Income Tax

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Tax

Income Tax

On July 4, 2025, the U.S. enacted significant tax legislation under H.R. 1, the One Big Beautiful Bill Act (“OBBB”). The OBBB, among other tax provisions, (i) restores section 168(k) 100 percent bonus depreciation for property acquired and placed in service after January 19, 2025, (ii) restores immediate expensing of domestic research and development expenditures for tax years after December 31, 2024, (iii) restores an EBITDA-based section 163(j) calculation for tax years after December 31, 2024, and (iv) allows for the deduction of intangible drilling costs in computing adjusted financial statement income under the Corporate Alternative Minimum Tax for tax years after December 31, 2025.

As this legislation was enacted after June 30, 2025, its effects are not reflected in the Company’s provision for income taxes as of that date. The Company is currently evaluating the impact of the new legislation. While the enactment of the OBBB is not expected to result in a material change to the Company’s total income tax expense, it is expected to have a material impact on the allocation between current and deferred taxes. Specifically, the reinstatement of 100 percent bonus depreciation and immediate expensing of domestic research and development costs are expected to significantly reduce current tax expense, with a corresponding increase in deferred tax expense, beginning in future reporting periods.