Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is composed of the following:


	For the year ended December 31,
	2024		2023		2022
Current:
Federal	$	—	$	—	$	—
State	50		32		(2)
Total current expense (benefit)	50		32		(2)
Deferred:
Federal	16,301		(959)		1,051
State	(2,107)		244		27
Total deferred tax expense (benefit)	$	14,194	$	(715)	$	1,078
Income tax expense (benefit)	$	14,244	$	(683)	$	1,076

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the income tax expense (benefit) computed at the U.S. federal statutory rate and the Company’s income tax expense (benefit):


	For the year ended December 31,
	2024		2023		2022
Income tax expense (benefit) – computed as 21% of pretax (loss) income	$	757	$	(5,598)	$	11,181
Effect of noncontrolling interests and redeemable noncontrolling interests	2,518		3,490		691
State tax, net of federal benefit	(1,576)		169		(138)
Valuation allowance	21,807		73		158
Transaction costs related to the CBAH Merger	—		—		(12)
Transaction costs related to the CBAH Merger (return to provision)	—		—		(678)
Effect of tax credits	(726)		(254)		(75)
Stock-based compensation	308		2,480		1,614
Change in fair value of redeemable warrant and Alignment Shares liability	(8,615)		(1,183)		(11,690)
Deferred rate change	(1,749)		—		—
Other deferred items	1,520		140		25
Income tax expense (benefit)	$	14,244	$	(683)	$	1,076
Effective income tax rate	398.2%		2.6%		2.0		%

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2024 and 2023, the Company’s deferred tax assets and liabilities are comprised of the following:


	As of December 31,
	2024		2023
Deferred tax assets:
Net operating losses	$	135,266	$	86,078
Intangible liabilities	—		397
Deferred financing costs	9,618		6,334
Tax credits	1,684		945
Operating lease liability	27,350		24,813
Asset retirement obligation	2,559		4,453
Stock-based compensation	2,092		1,096
Accrued bonus	1,128		—
Derivative liability	—		1,973
Sec. 163(j) interest limitation	41,266		27,567
Total deferred tax assets	$	220,963	$	153,656
Valuation allowance	(22,675)		(868)
Net deferred tax assets	$	198,288	$	152,788
Deferred tax liabilities:
Property, plant and equipment	$	(131,249)	$	(94,286)
Intangible assets	(611)		(617)
Operating lease asset	(24,262)		(22,224)
Derivative assets	(550)		—
Other liabilities	(448)		—
Investments in partnerships	(64,033)		(45,492)
Total deferred tax liabilities	(221,153)		(162,619)
Net deferred tax liability	$	(22,865)	$	(9,831)

Altus Power, Inc. 10-K