KB Home (KBH) has disclosed a new risk, in the Taxation & Government Incentives category.
KB Home faces significant tax-related risks that could impact its financial stability. Legislative changes, such as the 2022 Inflation Reduction Act, have already altered the landscape by tying federal tax credits to stringent ENERGY STAR certification, particularly affecting KB Home’s California projects. The company’s quarter four earnings reflect the adverse effects of new IRS guidance, and future regulatory shifts could further jeopardize tax credit realization and inflate tax expenses. Additionally, the valuation of deferred tax assets is vulnerable to income fluctuations and tax law amendments, potentially leading to material adverse effects on KB Home’s consolidated financial statements.
Overall, Wall Street has a Hold consensus rating on KBH stock based on 4 Buys, 1 Sell and 7 Holds.
To learn more about KB Home’s risk factors, click here.
