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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
A summary of the provision for income taxes is as follows:
 Fiscal Year Ended
December 31,
 202420232022
Federal
Current$911 $— $— 
Deferred8,652 8,155 15,645 
9,563 8,155 15,645 
State
Current(297)4,385 5,362 
Deferred(1,754)(894)880 
(2,051)3,491 6,242 
Provision for income taxes$7,512 $11,646 $21,887 
On a periodic basis, we reassess the valuation allowance on our deferred income tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. In the fourth quarter of fiscal year 2024, we assessed the valuation allowance and considered positive evidence, including significant cumulative consolidated income over the three years ended December 31, 2024, revenue growth and expectations of future profitability, and negative evidence, including the impact of significant risks and uncertainties in the business and restrictions on tax loss utilization in certain state jurisdictions. We also considered the impact of acquisitions, including of Whitetail Disposal, Inc. and its integration into the company. After assessing both the positive evidence and the negative evidence, we determined it is more likely than not that certain state deferred tax assets would be realized in the future, and therefore released a portion of the valuation allowance as of December 31, 2024, resulting in a benefit from income taxes of $3,166. As of December 31, 2024, we maintained a valuation allowance of $8,456 primarily related to certain state net operating losses.
In assessing the realizability of carryforwards and other deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. The change in the valuation allowance for fiscal year 2024 was a decrease of $2,530. In determining the need for a valuation allowance, we have assessed the available means of recovering deferred tax assets, including the ability to carryback net operating losses, the existence of reversing temporary differences, and available sources of future taxable income. We have also considered the
ability to implement certain strategies, such as a potential sale of assets that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets.
The differences in the provision for income taxes and the amounts determined by applying the Federal statutory rate to income before income taxes are as follows:
 Fiscal Year Ended
December 31,
 202420232022
Federal statutory rate21 %21 %21 %
Tax at statutory rate$4,420 $7,779 $15,743 
State income taxes, net of federal benefit(1,660)620 4,203 
Change in valuation allowance68 1,675 459 
Federal effect of change in state valuation allowance— (312)282 
Expired tax attributes
497 — — 
Non-deductible officer compensation1,172 996 1,300 
Other non-deductible expenses
2,931 809 782 
Deductible stock awards103 (963)(627)
Tax credits63 (60)(83)
Reversal of disproportionate tax effects in other comprehensive (loss) income— 938 — 
Other, net(82)164 (172)
Provision for income taxes$7,512 $11,646 $21,887 
Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. A summary of deferred tax assets and liabilities is as follows:
 December 31,
 20242023
Deferred tax assets:
Accrued expenses and reserves$60,319 $49,339 
Net operating loss carryforwards26,544 35,571 
General business and state tax credit carryforwards3,900 6,862 
Interest expense limitation10,089 6,690 
Stock awards3,256 2,690 
Unrealized loss on swaps— 375 
Other1,024 1,567 
Total deferred tax assets105,132 103,094 
Less: valuation allowance(8,456)(10,986)
Total deferred tax assets after valuation allowance96,676 92,108 
Deferred tax liabilities:
Tax over book depreciation of property and equipment(71,467)(58,927)
Amortization of intangibles(42,961)(22,540)
Unrealized gain on swaps(1,337)— 
Other— (44)
Total deferred tax liabilities(115,765)(81,511)
Net deferred tax (liability) asset
$(19,089)$10,597 
The net deferred tax liability at December 31, 2024 is reflected on the consolidated balance sheet as a long-term deferred federal and state tax liability of $(19,089).
As of December 31, 2024, we have, for federal income tax purposes, net operating loss carryforwards of approximately $83,211, which do not expire. We have state net operating loss carryforwards of approximately $125,708 that expire in the fiscal years ending December 31, 2025 through 2044 or that do not expire in certain jurisdictions. In addition, we have $3,900 general business credit carryforwards which expire in the fiscal years ending December 31, 2025 through 2044 and zero state credit carryforwards. Sections 382 and 383 of the Internal Revenue Code can limit the amount of net operating loss and credit carryforwards which may be used in a tax year in the event of certain stock ownership changes.
The provisions of FASB ASC 740-10-25-5 prescribe the minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Additionally, FASB ASC 740-10-25-5 provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under FASB ASC 740-10-25-5, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued are reflected as a reduction of the overall income tax provision. As of December 31, 2024 and 2023, we did not have any uncertain tax positions.
We are subject to U.S. federal income tax, as well as the income tax of multiple state jurisdictions. For federal tax purposes, income tax returns from years ending 2021 through 2024 are open for assessment. Tax years 1999 through 2020 are open for examination to the extent of any NOLs or credits that have been carried forward from those years.