v3.25.2
Income Taxes
 9 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income taxes were an expense of $733,000 and $3.6 million during the three and nine months ended June 30, 2025, respectively, and a benefit of $1.4 million and an expense of $378,000 during the three and nine months ended June 30, 2024, respectively. The effective income tax rate was 15.3% and 18.3% for the three and nine months ended June 30, 2025, respectively, and 21.5% and 12.0% for the three and nine months ended June 30, 2024, respectively. The disproportionate tax rates during the nine months ended June 30, 2024, were caused by the decrease in the then-expected annual effective tax rate. Our effective income tax rate is affected by state taxes, permanent differences, and tax credits, including the FICA tip credit, for both years, as presented below (dollars in thousands).
Three Months Ended June 30, 2025Three Months Ended June 30, 2024
Amount%Amount%
Federal statutory income tax expense (benefit)$1,006 21.0 %$(1,395)21.0 %
State income taxes, net of federal benefit145 3.0 %(214)3.2 %
Permanent differences83 1.7 %22 (0.3)%
Tax credits(509)(10.6)%152 (2.3)%
Other8 0.2 %9 (0.1)%
Total income tax expense (benefit)$733 15.3 %$(1,426)21.5 %
8. Income Taxes—continued
Nine Months Ended June 30, 2025Nine Months Ended June 30, 2024
Amount%Amount%
Federal statutory income tax expense$4,193 21.0 %$662 21.0 %
State income taxes, net of federal benefit561 2.8 %135 4.3 %
Permanent differences210 1.1 %100 3.2 %
Tax credits(1,488)(7.5)%(528)(16.8)%
Other172 0.9 %9 0.3 %
Total income tax expense$3,648 18.3 %$378 12.0 %
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states. Fiscal year ended September 30, 2022, and subsequent years remain open to federal tax examination. The Company ordinarily goes through various federal and state reviews and examinations for various tax matters.
On July 4, 2025, President Trump signed into law the legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14" (the "Act") and commonly referred to as the One Big Beautiful Bill Act. Among other things, the Act extends certain expiring, and in some cases expired, provisions of the 2017 Tax Cuts and Jobs Act. The Act also adjusted a number of provisions affecting businesses that were subject to sunsets, phase-outs, or phase-ins that would have taken effect in the absence of action by Congress or that have already taken effect. The Company has reviewed the changes from the Act and determined that any impact would be immaterial.