Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

6.INCOME TAXES

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA contains several revisions to the Internal Revenue Code, including a 15% corporate minimum income tax and a 1% excise tax on corporate stock repurchases in tax years beginning after December 31, 2022. While these tax law changes have no immediate effect on our results of operations and are not expected to have a material adverse effect on our results of operations going forward, we will continue to evaluate its impact as further information becomes available.

The Company’s effective tax rate for the three months ended March 31, 2023 was (55.9)% primarily due to the tax benefit received related to share-based compensation expense in the amount of $0.5 million, as well as the tax benefit associated with the re-measurement of the company's deferred tax liability for changes in state tax rates in the amount of $2.0 million.

The Company's effective tax rate for the three months ended March 31, 2022 was (7.8)% primarily due to the tax benefit received related to share-based compensation expense in the amount of $2.3 million, as well as the tax benefit associated with the re-measurement of the company's deferred tax liability for changes in state tax rates in the amount of $3.3 million.

The Company made income tax payments of $224 thousand and $5 thousand for the three months ended March 31, 2023 and 2022, respectively. The Company received negligible refunds from various states for the three months ended March 31, 2023 and 2022.

As of March 31, 2023, unrecognized tax benefits were materially consistent with the amount as of December 31, 2022. The Company believes its liability for unrecognized tax benefits, excluding interest and penalties, will not significantly change over the following twelve months.