Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense (Benefit)

Our provision for income taxes for the years ended December 31, 2024, 2023 and 2022 consisted of the following:


	Year Ended December 31,
	2024		2023		2022
	(Dollars in thousands)
Current tax provision:
Federal	$	51,459	$	87,445	$	174,965
State	13,517		27,247		54,060
Total current	64,976		114,692		229,025

Deferred tax provision:
Federal	12,699		8,802		(26,030)
State	4,497		1,606		(5,280)
Total deferred	17,196		10,408		(31,310)
Provision for income taxes	$	82,172	$	125,100	$	197,715

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount that would be computed by applying the statutory federal income tax rate of 21% in 2024, 2023 and 2022 to income before income taxes as a result of the following:


	Year Ended December 31,
	2024			2023			2022
	(Dollars in thousands)
Tax expense computed at federal statutory rate	$	85,134		$	110,482		$	159,569
State income tax expense, net of federal benefit	9,178			19,523			30,213
Limitation on executive compensation	5,374			6,509			23,778
Tax expense (benefit) related to an increase (decrease) in unrecognized tax benefits	24,694			(263)			215
Stock based compensation (windfall)/shortfall	(27,533)			(6,701)			(2,553)
Federal energy credits	(17,297)			(8,938)			(15,265)
Merger related benefit payments	(9,342)			—			—
Rate changes	1,804			432			19
Transaction costs	4,755			—			—
Change in valuation allowance	221			1,524			(1,065)
Other	5,184			2,532			2,804
Provision for income taxes	$	82,172		$	125,100		$	197,715

Effective tax rate	20.3		%	23.8		%	26.0		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences that give rise to the net deferred tax asset are as follows:


	December 31,
	2024		2023
	(Dollars in thousands)
Deferred tax assets:
State net operating loss carryforwards	$	3,997	$	3,906
Stock-based compensation expense	—		1,492
Warranty, litigation and other reserves	16,224		16,542
Accrued compensation	1,502		9,067
Asset impairment charges	10,263		26,316
Inventory, additional net costs capitalized for tax purposes	15,978		10,955
Other, net	2,170		406
Total deferred tax assets	50,134		68,684
Valuation allowance	(3,996)		(3,775)
Total deferred tax assets, net of valuation allowance	46,138		64,909

Deferred tax liabilities:
Property, equipment and other assets	11,522		15,343
Deferral of profit on home sales	3,188		6,139
State deferral	4,185		2,859
Other, net	5,595		1,738
Total deferred tax liabilities	24,490		26,079
Net deferred tax asset	$	21,648	$	38,830

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes activity for the gross unrecognized tax benefit component of our total liability for uncertain tax positions for the years ended December 31, 2024, 2023 and 2022:


	Year Ended December 31,
	2024		2023		2022
	(Dollars in thousands)
Gross unrecognized tax benefits at beginning of year	$	405	$	646	$	383
Increases related to prior year tax positions	45		79		357
Increases related to current year tax positions	24,652		—		—
Decreases related to prior year tax positions	—		(250)		—
Lapse of applicable statute of limitations	(75)		(70)		(94)
Gross unrecognized tax benefits at end of year	$	25,027	$	405	$	646