Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 9. INCOME TAXES: Quanta’s effective tax rates for the three months ended June 30, 2025 and 2024 were 26.7% and 28.2%. The lower effective tax rate for the three months ended June 30, 2025 was primarily due to the recognition, as a component of Quanta’s annual effective tax rate, of certain tax credits generated during the year ended December 31, 2025. Quanta’s effective tax rates for the six months ended June 30, 2025 and 2024 were 24.6% and 23.2%. The higher effective tax rate for the six months ended June 30, 2025 was primarily due to a lower tax benefit from vested equity incentive awards. This benefit impacted the effective tax rate for the six months ended June 30, 2025 by $14.7 million, compared to $22.4 million for the six months ended June 30, 2024. Quanta regularly evaluates valuation allowances established for deferred tax assets (DTAs) for which future realization is uncertain, including in connection with changes in tax laws. The estimation of required valuation allowances includes estimates of future taxable income. The ultimate realization of DTAs is dependent upon the generation of future taxable income in the jurisdiction of the DTAs during the periods in which those temporary differences become deductible. Quanta considers projected future taxable income and tax planning strategies in making this assessment. If actual future taxable income differs from these estimates, Quanta may not realize DTAs to the extent estimated. As of June 30, 2025, the total amount of unrecognized tax benefits relating to uncertain tax positions was $81.6 million, a net increase of $7.5 million from December 31, 2024, which resulted from positions expected to be taken in 2025. Quanta’s consolidated federal income tax returns for tax years 2017, 2018, and 2021 through 2023 remain open to examination by the IRS, as the applicable statute of limitations periods have not yet expired. Additionally, various state and foreign tax returns filed by Quanta and certain subsidiaries for multiple periods remain under examination by various U.S. state and foreign tax authorities. Quanta does not consider any U.S. state in which it does business to be a major tax jurisdiction. Quanta believes it is reasonably possible that within the next 12 months unrecognized tax benefits may decrease by up to $13.4 million as a result of settlement of these examinations or as a result of the expiration of certain statute of limitations periods. On July 4, 2025, the U.S. government enacted new tax legislation pursuant to Public Law No: 119-21 (also known as One Big Beautiful Bill). Since this legislation was enacted subsequent to June 30, 2025, the impact of any changes resulting from the legislation were not reflected in Quanta’s condensed consolidated financial statements as of and for the three and six months ended June 30, 2025. Quanta is currently evaluating the provisions of the legislation to assess the potential impact on the effective tax rate, deferred tax assets and liabilities, and future cash tax obligations. While Quanta’s preliminary analysis does not indicate a material impact, the ultimate effect will depend on a number of factors, including the issuance of regulatory guidance and further interpretation of the legislation. Quanta will continue to monitor developments and will recognize any required adjustments in the period in which the analysis is complete and the impacts can be quantified with reasonable certainty.
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