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Note 7 - Provision for Income Taxes
 3 Months Ended
Mar. 31, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

7)            Provision for income taxes


The following table summarizes the provision for income taxes.


   

For the three months

ended March 31,

 
   

2014

   

2013

 

Provision for income taxes

  $ 3,722     $ 6,106  

Effective tax rate

    37.2 %     30.3 %

The effective tax rate for the three months ended March 31, 2014 reflects our expected tax rate on reported operating earnings before income tax and reflects the elimination of the small agri-biodiesel producer tax credit and the elimination of the tax credit for increasing research activities for 2014.


The effective tax rate for the three months ended March 31, 2013 reflected FutureFuel’s expected tax rate on reported operating earnings before income tax and the full anticipated impact of the retroactive reinstatement of the 2012 agri-biodiesel production tax credit, which was recognized in the three months ended March 31, 2013 as a discrete item.  As a result of this treatment, FutureFuel’s effective tax rate for the three months ended March 31, 2013 was abnormally low.


Unrecognized tax benefits totaled $1,718 and $1,718 at March 31, 2014 and December 31, 2013, respectively.


FutureFuel records interest and penalties net as a component of income tax expense.  At March 31, 2014 and December 31, 2013, respectively, FutureFuel recorded $0 and $0 in accruals for interest and tax penalties.


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 2010 forward.  FutureFuel Chemical is subject to the effects of tax examinations that may impact the carry-over basis of its assets and liabilities.