Income Taxes |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s income tax benefit for the three months ended September 30, 2025 and 2024 resulted in an effective tax rate of 9.4% and 31.6%, respectively. The Company's income tax benefit for the nine months ended September 30, 2025 and 2024 resulted in an effective tax rate of 0.9% and 1.2%, respectively. For the three and nine months ended September 30, 2025, the effective tax rate differed from the U.S. federal statutory rate primarily due to various tax credits, increased reserves on deferred tax assets, nondeductible expenses, changes to the valuation allowance and the nondeductible portion of the goodwill impairment. For the three and nine months ended September 30, 2024, the effective tax rate differed from the U.S. federal statutory rate primarily due to various tax credits, increased reserves on deferred tax assets, nondeductible expenses and the nondeductible goodwill impairment. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law. The provisions of the new law that are applicable to ModivCare are bonus depreciation, domestic research and development cost expensing, and business interest expense limitation. ASC 740, “Income Taxes”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The Company has included the impact of the new law in its Q3 2025 income tax provision as appropriate per ASC 740.
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