Note 9 — Income Taxes
The components of the federal and state income tax provision (benefit) as of December 31,
2016 and 2015 were as follows:
(in thousands) 2016 2015
Federal $ 284 $ (79)
State (116) 420
Amortization of investment tax credits (33) (33)
Total $ 135 $ 308
Current $ - $ (1)
Deferred 135 309
Total $ 135 $ 308
The following is a reconciliation between the statutory federal income tax rate and the
effective income tax rate for 2016 and 2015:
2016 2015
Statutory federal rate 34.0% 34.0%
State tax rate, net of federal benefits 5.4% 5.6%
Permanent differences 54.8% -56.8%
Amortization of investment tax credits 3.0% 1.7%
Effective tax rate -12.4% -15.5%
The temporary items that give rise to the net deferred tax liability as of December 31, 2016
and 2015 were as follows:
(in thousands) 2016 2015
Liabilities:
Property-related, net $ 27,599 $ 26,890
Other 563 443
Total liabilities 28,162 27,333
Assets:
Pension accrued liability 1,555 1,426
Net operating loss carryforward 4,480 3,884
Alternative minimum tax credit 476 476
NH Business Enterprise Tax credits 727 369
Other 782 905
8,020 7,060
Less valuation allowance (727) (369)
Total assets 7,293 6,691
Net non-current deferred income tax liability $ 20,869 $ 20,642
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