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Note 7 - Provision for income taxes
 3 Months Ended
Mar. 31, 2012
Income Tax Disclosure [Text Block]
7)           Provision for income taxes

The following table summarizes the provision for income taxes:

   
Three months ended March 31,
 
   
2012
   
2011
 
Provision for income taxes
  $ 4,866     $ 1,236  
Effective tax rate
    40.6 %     31.3 %

The effective tax rates for the three months ended March 31, 2012 and 2011 reflect FutureFuel’s expected tax rate on reported operating earnings before income taxes and includes the impact of the elimination of the agri-biodiesel production credit for 2012. FutureFuel has determined that it does not believe that it has a more likely than not probability of realizing a portion of its deferred tax assets. As such, it recorded a valuation allowance of $384 at March 31, 2012.

FutureFuel had no unrecognized tax benefits at March 31, 2012 or December 31, 2011.

FutureFuel records interest and penalties net as a component of income tax expense.  FutureFuel had no accrual for interest or tax penalties at March 31, 2012 or December 31, 2011.

FutureFuel and its subsidiaries file tax returns in the U.S. federal jurisdiction and with various state jurisdictions.  FutureFuel is subject to U.S., state, and local examinations by tax authorities from 2008 forward.  FutureFuel Chemical is subject to the effects of tax examinations that may impact the carry-over basis of its assets and liabilities.