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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended
--- | ---
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019
Income Tax Disclosure [Abstract] |  |  |
Income Taxes | INCOME TAXES On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, as a response to the economic uncertainty resulting from the COVID-19 pandemic, which, among other things, included several temporary changes to corporate income tax provisions. The CARES Act did not have a significant impact on our expense for income taxes for the year ended December 31, 2020. Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 47,688 |  |  | $ | 20,968 |  |  | $ | 15,980 |
State | 5,282 |  |  | 4,162 |  |  | 2,810 |
Total current income tax expense | 52,970 |  |  | 25,130 |  |  | 18,790 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | (604) |  |  | (354) |  |  | 774 |
State | 239 |  |  | 240 |  |  | 463 |
Total deferred income tax expense | (365) |  |  | (114) |  |  | 1,237 |
Total income tax expense | $ | 52,605 |  |  | $ | 25,016 |  |  | $ | 20,027 |
Effective Income Tax Rate Reconciliation The income tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21% for each of the years ended December 31, 2021, 2020 and 2019, respectively, to income before income taxes as a result of the following (amounts in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Tax on pre-tax book income (before reduction of noncontrolling interests) | $ | 53,967 |  |  | $ | 29,991 |  |  | $ | 17,709 |
Tax effect of non-controlled earnings | (2,976) |  |  | (862) |  |  | (1,252) |
State income tax expense, net of federal benefit | 4,425 |  |  | 3,606 |  |  | 2,706 |
Adjustments to deferred tax assets related to state net operating losses | — |  |  | — |  |  | 1,063 |
Change in valuation allowance | — |  |  | — |  |  | (1,063) |
Tax credits | (3,629) |  |  | (8,088) |  |  | — |
Other | 818 |  |  | 369 |  |  | 864 |
Total income tax expense | $ | 52,605 |  |  | $ | 25,016 |  |  | $ | 20,027 |
Effective income tax rate | 20.5 | % |  | 17.5 | % |  | 23.7 | %
The change in the effective tax rate for year ended December 31, 2021 relates primarily to the impact of projected noncontrolling interest for the year and a tax benefit from the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (“the 2019 Act”). The 2019 Act retroactively reinstated the federal energy efficient homes tax credit that expired on December 31, 2017 to homes closed from January 1, 2018 to December 31, 2020. In December 2020, Congress approved the Taxpayer Certainty and Disaster Tax Relief Act of 2020, which extended the federal energy efficient homes tax credit through December 31, 2021. Deferred Income Taxes The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands):
| December 31, 2021 |  | December 31, 2020
Deferred tax assets: |  |  |
Basis in partnerships | $ | 6,867 |  |  | $ | 8,163 |
Accrued expenses | 4,404 |  |  | 2,979 |
Inventory | 2,956 |  |  | 2,585 |
Change in fair value of contingent consideration | 1,240 |  |  | 1,385 |
Lease liabilities - operating leases | 1,078 |  |  | 601 |
Stock-based compensation | 404 |  |  | 392 |
Other | 218 |  |  | 349 |
Deferred tax assets, gross | 17,167 |  |  | 16,454 |
Valuation allowance | — |  |  | — |
Deferred tax assets, net | $ | 17,167 |  |  | $ | 16,454 |
Deferred tax liabilities: |  |  |
Right-of-use assets - operating leases | $ | (1,060) |  |  | $ | (581) |
Prepaid insurance | (97) |  |  | (372) |
Other | (269) |  |  | (125) |
Deferred tax liabilities | $ | (1,426) |  |  | $ | (1,078) |
Total deferred income tax assets, net | $ | 15,741 |  |  | $ | 15,376 |
Uncertain Tax Positions The Company establishes accruals for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. In accordance with ASC 740, Income Taxes, the Company recognizes the effect of income tax positions only if those positions have a more-likely-than-not chance of being sustained by the Company. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2021. There were no expenses for interest and penalties related to uncertain tax positions for the years ended December 31, 2021, 2020, and 2019. There were no accrued liabilities related to uncertain tax positions as of December 31, 2021 and 2020, respectively. Statutes of Limitations The U.S. federal statute of limitations remains open for our 2018 and subsequent tax years. Due to the carryover of the federal net operating losses for years 2011 and forward, income tax returns going back to the 2011 tax year are subject to adjustment. The Colorado and Minnesota statutes of limitations remain open for our 2017 and subsequent tax years. The Nebraska statute of limitations remains open for our 2018 and subsequent tax years. The Company’s subsidiaries file returns in Texas, Georgia and Florida and Colorado. The Texas statute of limitations remains open for the 2017 and subsequent tax years. Any Texas adjustments relating to returns filed by the subsidiary partnerships would be borne by the subsidiary partnership entities. The Georgia statute of limitations remains open for the 2018 and subsequent tax years. Any Georgia adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Florida statute of limitations will remain open for the 2018 and subsequent tax years. Any Florida adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Company is not presently under examination by the Internal Revenue Service or state tax authority. |  |
Schedule of Components of Income Tax Expense (Benefit) | Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 47,688 |  |  | $ | 20,968 |  |  | $ | 15,980 |
State | 5,282 |  |  | 4,162 |  |  | 2,810 |
Total current income tax expense | 52,970 |  |  | 25,130 |  |  | 18,790 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | (604) |  |  | (354) |  |  | 774 |
State | 239 |  |  | 240 |  |  | 463 |
Total deferred income tax expense | (365) |  |  | (114) |  |  | 1,237 |
Total income tax expense | $ | 52,605 |  |  | $ | 25,016 |  |  | $ | 20,027 |
Schedule of Deferred Tax Assets and Liabilities | The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands):
| December 31, 2021 |  | December 31, 2020
Deferred tax assets: |  |  |
Basis in partnerships | $ | 6,867 |  |  | $ | 8,163 |
Accrued expenses | 4,404 |  |  | 2,979 |
Inventory | 2,956 |  |  | 2,585 |
Change in fair value of contingent consideration | 1,240 |  |  | 1,385 |
Lease liabilities - operating leases | 1,078 |  |  | 601 |
Stock-based compensation | 404 |  |  | 392 |
Other | 218 |  |  | 349 |
Deferred tax assets, gross | 17,167 |  |  | 16,454 |
Valuation allowance | — |  |  | — |
Deferred tax assets, net | $ | 17,167 |  |  | $ | 16,454 |
Deferred tax liabilities: |  |  |
Right-of-use assets - operating leases | $ | (1,060) |  |  | $ | (581) |
Prepaid insurance | (97) |  |  | (372) |
Other | (269) |  |  | (125) |
Deferred tax liabilities | $ | (1,426) |  |  | $ | (1,078) |
Total deferred income tax assets, net | $ | 15,741 |  |  | $ | 15,376 |
Schedule of Effective Tax Rate Reconciliation | Effective Income Tax Rate Reconciliation The income tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21% for each of the years ended December 31, 2021, 2020 and 2019, respectively, to income before income taxes as a result of the following (amounts in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Tax on pre-tax book income (before reduction of noncontrolling interests) | $ | 53,967 |  |  | $ | 29,991 |  |  | $ | 17,709 |
Tax effect of non-controlled earnings | (2,976) |  |  | (862) |  |  | (1,252) |
State income tax expense, net of federal benefit | 4,425 |  |  | 3,606 |  |  | 2,706 |
Adjustments to deferred tax assets related to state net operating losses | — |  |  | — |  |  | 1,063 |
Change in valuation allowance | — |  |  | — |  |  | (1,063) |
Tax credits | (3,629) |  |  | (8,088) |  |  | — |
Other | 818 |  |  | 369 |  |  | 864 |
Total income tax expense | $ | 52,605 |  |  | $ | 25,016 |  |  | $ | 20,027 |
Effective income tax rate | 20.5 | % |  | 17.5 | % |  | 23.7 | %
Operating Loss Carryforwards [Line Items] |  |  |
Basis in partnerships | $ 6,867 | $ 8,163 |
Deferred tax assets | 17,167 | 16,454 |
Deferred Tax Assets, Valuation Allowance | 0 | 0 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ (3,629) | $ (8,088) | $ 0

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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