NOTE 6 — Income Taxes

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


	Years ended December 31,
	2020		2019		2018
Current:
Federal	$	(1,975,000)	$	(1,251,000)	$	(2,461,000)
State		(515,000)		(122,000)		(683,000)
		(2,490,000)		(1,373,000)		(3,144,000)
Deferred:
Federal		(29,000)		(219,000)		929,000
State		2,581,000		(194,000)		37,000
		2,552,000		(413,000)		966,000
Total income tax benefit (expense)	$	62,000	$	(1,786,000)	$	(2,178,000)

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


	Years ended December 31,
	2020		2019		2018
Federal tax at statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	15.4	%	65.8	%	19.8	%
Valuation allowance	(37.4)	%	(62.4)	%	(14.2)	%
Other	0.2	%	0.1	%	(2.6)	%
Effective income tax rate	(0.8)	%	24.5	%	24.0	%

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


	2020		2019
Deferred income tax assets:
Accruals not currently deductible for income taxes	$	1,857,000	$	1,905,000
Net operating loss carry-forwards		2,773,000		2,989,000
Total deferred income tax assets		4,630,000		4,894,000
Valuation allowance		(363,000)		(2,462,000)
Net deferred income tax assets		4,267,000		2,432,000

Deferred income tax liabilities:
Depreciation		(10,311,000)		(11,108,000)
Total deferred income tax liabilities		(10,311,000)		(11,108,000)
Net deferred income tax liability	$	(6,044,000)	$	(8,676,000)

Amounts recognized in the consolidated balance sheets:
Noncurrent deferred income tax assets	$	2,425,000	$	—
Noncurrent deferred income tax liabilities		(8,469,000)		(8,676,000)
	$	(6,044,000)	$	(8,676,000)

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 2032). At December 31, 2020, we have available state net operating loss carryforwards of $54,000,000. Valuation allowances which reserved a portion of the state net operating loss carryforwards, net of federal tax benefit, decreased in 2020, 2019, and 2018 by $2,099,000, $4,543,000 and $1,286,000, respectively.

We recognize interest expense and penalties on uncertain income tax positions as a component of interest expense. No interest expense or penalties were recorded for uncertain income tax matters in 2020, 2019 or 2018. As of December 31, 2020 and 2019, we had no liabilities for uncertain income tax matters.

We file income tax returns with the Internal Revenue Service 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, 2020, tax years after 2016 remain open to examination for federal and Delaware income tax purposes.