Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefits)
The provision for income taxes are as follows:
Year Ended December 31,
2023 2022 2021
(dollars in thousands)
Current:
Federal $ 12,418  $ 22,350  $ 11,507 
State 4,394  9,350  5,314 
Current tax provision 16,812  31,700  16,821 
 
Deferred:
Federal (3,967) (4,681) (2,425)
State (950) (1,619) (401)
Deferred tax benefit (4,917) (6,300) (2,826)
 
Total income tax provision, net $ 11,895  $ 25,400  $ 13,995 
Schedule of Effective Income Tax Rate Reconciliation
The provision 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,
2023 2022 2021
Federal income tax expense 21.0  % 21.0  % 21.0  %
State income tax expense, net of federal tax effect 5.6  6.4  5.6 
162(m) limitation 1.9  1.0  (1.3)
PPP loan —  —  1.8 
Fair market value of warrant —  1.5  (0.7)
Noncontrolling interest (1.8) (0.5) — 
Energy efficient home credits (1.4) (3.6) (6.2)
Other permanent differences 0.4  —  0.1 
Return to provision adjustment (0.4) (0.7) 0.4 
Rate change 1.0  (0.1) 0.1 
Change of valuation allowance —  (0.1) 0.2 
Other 0.4  0.2  — 
Effective tax rate 26.7  % 25.1  % 21.0  %
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,
2023 2022
(dollars in thousands)
Deferred tax assets
Accrued expenses $ 16,519  $ 14,279 
Lease liability 3,371  4,384 
State tax liability 963  1,963 
Allowances, reserves, and other 244  — 
Stock compensation 948  1,009 
UNICAP 6,967  4,489 
Goodwill and intangibles —  331 
Basis difference in investments 2,699  499 
Deferred tax asset 31,711  26,954 
 
Deferred tax liabilities
Right-of-use asset (3,061) (4,160)
Basis difference in fixed assets and intangible assets (3,097) (1,990)
Warranty receivables (7,067) (7,235)
Deferred tax liability (13,225) (13,385)
 
Net deferred tax asset $ 18,486  $ 13,569