Income Taxes

The Company’s effective tax rate for the three months ended March 31, 2018 and 2017 was 13.1% and 22.1%, respectively. The reduction in the effective tax rate was primarily due to the following items:


•	The enactment of the Tax Cuts and Jobs Act in December 2017, which lowered the Company's federal statutory tax rate from 35% to 21%, and


•	The retroactive reinstatement of certain expired energy tax credits under the Bipartisan Budget Act of 2018, which resulted in the Company recognizing a tax benefit of approximately $6,200 related to homes settled in 2017.

Additionally, the effective tax rate in both the first quarter of 2018 and 2017 was favorably impacted by the recognition of an income tax benefit related to excess tax benefits from stock option exercises totaling $19,567 and $19,900, respectively.