BOISE CASCADE Co

4. Income Taxes

Income Tax Provision

Income before income taxes includes the following components:

The income tax provision shown in the Consolidated Statements of Operations includes the following:

The effective tax rate varies from the U.S. Federal statutory income tax rate principally due to the following:

During the years ended December 31, 2024, 2023, and 2022, cash paid for taxes, net of refunds received, was $130.6 million, $133.0 million, and $260.0 million, respectively.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The components of our net deferred tax assets and liabilities at December 31, 2024 and 2023, are summarized as follows:

As of December 31, 2024, we have foreign net operating loss carryforwards of $5.6 million, which if unused, will expire in years 2036 through 2044. We have state income tax credits totaling $1.7 million as of December 31, 2024, which if unused, will expire in years 2032 through 2034. The foreign net operating loss and state credit carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those net operating losses and state credit carryforwards are presented net of these unrecognized tax benefits.

Income Tax Uncertainties

The following table summarizes the changes related to our gross unrecognized tax benefits excluding interest and penalties:

As of December 31, 2024, 2023, and 2022, we had $1.6 million, $1.6 million, and $1.7 million, respectively, of unrecognized tax benefits recorded on our Consolidated Balance Sheets, excluding interest and penalties. Of the total unrecognized tax benefits recorded, $1.5 million, $1.5 million, and $1.7 million (net of the federal benefit for state taxes), respectively, would impact the effective tax rate if recognized.

We recognize interest and penalties related to uncertain tax positions as income tax expense in our Consolidated Statements of Operations. For the years ended December 31, 2024, 2023, and 2022, we recognized an insignificant amount of interest and penalties related to taxes. We recognize tax liabilities and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available or as new uncertainties arise. We do not expect the unrecognized tax benefits to change significantly over the next twelve months.

We file income tax returns in the U.S. and various state and foreign jurisdictions. Tax years 2021 to present remain open to examination in the U.S. and tax years 2020 to present remain open to examination in Canada and various states. We recorded net operating losses in Canada beginning in 2006 that are subject to examinations and adjustments up to four years following the year in which they are utilized.