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Note 4 - Income Taxes
 3 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

4.

Income Taxes

 

The effective tax rates for the three-month periods ended December 31, 2023 and 2022 reflected in the table below are less than the combined federal and state statutory rate of 25.74%.  The reduction in the effective tax rate for the three-month period ended December 31, 2023 is due to additional tax deductions from the amortization of excess deferred taxes and amortization of RNG tax credits deferred as a regulatory liability.  The reduction in the effective tax rate for the three-month period ended December 31, 2022 is due to additional tax deductions from the amortization of excess deferred taxes and amortization of R&D tax credits deferred as a regulatory liability.

 

  

Three Months Ended December 31,

 
  

2023

  

2022

 

Effective tax rate

  24.0%  23.4%

 

The Company files a consolidated federal income tax return and state income tax returns in Virginia and West Virginia, and thus subject to examinations by federal and state tax authorities.  The IRS is currently examining the Company's 2018 and 2019 federal tax returns and the ultimate outcome of these examinations is unknown as of the date of this Form 10-Q.  The Company believes its income tax assets and liabilities are fairly stated as of December 31, 2023 and 2022; however, these assets and liabilities could be adjusted as a result of this examination.  The federal returns prior to September 30, 2017, state returns for Virginia prior to September 30, 2018 and state returns for West Virginia prior to  September 30, 2020 are no longer subject to examination.