Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefits)
The provision (benefit) for income taxes are as follows:
Year Ended December 31,
2022 2021 2020
(dollars in thousands)
Current:
Federal $ 22,350  $ 11,507  $ 833 
State 9,350  5,314  1,104 
Current tax provision 31,700  16,821  1,937 
 
Deferred:
Federal (4,681) (2,425) (3,602)
State (1,619) (401) (1,416)
Deferred tax benefit (6,300) (2,826) (5,018)
 
Total income tax provision (benefit), net $ 25,400  $ 13,995  $ (3,081)
Schedule of Effective Income Tax Rate Reconciliation
The provision (benefit) for income taxes varies from the U.S. federal statutory rate. The following reconciliation shows the significant differences in the tax at statutory and effective rates:
Year Ended December 31,
2022 2021 2020
Federal income tax expense 21.0  % 21.0  % 21.0  %
State income tax expense, net of federal tax effect 6.4  5.6  5.7 
162(m) limitation 1.0  (1.3) — 
PPP loan —  1.8  — 
Fair market value of warrant 1.5  (0.7) — 
Noncontrolling interest (0.5) —  — 
Energy efficient home credits (3.6) (6.2) 5.6 
Other permanent differences —  0.1  (0.3)
Return to provision adjustment (0.7) 0.4  (3.5)
Rate change (0.1) 0.1  (3.2)
Change of valuation allowance (0.1) 0.2  — 
Other 0.2  —  — 
Effective tax rate 25.1  % 21.0  % 25.3  %
Schedule of Deferred Tax Assets and Liabilities The tax effects of
significant temporary differences that give rise to the deferred tax assets, net of deferred tax liabilities, are as follows:
December 31,
2022 2021
(dollars in thousands)
Deferred tax assets
Accrued expenses $ 14,279  $ 3,764 
Lease liability 4,384  3,479 
State tax liability 1,963  1,118 
Net operating loss and credit carryforward —  87 
Stock compensation 1,009  905 
UNICAP 4,489  1,677 
Goodwill and intangibles 331  606 
Basis difference in investments 499  108 
Deferred tax asset 26,954  11,744 
Less: Valuation allowance —  (128)
Deferred tax asset, net 26,954  11,616 
 
Deferred tax liabilities
Right-of-use asset (4,160) (3,321)
Basis difference in fixed assets and intangible assets (1,990) (1,025)
Warranty receivables (7,235) — 
Deferred tax liability (13,385) (4,346)
 
Net deferred tax asset $ 13,569  $ 7,270