Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The income tax benefit rate for the three months ended June 30, 2025 and 2024 was 25.4% and 4.0%, respectively, and for the six months ended June 30, 2025 and 2024 was 27.0% and 2.4%, respectively. The differences between the actual consolidated effective income tax rate and the U.S. federal statutory rate were primarily attributable to the increased income tax benefit related to ITC (as defined below) transfer proceeds to the Company. The Company sells solar energy systems to Funds. As the Funds are consolidated by the Company, the gain on the sale of the assets has been eliminated in the consolidated financial statements, however gains on sale are recognized for tax purposes and the tax effects of which, both current and deferred, are included in the Company’s income tax provision. The Company enters into investment tax credit (each, an "ITC" and collectively, the "ITCs") transfer agreements with third-party transferees to transfer to such third-parties, for cash, the ITCs generated by certain solar energy systems that have been or will be placed in service. The Company accounts for its share of ITC transfer proceeds under ASC 740, Income Taxes, as a reduction of income tax expense in the consolidated statements of operations during the year in which the credits arise (i.e., the flow-through method) and the tax equity investor’s share is distributed upon receipt. During the three months ended June 30, 2025 and 2024, the Company recognized income tax benefit from ITC transfer proceeds to the Company of $94.9 million and $16.4 million, respectively, and $205.5 million and $18.6 million during the six months ended June 30, 2025 and 2024, respectively.
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