Company: BWMN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001628280-25-012365
Chunk: 47

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 15
Chunk 47
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 tax expense, including tax rate and apportionment factor changes.The adjustment to the statutory rate from Internal Revenue Code Section 162(m) for the year ended December 31, 2024, and December 31, 2023, are the result of permanent differences created by the annual disallowance of certain executive compensation exceeding $1.0 million.The adjustment to the statutory rate from stock compensation for the year ended December 31, 2024, and 2023, are the result of permanent differences recognized for the tax deduction in excess of book amortization on the exercise and vesting of stock-based compensation.The adjustment to the statutory rate from research and development credits for the year ended December 31, 2024, and 2023 are the result of application of research and development tax credits earned generated by the Company in connection with certain at-risk work performed on behalf of our customers.The Company has elected to record tax-related penalties and interest as current income tax expense. For the year ended December 31, 2024, total penalties and interest related to uncertain tax positions is a net decrease of $2.5 million, including a net decrease of $2.6 million related to IRC Section 174 research and development expenditures. For the year ended December 31, 2023, total penalties and interest related to uncertain tax positions is a net increase of $4.8 million, including a net increase of $4.6 million related to IRC Section 174 research and development expenditures. A reconciliation of the beginning balance and ending amounts of unrecognized tax benefits (excluding interest and penalties) is as follows for the year ended December 31, 2024, and 2023 (in thousands):20242023Balances at January 1$38,899 $716 Additions based on tax positions related to the prior year99 14,485 Decreases based on tax positions related to prior year(5,354)– Additions based on tax positions related to the current year19,617 23,698 Settlements– – Balances at December 31$53,261 $38,899 

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Table of Content

The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate at December 31, 2024 and 2023, is $1.2 million and $0.9 million, respectively. The amount of the unrecognized tax benefits expected to reverse within the next