Note 9 - Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
9. Income Taxes
The effective income tax rates were 26.9% and 26.4% for the three months ended June 30, 2026 and 2025, respectively. The effective income tax rates were 25.0% and 24.0% for the six months ended June 30, 2026 and 2025, respectively.
For the three months ended June 30, 2026, the difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes, non-deductible compensation and an excess tax expense, partially offset by the use of federal employment tax credits. The Work Opportunity Tax Credit (“WOTC”) is a federal tax credit available to employers for hiring individuals from certain targeted groups. The Company has historically benefited from this credit; however, because the program expired on December 31, 2025, and had not been renewed as of January 1, 2026, the effective income tax rate for the current quarter includes only the benefit associated with employees hired on or before December 31, 2025. For both the three months ended June 30, 2026 and 2025, the effective tax rates were inclusive of an excess tax benefit of 0.0% and 0.1%, respectively. The excess tax expense and tax benefit are discrete items, related to the vesting of equity shares, which requires the Company to recognize the expense or benefit fully in the period. An excess tax expense results if the Company’s cumulative costs of the award recognized exceed the income tax deduction, whereas an excess tax benefit results if the Company’s cumulative costs of the award recognized are less than the income tax deduction. |