Income Taxes

3 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (“IRA 2022”). The IRA 2022, among other tax provisions, imposes a 15% corporate alternative minimum tax on corporations with book financial statement income in excess of $1.0 billion, effective for tax years beginning after December 31, 2022. The IRA 2022 also establishes a 1% excise tax on stock repurchases made by publicly traded U.S. corporations, effective for stock repurchases in excess of an annual limit of $1.0 million after December 31, 2022. The IRA 2022 did not impact the Company’s current year tax provision or the Company’s financial statements.

The income tax provision consists of the following for the three months ended June 30, 2024 and 2023:

	Three Months Ended
	June 30
	2024		2023
Current income tax expense:
Federal	$	11,905	$	-
State		20,066		32,818
Total current income tax expense		31,971		32,818
Deferred income tax expense:
Federal		74,615		88,683
State		-		-
Total deferred income tax expense		74,615		88,683
Total income tax expense:	$	106,586	$	121,501

Federal income tax for the three months ended June 30, 2024 was $86,520. Federal income tax for the three months ended June 30, 2023 was $88,683.

A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the three months ended June 30 follows:

	2024			2023
Income tax expense	$	106,586		$	121,501
Effective income tax rate (1)		26.8	%		20.7	%

(1) The federal statutory rate was 21% for three months ended June 30, 2024 and 2023.

Total income tax expense from continuing operations for the three months ended June 30, 2024 and 2023 differed from amounts computed by applying the U.S. federal statutory tax rate to pre-tax income primarily due to state income taxes, net of federal benefit, and the impact of permanent differences between book and taxable income.