XML 35 R20.htm IDEA: XBRL DOCUMENT v3.22.1
INCOME TAXES
 6 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESThe Company recorded an income tax expense of $22.3 million for the six months ended March 31, 2022, resulting in an effective tax rate of 16.66%, compared to an income tax expense of $4.7 million, or an effective tax rate of 4.97%, for the six months ended March 31, 2021. The Company’s effective tax rate was lower than the U.S. statutory rate of 21% primarily because of the anticipated effect of investment tax credits during fiscal year 2022. 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.
Six Months Ended March 31,
(Dollars in thousands)20222021
Provision at statutory rate$27,899 $19,271 
Tax-exempt income(362)(486)
State income taxes5,543 4,135 
Interim period effective rate adjustment(3,870)(3,116)
Tax credit investments, net - federal(5,978)(15,464)
Research tax credit(355)(323)
IRC 162(m) nondeductible compensation505 487 
Other, net(1,104)161 
Income tax expense$22,278 $4,665 
Effective tax rate16.66 %4.97 %