Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2677

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 8
Chunk 2677
---
 federal benefit

    (710
    )

    -

    Permanent items

    380

    5,852

    Tax effect of differences in foreign tax rates

    (4,747
    )

    2,622

    Other

    1,398

    302

    Change in valuation allowance

    (213
    )

    2,502

    Actual income tax expense/(benefit)
     
    $
    677

    $
    15

The tax effects of temporary
difference and carryforwards that give rise to significant portions of the net deferred tax assets were as follows:

    Year Ended December 31, 

    2024  
    2023 

    (in thousands) 
  
    Deferred tax assets: 

    Net operating losses 
    $4,137  
    $1,329 
  
    Asset basis differences 
     869  
     - 
  
    Interest expense carryforward 
     475  
     4,343 
  
    Lease liabilities 
     -  
     312 
  
    Total deferred tax assets 
     5,481  
     5,984 
  
    Deferred tax asset valuation allowance 
     (5,481) 
     (5,693)
  
    Net deferred tax assets 
     -  
     291 

    Deferred tax liabilities: 

    Other 
     -  
     - 
  
    Right-of-use asset 
     -  
     (291)
  
    Total deferred tax liabilities 
     -  
     (291)
  
    Net deferred taxes 
    $-  
    $- 

F-52

The Company’s valuation
allowance decreased during 2024 by $213 thousand, primarily due to the loss of foreign income tax attributes after the disposal of foreign
subsidiaries in US, Poland, Netherland, Ireland and Romania

Deferred tax assets have not
been recognized in respect of these losses as they may not be used to offset taxable profits elsewhere in the Company and there are no
other tax planning opportunities or other evidence of recoverability in the near future.

Future realization of the
tax benefits of existing temporary differences and net operating loss carryforwards ultimately depends on the existence of sufficient
taxable income within the carryforward period. As of December 31, 2024, the Company performed an evaluation to determine whether