxes is based on the annual effective rate method. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, and other discrete items in the interim period in which they occur.

The Company’s effective tax rate was (290.3)% and (205.2)% for the three months ended September 30, 2020 and 2021, respectively. The Company’s effective tax rate for the three months ended September 30, 2020 and September 30, 2021 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-

based compensation and research and development tax credits, partially offset by an increase to the valuation allowance for the period ended September 30, 2021.