Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Taxes [Abstract] | |
| Income Taxes | 11. 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 2026 estimated annual effective tax rate, before discrete items, of 26.0%, is driven by our blended federal and state statutory rate of 24.6%, and certain permanent differences between GAAP and tax, including disallowed deductions for executive compensation, partially offset by estimated federal energy home credits for current year home deliveries, which combined resulted in a net increase in our effective tax rate of 1.4%.
For the nine months ended September 30, 2026, our estimated annual rate of 26.0% was impacted by discrete items which decreased our rate by 0.5%, primarily reflecting favorable adjustments to prior-year income tax estimates upon completion of our federal income tax return.
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 for 2026 will not reflect a benefit from such tax credits related to homes delivered after June 30, 2026.
For the three months ended September 30, 2026 and 2025, we recorded income tax expense of $3.2 million and $10.4 million, respectively. For the nine months ended September 30, 2026 and 2025, we recorded income tax expense of $25.1 million and $35.8 million, respectively. |