Company: VGASW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015480
Chunk: 150

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 150
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 1, 2024 and ending December 31, 2024.The components of income taxes are as follows:For The Year EndedDecember 31,20242023Current:Federal$50,665 $166,265 State800 - Total current51,465 166,265 Deferred:Federal- - State- - Total deferred- - Total income tax expense$51,465 $166,265 

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Table of Contents

Income tax expense for the year ended December 31, 2024 consisted of $62,896 of current income taxes, and interest and penalties of $0 and $(11,431), respectively. Income tax expense for the year ended December 31, 2023 consisted of $119,186 of current income taxes, and interest and penalties of $15,701 and $31,377, respectively. As a policy election, the Company records interest and penalties within income tax expense.The Company’s effective tax rate was (0.5)% and (1.6)% for the years ended December 31, 2024 and 2023, respectively. The effective income tax rates for each period differed significantly from the statutory rate primarily due to the losses allocated to noncontrolling interests and the recognition of a valuation allowance as a result of the Company’s tax structure. The effective tax rate for the year ended December 31, 2023 also included a return to provision adjustment.A reconciliation of income tax expense with amounts computed at the federal statutory tax rate is as follows:For the Year EndedDecember 31,2024December 31,2023Computed tax (21%)$(2,197,349)$(2,170,352)Income attributable to legacy Intermediate holders- 516,715 Income tax benefits attributable to noncontrolling interests1,509,352 1,112,400 Change in tax basis of Opco1,555,355 - Change in valuation allowance(755,189)561,578 Other permanent items- 36,793 Other items(60,704)109,131 Income tax provision$51,465 $166,265 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Noncurrent deferred tax assets (liabilities) were as follows:As of December 31,2024December 31,2023Deferred tax liabilities: