Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising during interim periods.

For the three months ended June 30, 2023 and 2022, the Company’s effective tax rate was 43.3% and 49.0%, respectively. The Company’s effective tax rate differed from the U.S. statutory tax rate primarily due to state taxes and officer excess compensation limitations.

For the three months ended June 30, 2023 and 2022, the Company recorded income tax expense of $3.5 million and $4.7 million, respectively.

For the six months ended June 30, 2023 and 2022, the Company’s effective tax rate was 47.9% and 40.9%, respectively. The Company’s effective tax rate differed from the U.S. statutory tax rate primarily due to state taxes and officer excess compensation limitations.

For the six months ended June 30, 2023 and 2022, the Company recorded income tax expense of $6.0 million and $9.5 million, respectively.

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (“IRA”), which, among other things, implements a 15% alternative minimum tax on corporations with book income in excess of $1 billion, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy effective January 1, 2023. The provisions of the IRA did not have an impact to the Company's financial statements. The Company will continue to monitor for updates to the Company’s business along with guidance issued with respect to the IRA to determine whether any adjustments are needed to the Company’s tax provision in future periods.