Income Taxes

6 Months Ended

Jun. 30, 2024

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 $1.3 million tax benefit for energy efficient homes credit during the first six months of 2024. The Company recognized a $0.9 million tax benefit for energy efficient homes credit during the first six months of 2023.

During the three months ended June 30, 2024 and 2023, the Company recorded a tax provision of $47.4 million and $37.4 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, 2024 and 2023 was 24.4% and 24.0%, respectively. The increase in the effective rate from the three months ended June 30, 2023 was primarily attributable to a $0.7 million decrease in tax benefit from equity compensation in 2024.

During the six months ended June 30, 2024 and 2023, the Company recorded a tax provision of $89.6 million and $70.3 million, respectively. The effective tax rate for the six months ended June 30, 2024 and 2023 was 23.9% and 24.1%, respectively. The decrease in the effective rate from the six months ended June 30, 2023 was primarily attributable to a $0.6 million increase in tax benefit from equity compensation in 2024.