Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Taxes [Abstract] | |
| Income Taxes | 12. Income Taxes
At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and to use that rate to provide for income taxes for the current year-to-date reporting period. Our 2025 estimated annual effective tax rate, before discrete items, of 25.6%, is driven by our blended federal and state statutory rate of 24.9%, and certain permanent differences between GAAP and tax, including disallowed deductions for executive compensation, and partially offset by estimated federal energy home credits for current year home deliveries.
For the six months ended June 30, 2025, our estimated annual rate of 25.6% was benefitted by discrete items which had a net impact of decreasing our rate by 0.1%, including the impact of excess tax benefits for vested stock-based compensation.
On July 4, 2025, H.R.1, the One Big Beautiful Bill Act, was signed into law, which disallows Section 45L tax credits for new energy-efficient homes delivered after June 30, 2026. As a result, our income tax expense and effective tax rate would not reflect a benefit from such tax credits as to homes delivered after that date.
For the three months ended June 30, 2025 and 2024, we recorded income tax expense of $12.2 million and $26.9 million, respectively. For the six months ended June 30, 2025 and 2024, we recorded income tax expense of $25.4 million and $46.9 million, respectively. |