Note 9 — Income Taxes
The components of the federal and state income tax provision (benefit) as of December 31,
2015 and 2014 were as follows:
(in thousands) 2015 2014
Federal $ (79) $ 343
State 420 24]
Amortization of investment tax credits G3} (33)
Total $ 308 $ 551
Current $ (1) $ (33)
Deferred 309 584
Total $ 308 $ 551
The following is a reconciliation between the statutory federal income tax rate and the
effective income tax rate for 2015 and 2014:
2015 2014
Statutory federal rate 34.0% 34.0%
State tax rate, net of federal benefits 5.6% 5.6%
Permanent differences 56.8% -87.3%
Amortization of investment tax credits 1.7% 2.7%
Effective tax rate -15.5% 45.0%
The temporary items that give rise to the net deferred tax liability as of December 31, 2015
and 2014 were as follows:
{in thousands) 2015 2014
Liabilities:
Property-related, net $ 26,890 $ 25,626
Pension deferred asset - 2,641
Other 443 1,061
Total liabilities 27,333 29,328
Assets:
Pension accrued liability 1,426 3,176
Net operating loss carry forward 3,884 2,399
Altemative minimum tax credit 476 476
NH Business Enterprise Tax credits 369 369
Other 905 2,574
7,060 8,994
Less valuation allowance (369) -
Total assets 6,691 8,994
Net non-current deferred income tax liability $ 20,642 $ 20,334
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