Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

Income Taxes
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes    
The income tax benefit (expense) rate for the three months ended September 30, 2020 and 2019 was 24.5% and (4.8)%, respectively, and for the nine months ended September 30, 2020 and 2019 was 8.5% and 0.1%, respectively. The differences between the actual consolidated effective income tax rate and the U.S. federal statutory rate were primarily attributable to the allocation of losses on noncontrolling interests and an increase in valuation allowance and stock-based compensation.
The Company sells solar energy systems to investment Funds. As the investment Funds are consolidated by the Company, the gain on the sale of the assets has been eliminated in the consolidated financial statements, however gains on sale are recognized for tax purposes.
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law. The CARES Act is a relief package that includes changes to the U.S. tax code including but not limited to, (1) modifications to the calculation of interest deductibility in 2019 and 2020, (2) changes to rules related to the uses and limitations of net operating loss carryforwards created from 2018 to 2020, and (3) technical corrections for qualified improvement property. The Company does not anticipate the CARES Act will have a material impact on income tax expense for 2020.
Uncertain Tax Positions
As of September 30, 2020 and December 31, 2019, the Company had no uncertain tax positions.
Tax Holidays
The Company received approval from a U.S. territory for a reduced income tax rate on February 3, 2020. The reduced income tax rate is retroactive to 2018 and is effective through December 31, 2043. The benefit from the reduced income tax rate of $1.3 million for the years ended December 31, 2019 and 2018 was included in income tax expense for the quarter ended September 30, 2020. The benefit from the reduced income tax rate for the quarter ended September 30, 2020 was $0.5 million.