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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income tax expense were:
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 10,185 |  |  | 8,570 |  |  | 8,587 |
State | 4,281 |  |  | 3,170 |  |  | 2,633 |
Deferred: |  |  |  |  |
Federal | (8,871) |  |  | (3,223) |  |  | (3,811) |
State | 361 |  |  | (21) |  |  | 960 |
| $ | 5,956 |  |  | 8,496 |  |  | 8,369 |
The following table reconciles income tax expense to the amount computed by applying the federal statutory rate to income before income taxes of $90,943, $82,324 and $68,847 in 2023, 2022 and 2021, respectively:
| 2023 |  | 2022 |  | 2021
Income tax at federal statutory rate | $ | 19,098 |  |  | 17,288 |  |  | 14,458 |
Increase (decrease) in taxes attributable to: |  |  |  |  |
State taxes, net of federal income tax benefit | 6,001 |  |  | 5,328 |  |  | 4,572 |
Uncertain tax positions | (4,330) |  |  | 1,483 |  |  | 1,678 |
Property flow-through | (9,045) |  |  | (13,091) |  |  | (8,573) |
Reversal of excess deferred taxes recognized in regulatory liability | (3,625) |  |  | (3,885) |  |  | (3,295) |
Pension flow-through | (597) |  |  | 27 |  |  | 429 |
Stock-based compensation | (491) |  |  | (297) |  |  | (331) |
Other items, net | (1,055) |  |  | 1,643 |  |  | (569) |
| $ | 5,956 |  |  | 8,496 |  |  | 8,369 |
The components of the net deferred tax liability as of December 31 was as follows:
| 2023 |  | 2022
Deferred tax assets: |  |  |
Advances and contributions | $ | 25,714 |  |  | 25,462 |
Unamortized investment tax credit | 517 |  |  | 575 |
Pensions, postretirement benefits and stock-based compensation | 17,844 |  |  | 23,161 |
Debt premium, net | 4,157 |  |  | 4,868 |
California franchise tax | 713 |  |  | 640 |
Deferred revenue | 841 |  |  | 1,444 |
Tax related regulatory liability | 24,358 |  |  | 25,750 |
Other | 7,077 |  |  | 6,627 |
Total deferred tax assets | 81,221 |  |  | 88,527 |
Deferred tax liabilities: |  |  |
Utility plant | 243,786 |  |  | 229,500 |
Pension and postretirement | 13,247 |  |  | 17,709 |
Deferred gain and other-property | 6,456 |  |  | 5,982 |
Regulatory asset - business combinations debt premium, net | 4,157 |  |  | 4,868 |
Intangibles | 2,693 |  |  | 2,943 |
Tax related regulatory asset | 44,155 |  |  | 38,599 |
Section 481(a) adjustments | — |  |  | 1,573 |
Other | 5,255 |  |  | 5,508 |
Total deferred tax liabilities | 319,749 |  |  | 306,682 |
Net deferred tax liabilities | $ | 238,528 |  |  | 218,155 |
Management evaluates the realizability of deferred tax assets based on all available evidence, both positive and negative. The realization of deferred tax assets is dependent on our ability to generate sufficient future taxable income during periods in which the deferred tax assets are expected to reverse. Based on all available evidence, management believes it is more likely than not that SJW Group will realize the benefits of its deferred tax assets. Net operating loss carryforwards expire beginning in 2032 and ending in 2039. As of December 31, 2023, the estimated amount of net operating loss carryforwards available to offset future taxable income for Connecticut purposes is $18,369. The estimated state tax credit carryforwards are $707 which will expire beginning in 2024 and ending in 2040. The change in the net deferred tax liabilities of $20,373 in 2023 included other non-cash items primarily consisting of regulatory assets and liabilities relating to income tax temporary differences. The total amount of unrecognized tax benefits, before the impact of deductions for state taxes, excluding interest and penalties was $4,511 and $9,004 as of December 31, 2023 and 2022, respectively. The amount of tax benefits, net of any federal benefits for state taxes that would impact the effective rate, if recognized, is approximately $4,048 and $8,262 as of December 31, 2023 and 2022, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 9,004 |  |  | 7,961 |  |  | 6,468 |
Increase related to tax positions taken during the current year | 231 |  |  | 1,549 |  |  | 1,376 |
Increase related to tax positions taken during a prior year | 364 |  |  | — |  |  | 117 |
Reductions related to statute expiration | (1,191) |  |  | (284) |  |  | — |
Reductions related to tax positions taken in a prior year | (3,897) |  |  | (222) |  |  | — |
Balance at end of year | $ | 4,511 |  |  | 9,004 |  |  | 7,961 |
The decrease in gross unrecognized tax benefits in 2023 was primarily due to the release of an uncertain tax position reserve relating to repairs tax deductions. In April 2023, the IRS issued additional tax guidance that has allowed the company to revisit certain historical income tax reserves. Pursuant to the issuance of this guidance, which provided additional clarification regarding some of the uncertain tax areas, the company re-evaluated the risk relating to repair deductions. The result of the analysis led to a release of an uncertain tax position reserve. The release relates to repairs expenditures which are more likely than not to be sustained on audit. The release due to re-evaluation of the reserve was $3,125. SJW Group’s policy is to classify interest and penalties associated with unrecognized tax benefits, if any, in tax expense. Accrued interest expense, net of the benefit of tax deductions which would be available on the payment of such interest, is approximately $455 as of December 31, 2023. SJW Group has not accrued any penalties for unrecognized tax benefits. The amount of interest recognized in 2023 was a decrease to expense of $151. SJW Group currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of lapse of the statute of limitations. SJW Group files U.S. federal income tax returns and income tax returns in various states and is subject to ordinary statute of limitation of three years for federal and three or four years for different state returns. However, due to tax attribute carryforwards, SJW Group is subject to examination for tax years 2012 forward for federal and state returns of CTWS and its subsidiaries. The statute of limitation for SJW Group returns is closed for these extended years and remains open for 2020 and forward for federal and 2019 or 2020 and forward for different states.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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