Income Taxes

The Company’s effective tax rate for the three and six months ended June 30, 2018 was 15.9% and 14.6%, respectively. For the three and six months ended June 30, 2017, the Company's effective tax rate was 29.2% and 26.5%, 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 in the first quarter of 2018 related to homes settled in 2017.

Additionally, the effective tax rate for the three and six months ended June 30, 2018 and 2017 was favorably impacted by the recognition of an income tax benefit related to excess tax benefits from stock option exercises. This income tax benefit was $26,456 and $46,022 for the three and six months ended June 30, 2018, respectively, and was $16,464 and $36,364 for the three and six months ended June 30, 2017, respectively.