Company: CENX
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000949157-25-000024
Chunk: 155

Company: CENTURY ALUMINUM CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 8
Chunk 155
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. Federal income tax rate to the effective income tax rate on income (loss) is as follows:Year Ended December 31, 202420232022Federal Statutory Rate21.0 %21.0 %21.0 %Permanent differences1.0 1.1 (15.2)State taxes, net of Federal benefit— (0.1)0.1 Rate change(0.5)(0.3)0.4 Foreign earnings taxed at different rates than U.S.— 2.0 (0.8)Valuation allowance(11.3)3.6 (4.2)Foreign dividends and inclusions0.5 (12.7)122.9 Net operating loss expiration and remeasurement2.8 (8.0)43.1 Filing differences8.7 0.6 (19.1)Changes in uncertain tax reserves0.2 (1.3)(5.3)Advanced Manufacturing Production Credit(5.9)18.6 — Bargain Purchase gain(15.7)— — Other0.2 (2.7)(0.9)Effective tax rate1.0 %21.8 %142.0 %The effective tax rate for the year ending December 31, 2024 was 1.0% compared to the statutory US tax rate of 21%. This lower effective rate is primarily due to the bargain purchase gain recognized for US GAAP purposes but not for US tax purposes, as well as the non-taxable benefit of the Advanced Manufacturing Credit under Section 45X, which is discussed below.In August 2022, the IRA became law. The IRA provides several tax incentives to promote clean energy and the production of critical minerals in the U.S., including a refundable tax credit, pursuant to Section 45X of the Internal Revenue Code. Tax credits, such as refundable credits whose realization does not depend on the entity’s generation of taxable income like the refundable tax credit provided by the IRA are not considered an element of income tax accounting under ASC 740. After considering US GAAP, the Company has concluded it is appropriate to apply IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, to account for the refundable tax credit as an income grant. Section 45X of the IRA contains a production tax credit equal to 10% of certain eligible production costs, including,