Note 12 - Income Tax |
3 Months Ended |
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Mar. 31, 2025 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
Note 12 - Income Tax
Our income tax provision during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, adjusted for any discrete items occurring during the relevant interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year and changes in tax law and tax rates. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known, or the tax environment changes.
Our effective tax rate for continuing operations during the
three months ended
March 31, 2025 and
March 31, 2024 was
10.5% and
16.7%, respectively. The primary reason for the difference between the statutory federal income tax rate of
21.0% and our effective income tax rate results from the federal Work Opportunity Tax Credit, which is designed to encourage employers to hire workers from certain targeted groups with higher-than-average unemployment rates. Other differences result from state income taxes, certain non-deductible expenses, and tax effects of stock-based compensation.
We use an intra-period tax allocation to allocate total income tax expense or benefit to the different components of continuing operations and discontinued operations. This allocation uses a with and without methodology to determine income tax expense for discontinued operations. Tax benefit allocated to discontinued operations was
$23 thousand and
$24 thousand for the
three months ended
March 31, 2025 and
March 31, 2024, respectively.
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