17. INCOME TAXES A reconciliation of the differences between the U.S. statutory federal income tax rate of 21.0% and the Company’s effective income tax rate for the three and six months ended June 30, 2026, after the adoption of ASU 2023-09, is as follows: | | | | | | | | | | | | Three Months Ended June 30, | | | Six Months Ended June 30, | | | 2026 | | | 2026 | | | Amount | | Percent | | | Amount | | Percent | Federal statutory rate | $ | 19,587 | | 21.0% | | $ | 27,920 | | 21.0% | State income taxes, net of federal tax effect* | | 1,501 | | 1.6% | | | 2,017 | | 1.5% | Tax credits | | | | | | | | | | Orphan drug credit | | (3,060) | | (3.3)% | | | (4,322) | | (3.3)% | Research and development credit | | (770) | | (0.8)% | | | (1,080) | | (0.8)% | Other nontaxable or nondeductible items | | 742 | | 0.8% | | | 664 | | 0.5% | Other adjustments | | (166) | | (0.2)% | | | (166) | | (0.1)% | Effective tax rate | $ | 17,834 | | 19.1% | | $ | 25,033 | | 18.8% |
* State taxes in Illinois made up the majority (greater than 50%) of the tax effect in this category. A reconciliation of the differences between the U.S. statutory federal income tax rate of 21.0% and the Company’s effective tax rate for the three and six months ended June 30, 2025, prior to the adoption of ASU 2023-09, is as follows: | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | | 2025 | | 2025 | | Federal income tax rate | | 21.0 | % | 21.0 | % | Stock-based compensation | | (0.3) | | 0.1 | | State taxes | | 1.3 | | 1.2 | | Credits | | (2.7) | | (2.6) | | Other | | 0.6 | | 0.4 | | Total | | 19.9 | % | 20.1 | % |
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