Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

12. Income Taxes

Income tax expense (benefit) attributable to income from operations differed from the amount computed by applying the statutory federal income tax rate of 21% as of March 31, 2024 and 2023 to pre-tax income as a result of the following:

	Three Months Ended March 31,
	2024				2023
U.S. federal statutory tax rate	$	3,898	21.0	%	$	2,905	21.0	%
State and local income taxes, net of federal income tax effect (a)		813	4.4	%		606	4.4	%
Energy related tax credits		(48)	(0.3)	%		(94)	(0.7)	%
Other items		(14)	(0.1)	%		24	0.2	%
Total income tax expense	$	4,649	25.0	%	$	3,441	24.9	%

(a) State taxes in Florida make up the majority of the tax effect in this category.

As of March 31, 2024 and December 31, 2023, the Company had income tax payable of $8.2 million and $9.2 million, respectively, included within accounts payable and other liabilities on the condensed consolidated balance sheets.

The Inflation Reduction Act (“IRA”) was signed into law in August 2022. The IRA extended the Internal Revenue Code Section 45L credit, a credit for the installation of energy efficient appliances and equipment in both single family and multi-family homes, to tax year 2032.

In general, a valuation allowance is recorded if, based on all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years in the appropriate tax jurisdictions to obtain a benefit from the reversal of deductible temporary differences and from loss carryforwards. As of both March 31, 2024 and December 31, 2023, the Company’s valuation allowance was $0.3 million against certain state net operating loss carryforwards.

Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company regularly assesses the likelihood of adverse outcomes resulting from potential examinations to determine the adequacy of its provision for income taxes and applies a “more-likely-than-not” in

determining the financial statement recognition and measurement of a tax position taken or expected to be taken in the tax returns. The Company has not identified any material unrecognized tax benefits as of either March 31, 2024 or December 31, 2023.