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INCOME TAXES | 12 Months Ended
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Dec. 31, 2023
INCOME TAXES | 12. INCOME TAXES CoreCivic recorded an income tax expense of $28.2 million, $43.0 million, and $138.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Income tax expense during 2021 included $114.2 million primarily resulting from the revaluation of the Company's net deferred tax liabilities due to the completion of all significant actions necessary to revoke its REIT election. No catch-up tax payments or penalties resulted from the revocation of the Company's REIT election. Income tax expense is comprised of the following components (in thousands):
|  | For the Years Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current income tax expense |  |  |  |  |  |  |  |  |
Federal |  | $ | 25,037 |  |  | $ | 25,681 |  |  | $ | 32,137 |
State |  |  | 5,899 |  |  |  | 5,840 |  |  |  | 6,592 |
|  |  | 30,936 |  |  |  | 31,521 |  |  |  | 38,729 |
Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
Federal |  |  | (2,156 | ) |  |  | 11,484 |  |  |  | 86,703 |
State |  |  | (547 | ) |  |  | (23 | ) |  |  | 12,567 |
|  |  | (2,703 | ) |  |  | 11,461 |  |  |  | 99,270 |
Income tax expense |  | $ | 28,233 |  |  | $ | 42,982 |  |  | $ | 137,999 |
Significant components of CoreCivic's deferred tax assets and liabilities as of December 31, 2023 and 2022, are as follows (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Noncurrent deferred tax assets: |  |  |  |  |  |
Asset reserves and liabilities not yet deductible for tax |  | $ | 14,915 |  |  | $ | 8,625 |
Accrued compensation not yet deductible for tax |  |  | 12,419 |  |  |  | 9,913 |
Accrued workers comp liabilities not yet deductible for tax |  |  | 11,333 |  |  |  | 10,976 |
Depreciation |  |  | 8,669 |  |  |  | 8,502 |
ROU lease assets |  |  | 25,282 |  |  |  | 33,226 |
Losses and tax credit carryforwards |  |  | 1,591 |  |  |  | 1,807 |
Intangible assets |  |  | 7,669 |  |  |  | 7,836 |
Other |  |  | 9,010 |  |  |  | 9,954 |
Total noncurrent deferred tax assets |  |  | 90,888 |  |  |  | 90,839 |
Less valuation allowance |  |  | (848 | ) |  |  | (848 | )
Total noncurrent deferred tax assets |  |  | 90,040 |  |  |  | 89,991 |
Noncurrent deferred tax liabilities: |  |  |  |  |  |
Depreciation |  |  | (151,918 | ) |  |  | (148,255 | )
Lease liabilities |  |  | (24,721 | ) |  |  | (32,663 | )
Intangible liabilities |  |  | (7,860 | ) |  |  | (7,557 | )
Other |  |  | (2,456 | ) |  |  | (1,134 | )
Total noncurrent deferred tax liabilities |  |  | (186,955 | ) |  |  | (189,609 | )
Net total noncurrent deferred tax liabilities |  | $ | (96,915 | ) |  | $ | (99,618 | )
A reconciliation of the income tax provision at the statutory income tax rate and the effective tax rate as a percentage of income from continuing operations before income taxes for the years ended December 31, 2023, 2022, and 2021 is as follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Statutory federal rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Revaluation of deferred tax liabilities |  |  | — |  |  |  | — |  |  |  | 132.7 |
State taxes, net of federal tax benefit |  |  | 4.5 |  |  |  | 3.4 |  |  |  | 4.8 |
Permanent differences |  |  | 4.3 |  |  |  | 1.7 |  |  |  | 2.8 |
Tax expense (benefit) of equity-based compensation |  |  | (0.3 | ) |  |  | — |  |  |  | 2.6 |
Other items, net |  |  | — |  |  |  | (0.1 | ) |  |  | (3.6 | )
|  |  | 29.5 | % |  |  | 26.0 | % |  |  | 160.3 | %
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The CARES Act, among other things, incentivized companies to retain employees through an Employee Retention Credit ("ERC"). The ERC compensates employers for wages of employees that were retained and could not perform their job duties at 100% capacity as a result of coronavirus pandemic restrictions. In December 2020, the Consolidated Appropriations Act provided additional funding for the ERC with expanded benefits through June 30, 2021. During the year ended December 31, 2022, the Company recorded an ERC of $7.0 million, which offset operating expenses. The credit was reduced by $1.8 million of federal income tax expense. The Inflation Reduction Act of 2022 (the "Inflation Reduction Act") was signed into law on August 16, 2022. Among other provisions, such act creates an excise tax of 1% on the fair value of net stock repurchases in excess of share issuances made by publicly traded U.S. corporations, effective for repurchases after December 31, 2022. The impact of this excise tax on the Company’s financial position, and/or liquidity, in future periods, will vary based on the level of net stock repurchases in excess of share issuances made by the Company in a given year. The Company has concluded that the excise tax associated with stock repurchases is properly recognized as a component of equity given that it is a direct cost associated with the repurchase of common stock. The excise tax recognized during the year ended December 31, 2023 was estimated to be $0.3 million associated with the repurchase of 3.5 million shares, net of the shares issued for restricted stock plans as permitted by the issuance offset rule under the Inflation Reduction Act. CoreCivic had no liabilities for uncertain tax positions as of December 31, 2023 and 2022. CoreCivic recognizes interest and penalties related to unrecognized tax positions in income tax expense. CoreCivic does not currently anticipate that the total amount of unrecognized tax positions will significantly change in the next twelve months. CoreCivic's U.S. federal income tax returns for tax years 2020 through 2022 remain subject to examination by the Internal Revenue Service ("IRS"). The majority of states in which CoreCivic files income tax returns follow the same statute of limitations as the federal government. Certain states in which CoreCivic files income tax returns have statutes that remain open from 2019.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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