Annual report pursuant to Section 13 and 15(d)

Income Tax (Tables)

v3.6.0.2
Income Tax (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Reconciliation between Statutory Rates and Effective Tax Rates

Below is a reconciliation between the statutory rates and our effective tax rates for the years ended December 31:

 

         2016             2015             2014      

U.S Federal & State combined statutory income tax rate

      40 %      40 %      40 % 

Reduction in rate resulting from:

       

Share Based Compensation

      (427 )%      —         —    

Equity Method Investments

      (968 )%      5 %      —    

Other

      11 %      —         —    

Valuation Allowance

      1,344 %      (46 )%      (40 )% 
  

 

 

    

 

 

    

 

 

  

HASI Effective Tax Rate

      0 %      (1) %      0 % 
  

 

 

    

 

 

    

 

 

  

Summary of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) include the following as of December 31:

 

         2016              2015      
     (dollars in millions)  

Financing receivable basis difference

    $ (11 )     $ (6 ) 

Equity method investments

      (14 )       (2 ) 
  

 

 

     

 

 

  

Gross deferred tax liabilities

      (25 )       (8 ) 
  

 

 

     

 

 

  

Net operating loss (NOL) and tax credit carryforwards

      29        9  

Equity-based compensation

      3        2  

Valuation allowance

      (7 )       (3 ) 
  

 

 

     

 

 

  

Gross deferred tax assets

      25        8  
  

 

 

     

 

 

  

Net deferred tax liabilities

    $ —        $ —    
  

 

 

     

 

 

  
Cash Dividends Paid for Federal Income Tax Purposes

For federal income tax purposes, the cash dividends paid for the years ended December 31, 2016 and 2015 are characterized as follows:

 

         2016             2015      

Common distributions

     

Ordinary income

      0 %      23 % 

Return of capital

      100 %      77 % 
  

 

 

    

 

 

  
     100 %      100 %