ALTA EQUIPMENT GROUP INC

NOTE 12 — INCOME TAXES

The Company recognized an income tax benefit of$4.2 million and expense of $0.1 million for the three months ended March 31, 2024 and 2023 respectively.

The income tax benefit was primarily attributable to the net loss during the three months ended March 31, 2024. We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis.

The effective tax rate for the three months ended March 31, 2024 and 2023 was 26.1% and 9.1%, respectively. The effective income tax rate in 2023 was primarily related to income tax expense associated with tax filing jurisdictions with no associated valuation allowance and 2024 had no jurisdictions limited by a valuation allowance.