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INCOME TAXES | 12 Months Ended
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Dec. 31, 2024
INCOME TAXES | 11. INCOME TAXES CoreCivic recorded an income tax expense of $23.1 million, $28.2 million, and $43.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. Income tax expense is comprised of the following components (in thousands):
|  | For the Years Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current income tax expense |  |  |  |  |  |  |  |  |
Federal |  | $ | 26,621 |  |  | $ | 25,037 |  |  | $ | 25,681 |
State |  |  | 4,182 |  |  |  | 5,899 |  |  |  | 5,840 |
|  |  | 30,803 |  |  |  | 30,936 |  |  |  | 31,521 |
Deferred income tax expense (benefit) |  |  |  |  |  |  |  |  |
Federal |  |  | (7,100 | ) |  |  | (2,156 | ) |  |  | 11,484 |
State |  |  | (608 | ) |  |  | (547 | ) |  |  | (23 | )
|  |  | (7,708 | ) |  |  | (2,703 | ) |  |  | 11,461 |
Income tax expense |  | $ | 23,095 |  |  | $ | 28,233 |  |  | $ | 42,982 |
Significant components of CoreCivic's deferred tax assets and liabilities as of December 31, 2024 and 2023, are as follows (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Noncurrent deferred tax assets: |  |  |  |  |  |
Asset reserves and liabilities not yet deductible for tax |  | $ | 22,458 |  |  | $ | 14,915 |
Accrued compensation not yet deductible for tax |  |  | 14,252 |  |  |  | 12,419 |
Accrued workers compensation liabilities not yet deductible for tax |  |  | 11,126 |  |  |  | 11,333 |
Depreciation |  |  | 8,296 |  |  |  | 8,669 |
ROU lease assets |  |  | 5,887 |  |  |  | 25,282 |
Losses and tax credit carryforwards |  |  | 1,367 |  |  |  | 1,591 |
Intangible assets |  |  | 6,882 |  |  |  | 7,669 |
Other |  |  | 7,522 |  |  |  | 9,010 |
Total noncurrent deferred tax assets |  |  | 77,790 |  |  |  | 90,888 |
Less valuation allowance |  |  | (1,066 | ) |  |  | (848 | )
Total noncurrent deferred tax assets |  |  | 76,724 |  |  |  | 90,040 |
Noncurrent deferred tax liabilities: |  |  |  |  |  |
Depreciation |  |  | (150,481 | ) |  |  | (151,918 | )
Lease liabilities |  |  | (5,290 | ) |  |  | (24,721 | )
Intangible liabilities |  |  | (7,411 | ) |  |  | (7,860 | )
Other |  |  | (2,749 | ) |  |  | (2,456 | )
Total noncurrent deferred tax liabilities |  |  | (165,931 | ) |  |  | (186,955 | )
Net total noncurrent deferred tax liabilities |  | $ | (89,207 | ) |  | $ | (96,915 | )
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, 2024, 2023, and 2022 is as follows:
|  | 2024 |  |  | 2023 |  |  | 2022 |
Statutory federal rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal tax benefit |  |  | 2.9 |  |  |  | 4.5 |  |  |  | 3.4 |
Permanent differences |  |  | 5.9 |  |  |  | 4.3 |  |  |  | 1.7 |
Tax benefit of equity-based compensation |  |  | (2.5 | ) |  |  | (0.3 | ) |  |  | — |
Other items, net |  |  | (2.2 | ) |  |  | — |  |  |  | (0.1 | )
|  |  | 25.1 | % |  |  | 29.5 | % |  |  | 26.0 | %
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 ERC is largely uncollected as of December 31, 2024. The Inflation Reduction Act of 2022 (the "Inflation Reduction Act") was signed into law on August 16, 2022. Among other provisions, the Inflation Reduction 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 years ended December 31, 2024 and 2023 was estimated to be $0.5 million and $0.3 million, respectively, associated with the repurchase of shares, net of the shares issued during the same period 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, 2024 and 2023. 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 2021 through 2023 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 2020.

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