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INCOME TAXES
3 Months Ended
Mar. 31, 2024
INCOME TAXES  
INCOME TAXES

14. INCOME TAXES

The provision for income tax expense for the three months ended March 31, 2024 and 2023 was $3,373 and $3,435 respectively. The effective tax rate for the three months ended March 31, 2024 and 2023 was 18.2% and 17.4%, respectively. These rates differ from the federal statutory rate of 21% primarily due to a federal tax credit for the sale of energy efficient homes under the Internal Revenue Code §45L, partially offset by state income taxes. The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and was extended through December 31, 2032 by the Inflation Reduction Act of 2022.