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Note 12 - Income Taxes
 9 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

12.

Income Taxes

 

The effective tax rates for the three-month and nine-month periods ended June 30, 2024 and 2023 reflected in the table below are less than the combined federal and state statutory rate of 25.74%.  The reduction to the effective tax rates for the three-month and nine-month periods ended June 30, 2024 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 to the effective tax rates for the three-month and nine-month periods ended June 30, 2023 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 June 30,

  

Nine Months Ended June 30,

 
  

2024

  

2023

  

2024

  

2023

 

Effective tax rate

  23.1%  23.8%  23.5%  23.7%

 

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 amended 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 June 30, 2024 and 2023; however, these assets and liabilities could be adjusted as a result of this examination.  Aside from the September 30, 2018 and 2019 amended returns, the federal returns prior to September 30, 2020 are no longer subject to examination as of the date of this Form 10-Q.  Additionally, the state returns for Virginia and West Virginia prior to September 30, 2020 are no longer subject to examination as of the date of this Form 10-Q.