NOTE 8 — Income Taxes

The current and deferred income tax (expense) benefit from continuing operations is as follows:

	Years ended December 31,
	2013			2012			2011
Current:
Federal	$	(1,869,000	)	$	(136,000	)	$	—
State	(892,000		)	(866,000		)	(803,000		)
	(2,761,000		)	(1,002,000		)	(803,000		)
Deferred:
Federal	773,000			(2,520,000		)	4,737,000
State	63,000			31,000			159,000
	836,000			(2,489,000		)	4,896,000
Total income tax (expense) benefit	$	(1,925,000	)	$	(3,491,000	)	$	4,093,000

A reconciliation of the effective income tax rate with the applicable statutory federal income tax rate is as follows:

	Years ended December 31,
	2013		2012		2011
Federal tax at statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	13.4	%	6.9	%	3.4	%
Valuation allowance	0.1	%	(0.4	)%	(6.4	)%
Non-deductible stock based compensation	1.6	%	1.6	%	—
Other	(1.4	)%	0.2	%	(1.0	)%
Effective income tax rate	48.7	%	43.3	%	31.0	%

Deferred income tax assets and liabilities are comprised of the following as of December 31:

	2013			2012
Deferred income tax assets:
Accruals not currently deductible for income taxes	$	1,846,000		$	2,429,000
Net operating loss carry-forwards	11,070,000			13,947,000
Total deferred income tax assets	12,916,000			16,376,000

Deferred income tax liabilities:
Depreciation	(19,070,000		)	(20,739,000		)
	(19,070,000		)	(20,739,000		)
Valuation allowance	(10,360,000		)	(12,165,000		)
Net deferred income tax liability	$	(16,514,000	)	$	(16,528,000	)

Amounts recognized in the consolidated balance sheets:
Current deferred income tax assets	$	76,000		$	78,000
Noncurrent deferred income tax assets	336,000			490,000
Noncurrent deferred income tax liabilities	(16,926,000		)	(17,096,000		)
	$	(16,514,000	)	$	(16,528,000	)

Deferred income taxes relate to the temporary differences between financial accounting income and taxable income and are primarily attributable to differences between the book and tax basis of property and equipment and net operating loss carry-forwards (expiring through 2033). At December 31, 2013, we have available state net operating loss carryforwards of $217,062,000. Valuation allowances which fully reserve the state net operating loss carryforwards, net of federal tax benefit, (decreased) increased in 2013, 2012 and 2011 by ($1,805,000), ($24,000) and $1,777,000, respectively.

Interest expense on uncertain income tax positions is recorded as a component of interest expense. The uncertain income tax positions related to the appropriate period to depreciate certain of our assets and do not affect our effective income tax rate or our reported earnings. During 2011, our liability relating to uncertain income tax positions decreased by $1,241,000 from the expiration of the statute of limitations.

No interest expense was recorded on our uncertain income tax positions in 2013, 2012 or 2011. During 2011, we reversed $122,000 of previously recorded interest expense on uncertain income tax positions which are no longer subject to examination. There is no accrued interest on uncertain income tax positions as of December 31, 2013 or 2012.

The following table sets forth the changes in our uncertain income tax positions for the years ended December 31, 2013, 2012 and 2011:

	2013		2012		2011
Uncertain income tax positions at beginning of year	$	—	$	—	$	1,241,000
Increases as a result of tax positions taken during prior years	—		—		—
Decreases as a result of tax positions taken during prior years	—		—		—
Decreases as a result of lapse of statute of limitations	—		—		(1,241,000		)
Uncertain income tax positions at end of year	$	—	$	—	$	—

We file income tax returns with the Internal Revenue Service (“IRS”) and the states in which we conduct business. We have identified the U.S. federal and state of Delaware as our major tax jurisdictions. As of December 31, 2013, tax years after 2009 remain open to examination for federal and Delaware income tax purposes.