Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 671

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 3
Chunk 671
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 rates and will be refunded
back to customers in a future rate proceeding.

51 

Note 3 – Income Taxes 

Income tax expense (benefit) differs from the
amount computed by applying the statutory rate on book income subject to tax for the following reasons:

    (In Thousands)

    Years Ended December 31,

    2024 
    2023 
    2022
  
    Income Tax at Statutory Rate 
    $10,764  
    $6,839  
    $9,590 
  
    Tax Effect of: 

    Utility Plant Related 
     (659) 
     (1,495) 
     (1,106)
  
    Tangible Property Repairs 
     (4,535) 
     (5,475) 
     (6,767)
  
    State Income Taxes – Net 
     1,270  
     1,117  
     1,296 
  
    Other 
     65  
     55  
     227 
  
    Total Income Tax Expense 
    $6,905  
    $1,041  
    $3,240 

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

    (In Thousands)

    Years Ended December 31,

    2024 
    2023 
    2022
  
    Current: 

    Federal 
    $1,554  
    $2,952  
    $425 
  
    State 
     1,126  
     1,066  
     1,381 
  
    Deferred: 

    Federal 
     3,802  
     (3,261) 
     1,242 
  
    State 
     482  
     348  
     260 
  
    Investment Tax Credits 
     (59) 
     (64) 
     (68)
  
    Total Income Tax Expense 
    $6,905  
    $1,041  
    $3,240 

As part of Middlesex’s March 2018 general
rate case settlement with the NJBPU, Middlesex received approval for regulatory accounting treatment of income tax benefits associated
with the adoption of tangible property regulations issued by the IRS (fully amortized as of March 31, 2022) as well as prospective recognition
of the income tax benefits for the immediate deduction