INCOME TAXES

The Company’s federal and state income tax provision from continuing operations for the three months and nine months ended September 30, 2018 and 2017 is summarized in the following table (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Current
Federal	$	—	$	(925	)	$	—	$	(925	)
State	50		378			84		528
Total current	50		(547		)	84		(397		)
Deferred
Federal	—		515			—		1,523
State	52		92			107		271
Total deferred	52		607			107		1,794
Total income tax expense	$	102	$	60		$	191	$	1,397

The Company’s reconciliation of the statutory rate from continuing operations to the effective income tax rate for the three months and nine months ended September 30, 2018 and 2017 is summarized as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Tax benefit at statutory rate	$	(1,680	)	$	(4,307	)	$	(7,564	)	$	(20,543	)
State tax expense, net of federal taxes	102			378			191			528
Alternative Minimum Tax receivable	—			(925		)	—			(925		)
Valuation allowance changes affecting income tax provision	1,261			4,876			7,163			22,194
Permanent items	419			38			401			143
Income tax expense	$	102		$	60		$	191		$	1,397

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 or U.S. Federal Tax Reform (the “Reform”). The enactment included broad tax changes that are applicable to BioScrip, Inc. Most notably, the Reform decreased the U.S. corporate income tax rate from a high of 35% to a flat 21% rate effective January 1, 2018. As a result, the Company has revalued its ending net deferred tax assets as of December 31, 2017. At September 30, 2018, the Company had Federal net operating loss (“NOL”) carry forwards of approximately $427.0 million, of which $10.8 million is subject to an annual limitation, which will begin expiring in 2026 and later. The Company also has a carryforward of approximately $37.1 million related to the interest expense limitation, which is not subject to an expiration period. The Company has post-apportioned state NOL carry forwards of approximately $467.1 million, the majority of which will begin expiring in 2018 and later.