Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Income tax expense was $5.2 million and $5.8 million for the three months ended September 30, 2026 and 2025, respectively. Income tax expense was $12.6 million and $13.9 million for the nine months ended September 30, 2026 and 2025, respectively. The effective consolidated income tax rates were 11% for both the three months ended September 30, 2026 and 2025, and 12% and 14% for the nine months ended September 30, 2026 and 2025, respectively. The lower effective tax rate for the nine months ended September 30, 2026 was primarily due to higher flow through tax benefits. H2O America had unrecognized tax benefits, before the impact of deductions of state taxes, excluding interest and penalties, of $4.8 million and $4.1 million as of September 30, 2026 and December 31, 2025, respectively. On July 4, 2025, Public Law No. 119-21, referred to as the One Big Beautiful Bill Act (“OBBBA”), was signed into law. The OBBBA contains several changes to corporate taxation including the extension of key provisions of the 2017 Tax Cuts and Jobs Act. The legislation has multiple effective dates, with certain provisions which were effective in 2025 and others are phased in through tax year 2027. The legislation may be subject to further clarification and the issuance of interpretive guidance. The impact of the tax legislation was not material to the provision for income taxes and deferred tax balances for the three and nine months ended September 30, 2026.
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