Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

During the three months ended September 30, 2019 and 2018, the Company recorded a tax provision of $12.2 million and $10.2 million, respectively, which reflects income tax expense related to the periods’ income before income taxes. The effective tax rate for the three months ended September 30, 2019 and 2018 was 24.4% and 25.8%, respectively. The decrease in the effective rate for the three months ended September 30, 2019 from prior year was primarily attributable to the tax benefit of equity compensation and changes in state tax rate and apportionments. During the nine months ended September 30, 2019 and 2018, the Company recorded a tax provision of $28.9 million and $21.6 million, respectively, which reflects income tax expense related to the periods’ income before income taxes. The effective tax rate for the nine months ended September 30, 2019 and 2018 was 25.2% and 22.3%, respectively. The increase in the effective rate for the nine months ended September 30, 2019 from prior year was primarily attributable to a $3.0 million nonrecurring tax benefit recorded during the quarter ended June 30, 2018 related to the retroactive reinstatement of energy efficient homes tax credits.

The Company had $1.1 million of state NOL carryforwards, net of the federal benefit, at September 30, 2019. Our state NOLs may be carried forward from one to 15 years, depending on the tax jurisdiction, with $0.6 million expiring between 2022 and 2027 and $0.5 million expiring between 2028 and 2032, absent sufficient state taxable income.