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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
INCOME TAXES  
INCOME TAXES

NOTE 8: INCOME TAXES

For financial reporting purposes, income before income taxes includes the following component:

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

    

​

​

​

​

​

Years ended December 31, 

    

2024

    

2023

    

2022

Income before income taxes - Domestic

​

$

21,142

​

$

52,062

​

$

52,134

​

The following table lists the components of the provision (benefit) for income taxes:

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

 

​

  

 

​

  

 

​

  

Years ended December 31, 

    

2024

    

2023

    

2022

Current provision:

 

​

  

 

​

  

 

​

  

Federal

​

$

3,986

​

$

12,384

​

$

12,225

State

​

 

442

​

 

1,109

​

 

1,360

Deferred (benefit):

​

 

​

​

 

​

​

 

​

Federal

​

 

(1,101)

​

 

(3,047)

​

 

(1,687)

State

​

 

(38)

​

 

(79)

​

 

(111)

Total income tax provision

​

$

3,289

​

$

10,367

​

$

11,787

​

The Organization for Economic Co-operation and Development (“OECD”) has released the Base Erosion and Profit Shifting framework 2.0 (“Pillar Two”) to introduce a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds. As of December 31, 2024, we have no recorded effects for Pillar Two due to our operational jurisdiction being wholly domestic. The United States has not yet enacted legislation to adopt Pillar Two. We will continue to monitor the impact of this legislation going forward. 

A reconciliation between the federal statutory rate and Marine Products’ income tax provision and effective tax rate is as follows:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

Years ended December 31, 

    

​

2024

​

​

2023

​

​

2022

Federal statutory rate

 

$

4,440

​

21.0

%  

​

$

10,933

​

21.0

%  

​

$

10,948

​

21.0

%  

State income taxes, net of federal benefit (a)

 

 

275

​

1.3

 

​

 

647

​

1.2

 

​

 

652

​

1.3

 

Tax credits

 

 

​

​

​

 

​

​

​

​

​

 

​

​

​

​

​

 

Research and Development Credit

​

​

(110)

​

(0.5)

​

​

​

(652)

​

(1.3)

​

​

​

(353)

​

(0.7)

​

Investment Tax Credit

​

​

(1,003)

​

(4.7)

​

​

​

—

​

—

​

​

​

—

​

—

​

Change in unrecognized tax benefits

​

 

49

​

0.2

​

​

 

241

​

0.5

​

​

 

434

​

0.8

​

Non-deductible expenses

​

 

(162)

​

(0.8)

​

​

 

(137)

​

(0.2)

​

​

 

391

​

0.7

​

Cross-border tax laws

 

 

(71)

​

(0.3)

 

​

 

(243)

​

(0.5)

 

​

 

(232)

​

(0.4)

 

Other

 

 

(129)

​

(0.6)

 

​

 

(422)

​

(0.8)

 

​

 

(53)

​

(0.1)

 

Income tax provision and effective tax rate

 

$

3,289

​

15.6

%

​

$

10,367

​

19.9

%

​

$

11,787

​

22.6

%

​

(a)State taxes in Florida and Georgia made up the majority (greater than 50 percent) of the tax effect in this category.

​

Significant components of the Company’s deferred tax assets and liabilities are as follows:

​

​

​

​

​

​

​

​

(in thousands)

 

​

  

 

​

  

December 31, 

    

2024

    

2023

Deferred tax assets:

 

​

  

 

​

  

Warranty costs

​

$

1,370

​

$

1,557

Sales incentives and discounts

​

 

436

​

 

570

Self-insurance

​

​

524

​

​

215

Stock-based compensation

​

 

908

​

 

824

Long-term retirement plan

​

 

4,767

​

 

3,960

Capitalized research and development

​

​

3,226

​

​

2,900

All others, net

​

 

331

​

 

250

Total deferred tax assets

​

 

11,562

​

 

10,276

Deferred tax liabilities:

​

 

  

​

 

  

Depreciation and amortization expense

​

 

(1,833)

​

 

(1,686)

Net deferred tax assets

​

$

9,729

​

$

8,590

​

Total net income tax payments were $4.5 million in 2024, $13.9 million in 2023, and $13.0 million in 2022. The following table lists the components of the payments for income taxes.

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

    

​

​

​

​

​

Years ended December 31, 

    

2024

    

2023

    

2022

Federal

​

$

4,000

​

$

12,999

​

$

12,100

State

​

 

​

​

 

​

​

 

​

Florida

​

​

160

​

​

450

​

​

375

North Carolina

​

​

94

​

​

175

​

​

90

Other

​

 

222

​

 

287

​

 

457

Total net payments

​

$

4,476

​

$

13,911

​

$

13,022

​

The Company’s policy is to record interest and penalties related to income tax matters, as part of income tax expense.

During 2024, the Company recognized an increase in its liability for unrecognized tax benefits related primarily to prior year positions and recorded in other long-term liabilities on the Consolidated Balance Sheet. This liability, if released, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

​

​

​

​

​

​

​

​

(in thousands)

​

2024

    

2023

Balance at January 1

​

$

1,349

​

$

1,058

Additions based on tax positions related to the current year

​

 

21

​

 

236

Additions for tax positions of prior years

​

 

41

​

 

55

Balance at December 31

​

$

1,411

​

$

1,349

​

The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases, the uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. In general, the Company’s 2021 through 2023 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year.