Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

The Inflation Reduction Act (IRA) was enacted on August 16, 2022 to address the high cost of prescription drugs, healthcare availability, climate change and inflation. The IRA extended the energy efficient homes credit through 2032 and, as a result, the Company recognized a $0.9 million year-to-date tax benefit during the first half of 2023. The Company did not recognize a tax benefit for energy efficient homes credit in 2022’s first half due to the IRA enactment date noted above.

During the three months ended June 30, 2023 and 2022, the Company recorded a tax provision of $37.4 million and $45.3 million, respectively, which reflects income tax expense related to income before income taxes for the periods. The effective tax rate for the three months ended June 30, 2023 and 2022 was 24.0% and 24.9%, respectively. The decrease in the effective rate from the three months ended June 30, 2022 was primarily attributable to a $1.0 million increase in tax benefit from equity compensation for 2023.

During the six months ended June 30, 2023 and 2022, the Company recorded a tax provision of $70.3 million and $75.7 million, respectively. The effective tax rate for the six months ended June 30, 2023 and 2022 was 24.1% and 24.9%, respectively. The decrease in the effective rate from the six months ended June 30, 2022 was primarily attributable to a $1.6 million increase in tax benefit from equity compensation and a $0.9 million increase in tax benefit for energy efficient homes credit taken during the first half of 2023 compared to the same period in 2022 (due to the timing of the IRA enactment as described above).