INCOME TAXES |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES As of September 30, 2026 and December 31, 2025, AleAnna, Inc. held 60.94% of the economic interest in HoldCo, which is treated as a partnership for U.S. federal income tax purposes. As a partnership, HoldCo generally is not subject to U.S. federal income tax under current U.S. tax laws as its net taxable income (loss) and any related tax credits are passed through to its members and included in their tax returns, even though such net taxable income (loss) or tax credits may not have actually been distributed. AleAnna, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes, with respect to its distributive share of the net taxable income (loss) and any related tax credits of HoldCo. AleAnna Energy was historically and remains a disregarded subsidiary of a partnership for U.S. Federal income tax purposes with each partner being separately taxed on its share of taxable income or loss. As a direct result of the Business Combination, HoldCo became the sole member of AleAnna Energy. As such, HoldCo’s distributive share of any net taxable income or loss and any related tax credits of AleAnna Energy are then distributed to the Company. For the days and periods prior to the closing of the Business Combination, AleAnna Energy was a disregarded subsidiary of an entity treated as a partnership. As such, its net taxable loss and any related tax credits were allocated to its members. The Company applies an estimated annual effective rate to interim period pre-tax income to calculate the income tax provision for the quarter in accordance with the principal method prescribed by the accounting guidance established for computing income taxes in interim periods. The Company recognized $3.3 million and $2.0 million in income tax expense during the three and nine months ended September 30, 2026 compared to an income tax expense of $0.6 million and $0.6 million during the same respective periods of 2025, primarily related to temporary differences of its Italian subsidiaries. Income tax expense was $3.3 million and $2.0 million for the three and nine months ended September 30, 2026, respectively, representing effective tax rates of 34.9% and 13.2%. The effective tax rates differed from the U.S. statutory tax rate of 21%, primarily due to the tax effects of income earned by the Italian subsidiaries, partially offset by the utilization of net operating loss carryforwards, and a valuation allowance against the deferred tax assets arising from the U.S. entities pretax losses.
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