Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Components of the income tax provision are as follows (in thousands): 
  Three Months Ended September 30, Nine Months Ended September 30,
  2022 2021 2022 2021
Federal $ 54,114  $ 47,955  $ 177,577  $ 115,781 
State 12,888  13,002  39,665  27,572 
Total $ 67,002  $ 60,957  $ 217,242  $ 143,353 

The effective tax rate for the three and nine months ended September 30, 2022 was 20.3% and 22.9%, and for the three and nine months ended September 30, 2021 was 23.3% and 22.3%, respectively. The lower tax rate for the three months ended September 30, 2022 compared to the same period in 2021 is due to the retroactive extension of the new energy-efficient homes credits for homes closed in the first half of 2022, described below. The 2021 rates benefited from the Taxpayer Certainty and Disaster Tax Relief Act that was passed in December 2019 and expired on December 31, 2021.

On August 16, 2022, the Inflation Reduction Act of 2022 ("the IRA") was signed into law. The IRA retroactively extended the Internal Revenue Code ("IRC") §45L new energy-efficient homes federal tax credit to homes delivered from January 1, 2022 through December 31, 2032, and also modifies the energy standards required to qualify for the tax credit and increases the per-home credit amount starting in 2023. As a result of the adoption of the IRA, the effective tax rates for the three and nine months ended September 30, 2022 reflect the benefit of the new energy-efficient homes credits on qualifying homes we delivered during 2022. The IRA, among other provisions, also creates a 15% corporate alternative minimum tax on certain profits and a 1% excise tax on stock repurchases, which will be effective for us on January 1, 2023, and we do not expect to have a material impact on our consolidated financial statements.
At September 30, 2022 and December 31, 2021, we have no unrecognized tax benefits. We believe our current income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change. Our policy is to accrue interest and penalties on unrecognized tax benefits and include them in the provision for income taxes.
We determine our deferred tax assets and liabilities in accordance with ASC 740, Income Taxes. We evaluate our deferred tax assets, including the benefit from net operating losses ("NOLs"), by jurisdiction to determine if a valuation allowance is required. Companies must assess whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment considers, among other matters, the nature, frequency and severity of cumulative losses, forecasts of future profitability, the length of statutory carry forward periods, experiences with operating losses and experiences of utilizing tax credit carry forwards and tax planning alternatives. We have no valuation allowance on our deferred tax assets and no NOL carryovers at September 30, 2022.
At September 30, 2022, we have income taxes receivable of $3.7 million and no incomes tax payable. The income taxes receivable primarily consists of estimated tax payments, net of current federal and state tax accruals and current energy tax credits. This amount is recorded in Other receivables on the accompanying unaudited consolidated balance sheets at September 30, 2022.
We conduct business and are subject to tax in the U.S. both federally and in several states. With few exceptions, we are no longer subject to U.S. federal, state, or local income tax examinations by taxing authorities for years prior to 2017. We have no federal or state income tax examinations being conducted at this time.