INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the three months ended September 30, 2022, the Company recognized income tax expense of $11.1 million compared to $1.6 million for the same period in the prior year. The Company recognized income tax expense of $21.8 million in the first nine months of 2022 compared to $7.5 million for the same period in the prior year. The effective tax rates for the first nine months of 2022 and 2021 were 23.5% and 22.0%, respectively. For the first nine months of 2022 and 2021, the effective tax rate differs from the US Federal statutory rate of 21% primarily due to the impact of state and local taxes net of discrete items incurred related to stock-based compensation.

On August 16, 2022, the Inflation Reduction Act was signed into legislation and includes numerous tax incentives and provisions. The Company is evaluating the impact of the new legislation but does not expect a material impact on the condensed consolidated financial statements.