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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 16—Income Taxes

The provision for income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate, and if the estimated tax rate changes, a cumulative adjustment is recorded.

The Company recorded an income tax expense of $0.8 million and $0.1 million in the three months ended June 30, 2024 and 2025, respectively. The Company recorded an income tax expense of $0.6 million and benefit of $2.9 million in the six months ended June 30, 2024 and 2025, respectively. Income tax benefit and/or expense in each period is related to the Company’s U.S. and foreign operations.

The Company’s effective tax rate for the six months ended June 30, 2025 was impacted disproportionately by goodwill impairment of $64.3million in the first quarter of year 2025, which resulted in a discrete tax benefit of $2.9 million. The Company’s effective tax rate for the six months ended June 30, 2024 was different from the federal statutory rate primarily due to losses for which no tax benefit has been recognized. There was no discrete tax item that impacted the effective tax rate for the period.

The Company increased its unrecognized tax benefits in the three months ended June 30, 2025 by $0.8 million. This increase is primarily attributable to the deductions attributed to the unvested Amazon Warrant during the three months ended June 30, 2025. The net interest incurred was immaterial for the three months ended June 30, 2024 and 2025.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law. The OBBBA makes permanent many provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”) and introduces new changes. The major provisions that may impact the Company include:

●100% bonus depreciation is permanently reinstated for qualified property acquired and placed in service after January 19, 2025. Effective for property placed in service in tax years beginning after December 31, 2024, the Section 179 expense limitation is increased to $2,500,000. This limitation is reduced dollar-
for-dollar by the amount the cost of qualifying property placed in service during the tax year exceeds $4,000,000. 
●The Section 30C credit for alternative fuel vehicle refueling property terminates for properties placed in service after June 30, 2026.
●The Section 45Z clean fuel production credit is extended by two years through December 31, 2029; with modifications, including:
oProhibiting feedstocks other than those produced in the U.S., Canada or Mexico
oProhibiting negative emissions rates, except in the case of transportation fuel derived from animal manure. The U.S. Treasury is directed to provide guidance on feedstocks derived from animal manure, where emission rates may be negative.
oRequiring that greenhouse gas emissions be adjusted to exclude emissions attributable to indirect land use change, and establishing distinct emission rates for renewable natural gas produced from animal manure for each feedstock type. These changes are effective for tax years beginning after December 31, 2025.

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The Company is currently evaluating the potential financial statement impact of the OBBBA.

For the six months ended June 30, 2025, the Company’s joint venture with BP (the “bpJV”), sold $29.5 million of investment tax credits for gross proceeds of $27.2 million.