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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
11.
INCOME TAXES

CoreCivic recorded an income tax expense of $40.7 million, $23.1 million, and $28.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. Income tax expense is comprised of the following components (in thousands):

 

 

 

For the Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Current income tax expense

 

 

 

 

 

 

 

 

 

Federal

 

$

25,031

 

 

$

26,621

 

 

$

25,037

 

State

 

 

6,485

 

 

 

4,182

 

 

 

5,899

 

 

 

 

31,516

 

 

 

30,803

 

 

 

30,936

 

Deferred income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Federal

 

 

8,933

 

 

 

(7,100

)

 

 

(2,156

)

State

 

 

224

 

 

 

(608

)

 

 

(547

)

 

 

 

9,157

 

 

 

(7,708

)

 

 

(2,703

)

Income tax expense

 

$

40,673

 

 

$

23,095

 

 

$

28,233

 

 

Significant components of CoreCivic's deferred tax assets and liabilities as of December 31, 2025 and 2024, are as follows (in thousands):

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Noncurrent deferred tax assets:

 

 

 

 

 

 

   Asset reserves and liabilities not yet deductible for tax

 

$

14,243

 

 

$

22,458

 

   Accrued compensation not yet deductible for tax

 

 

16,713

 

 

 

14,252

 

   Accrued workers compensation liabilities not
      yet deductible for tax

 

 

13,280

 

 

 

11,126

 

   Depreciation

 

 

8,443

 

 

 

8,296

 

   ROU lease assets

 

 

34,785

 

 

 

5,887

 

   Losses and tax credit carryforwards

 

 

1,092

 

 

 

1,367

 

   Intangible assets

 

 

6,829

 

 

 

6,882

 

   Other

 

 

5,949

 

 

 

7,522

 

 Total noncurrent deferred tax assets

 

 

101,334

 

 

 

77,790

 

 Less valuation allowance

 

 

(1,066

)

 

 

(1,066

)

 Total noncurrent deferred tax assets

 

 

100,268

 

 

 

76,724

 

Noncurrent deferred tax liabilities:

 

 

 

 

 

 

   Depreciation

 

 

(153,958

)

 

 

(150,481

)

   Lease liabilities

 

 

(33,089

)

 

 

(5,290

)

   Intangible liabilities

 

 

(6,944

)

 

 

(7,411

)

   Other

 

 

(4,641

)

 

 

(2,749

)

 Total noncurrent deferred tax liabilities

 

 

(198,632

)

 

 

(165,931

)

Net total noncurrent deferred tax liabilities

 

$

(98,364

)

 

$

(89,207

)

 

A reconciliation in both percentages and U.S. dollars 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, 2025, 2024, and 2023 is as follows (amounts in thousands):

 

 

 

 

For the Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

US federal statutory tax rate

 

$

33,007

 

 

21.0

%

 

$

19,312

 

 

21.0

%

 

$

20,123

 

 

21.0

%

State and local income taxes,
   net of federal tax benefit*

 

 

4,469

 

 

2.8

 

 

 

2,711

 

 

2.9

 

 

 

3,070

 

 

3.2

 

Changes in valuation allowance

 

 

—

 

 

—

 

 

 

218

 

 

0.2

 

 

 

—

 

 

—

 

Nontaxable or nondeductible items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Disallowed executive
      compensation

 

 

4,662

 

 

3.0

 

 

 

3,418

 

 

3.7

 

 

 

2,304

 

 

2.4

 

   Disallowed meals and
      entertainment

 

 

937

 

 

0.6

 

 

 

827

 

 

0.9

 

 

 

1,227

 

 

1.3

 

   Other nondeductible items

 

 

984

 

 

0.6

 

 

 

1,198

 

 

1.3

 

 

 

599

 

 

0.6

 

Changes in unrecognized tax
    benefits

 

 

—

 

 

—

 

 

 

(494

)

 

(0.5

)

 

 

59

 

 

0.1

 

Other adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Income tax benefit of equity
       compensation

 

 

(2,538

)

 

(1.6

)

 

 

(2,288

)

 

(2.5

)

 

 

(289

)

 

(0.3

)

   Revaluation of deferred tax items

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

931

 

 

1.0

 

   Prior year return to provision

 

 

141

 

 

0.1

 

 

 

(942

)

 

(1.0

)

 

 

1,095

 

 

1.1

 

   Other items, net

 

 

(989

)

 

(0.6

)

 

 

(865

)

 

(0.9

)

 

 

(886

)

 

(0.9

)

 

 

$

40,673

 

 

25.9

%

 

$

23,095

 

 

25.1

%

 

$

28,233

 

 

29.5

%

 

*State taxes in Arizona and Texas made up the majority (greater than 50%) of the tax effect in this category for the years ended December 31, 2025, 2024 and 2023.

 

 

 

For the Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Pretax income from continuing operations

 

$

157,176

 

 

$

91,963

 

 

$

95,823

 

Federal statutory income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

Expected income tax expense

 

 

33,007

 

 

 

19,312

 

 

 

20,123

 

5% disaggregation threshold

 

 

5.0

%

 

 

5.0

%

 

 

5.0

%

Reconciling item threshold

 

$

1,650

 

 

$

966

 

 

$

1,006

 

 

 

Annual income taxes paid, net of refunds received and disaggregated by jurisdiction, for the years ended December 31, 2025, 2024, and 2023 are as follows (in thousands):

 

 

 

For the Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Federal

 

$

31,666

 

 

$

31,420

 

 

$

20,770

 

State

 

 

 

 

 

 

 

 

 

   State of Arizona

 

 

1,325

 

 

 

1,984

 

 

 

1,184

 

   State of Texas

 

 

1,398

 

 

 

1,382

 

 

 

1,500

 

All other states (individually
    less than 5% of total)

 

 

2,633

 

 

 

2,322

 

 

 

2,434

 

      Total income taxes paid

 

$

37,022

 

 

$

37,108

 

 

$

25,888

 

 

The One Big Beautiful Bill Act ("OBBBA") was passed by the U.S. Congress in 2025 and signed into law by President Trump on July 4, 2025. The OBBBA includes a broad range of tax reform provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company adopted the tax provisions in the current period when the provisions were signed into law.

CoreCivic had no liabilities for uncertain tax positions as of December 31, 2025 and 2024. 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 2022 through 2024 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 2021.