The temporary items that give rise to the net deferred tax liability as of December 31, 2017
and 2016 were as follows:
(in thousands) 2017 2016
Liabilities:
Property-related, net $ 19,967 $ 27,599
Other 373 363
Total liabilities 20,340 28,162
Assets:
Pension accrued liability 1,186 1,55$
Net operating loss carryforward 5,042 4,480
Alternative minimum tax credit 476 476
NH Business Enterprise Tax credits 853 727
Other 789 782
8,346 8,020
Less valuation allowance (853) (727)
Total assets 7,493 7,293
Net non-current deferred income tax liability $ 12,847 $ 20,869
The Company had a federal net operating loss in 2017 and 2016 in the amounts of
approximately $6.7 million and $1.6 million, respectively. The federal tax benefit of the
cumulative net operating loss is approximately $3.8 million which begins to expire in 2032,
and is included in deferred income taxes in the Consolidated Balance Sheet as of
December 31, 2017.
The Company also had a New Hampshire net operating loss in 2017 and 2016 in the amounts
of approximately $7.3 million and $2.5 million, respectively. The New Hampshire tax benefit
of the cumulative net operating loss is approximately $1.2 million which begins to expire in
2022, and is included in deferred income taxes in the Consolidated Balance Sheet as of
December 31, 2017.
As of December 31, 2017 and 2016, it is estimated that approximately $476,000 and
$476,000, respectively, of cumulative federal alternative minimum tax credits may be carried
forward indefinitely as a credit against our regular tax liability.
As of December 31, 2017 and 2016, the Company had New Hampshire Business Enterprise
Tax (“NHBET”) credits of approximately $853,000 and $727,000, respectively. NHBET
credits begin to expire in 2018. It is anticipated that these NHBET credits will not be fully
utilized before they expire; therefore, a valuation allowance has been recorded related to
these credits. The valuation allowance increased by $126,000 and $358,000 in the years
ended December 31, 2017 and 2016, respectively.
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