TAX EQUITY INVESTMENTS

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

The Company typically accounts for tax equity investments using the proportional amortization method, if certain criteria are met. The election to account for tax equity investments using the proportional amortization method is done so on a tax credit program-by-tax credit program basis. Under the proportional amortization method, the Company amortizes the initial cost of the investment, which is inclusive of any delayed equity contributions, that are unconditional and legally binding or for equity contributions that are contingent on a future event, when that event becomes probable, in proportion to the income tax credits and other income tax benefits that are allocated to the Company over the period of the investment.

Under the proportional amortization method, the Company amortizes the initial cost of the investment, inclusive of delayed equity contributions, in proportion to the income tax credits and other income tax benefits that are allocated to the Company over the period of the investment. The net benefits of these investments, which are comprised of income tax credits and operating loss income tax benefits, net of investment amortization, are recognized in the Consolidated Statements of Income as a component of income tax expense. At September 30, 2024 and December 31, 2023 the carrying value of all tax equity investments was $37.6 million and $16.6 million, respectively, and were included in other assets on the Consolidated Balance Sheets.

The carrying value of the Public Welfare Investments on September 30, 2024 included $17 million of delayed equity contributions described in the chart below.

As of September 30, 2024, the Company's delayed equity contributions were estimated to be paid as follows:


(In thousands)	Delayed Equity Contributions
2024	$	2,753
2025	7,814
2026	3,350
2027	2,841
2028	18
Thereafter	222
Total delayed equity contributions	$	16,998

The following table presents income tax credits and other income tax benefits, as well as amortization expense, associated with investments where the proportional amortization method of accounting has been applied for the periods indicated.


(In thousands)	Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Provision for Income Taxes:
Amortization of tax credit investments	$	(639)	$	(1,917)
Tax credit and other tax benefit/(expense)	170		931
Total provision for income taxes	(469)		(986)

There was no material non-income tax related expense associated with these investments recorded outside of income tax expense for the three and nine months ended September 30, 2024. The non-income tax related activity associated with these investments recorded outside of the income tax expense for the three and nine months ended September 30, 2023 was $1.5 million and $6.0 million, respectively. There were no impairment losses recorded on tax equity investments during the three and nine months ended September 30, 2024 and 2023, respectively.