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INCOME TAXES
 9 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES

The Company recorded an income tax benefit of $3.2 million for the nine months ended June 30, 2019, resulting in an effective tax rate of (4.20%), compared to an income tax expense of $12.7 million, or an effective tax rate of 22.90%, for the nine months ended June 30, 2018. The Company’s effective tax rate is lower than the U.S. statutory rate of 21% primarily because of the anticipated effect of investment tax credits during fiscal year 2019. The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

The table below compares the income tax expense components for the periods presented.
Nine Months Ended June 30,
2019
 
2018
(Dollars in Thousands)
 
 
 
Provision at statutory rate
$
15,449

 
$
13,639

Tax-exempt income
(2,360
)
 
(5,506
)
State income taxes
3,243

 
2,314

Interim period effective rate adjustment
1,397

 
(1,070
)
Tax credit investments, net - federal
(22,484
)
 
—

Tax Reform rate adjustment
—

 
3,635

IRC 162(m) nondeductible compensation
1,612

 
—

Other, net
(101
)
 
(304
)
Income tax expense
$
(3,244
)
 
$
12,708

Effective tax rate
(4.2
%)
 
22.9
%