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INCOME TAXES
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
The effective tax rate for the three months ended September 30, 2025 and 2024 was 23.5% and 25.3%, respectively. For the three months ended September 30, 2025, the effective tax rate reflects net discrete income tax benefits of $7.8 million primarily resulting from the exercise of stock-based awards. These discrete income tax benefits reduced the effective tax rate in the current period by approximately 3.2 percentage points. For the three months ended September 30, 2024, the effective tax rate does not reflect any material discrete income tax benefits.
The effective tax rate for the nine months ended September 30, 2025 and 2024 was 24.4% and 25.4%, respectively. For the nine months ended September 30, 2025 and 2024, the effective tax rate reflects net discrete income tax benefits of $12.8 million and $8.6 million, respectively, primarily resulting from the exercise and vesting of stock-based awards. These discrete income tax benefits reduced the effective tax rates in the respective periods by approximately 2.0 and 1.2 percentage points.
During the first nine months of 2025, the Company purchased $93.8 million of transferable clean energy tax credits. The Company used $91.1 million of these tax credits to reduce its 2024 U.S. federal income tax liability and $2.7 million to reduce its estimated 2025 U.S. federal income tax liability. The Company has taken appropriate measures to mitigate the transferee liability associated with these tax credits, including but not limited to conducting due diligence to confirm the eligibility of the underlying projects or production, as applicable, for the tax credits and the eligibility of the tax credits for transfer, obtaining appropriate contractual protections from the sellers, and obtaining tax credit insurance and/or seller guarantees.
The effective tax rate, excluding discrete income tax benefits, differs from the federal statutory income tax rate due primarily to state income taxes, nondeductible expenses, and the tax impact of international operations.
There have been no material adjustments to the Company's assessment of uncertain tax positions since December 31, 2024.
On July 4, 2025, the U.S. enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) into law. The OBBBA makes permanent certain expiring provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”) and modifies other provisions of the TCJA and the Inflation Reduction Act. The OBBBA contains various effective dates with certain provisions effective in 2025 and others effective in 2026 and beyond. Accounting Standards Codification 740, Income Taxes, requires the impact of changes in tax laws (or rates) to be recognized in the financial statements as of the date of enactment, which is when all legislative steps necessary for the bill to become law are complete. The Company has evaluated the provisions of the OBBBA, and concluded there is no material impact on the Company’s 2025 annual effective tax rate. The Company, however, has adjusted certain of its deferred tax assets and liabilities as of September 30, 2025 to reflect the impact of the OBBBA.