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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense (benefit) consisted of the following:
 FederalStateTotal
2022   
Current$1,857 $3 $1,860 
Deferred4,726 (211)4,515 
Total income tax$6,583 $(208)$6,375 
2021   
Current$— $3,446 $3,446 
Deferred3,322 (2,676)646 
Total income tax$3,322 $770 $4,092 
2020   
Current$— $3 $3 
Deferred14,692 (2,677)12,015 
Total income tax$14,692 $(2,674)$12,018 
The Company's 2022, 2021, and 2020 qualified tax repairs and maintenance deductions totaled $128.0 million, $125.5 million, and $164.0 million, respectively.
At December 31, 2022, the Company had U.S. federal and U.S. state tax net operating loss carry-forwards of approximately $46.4 million and $144.0 million respectively. The U.S. federal and U.S. state net operating loss carry-forwards will both expire at various dates beginning in tax year 2028.
The difference between the recorded and the statutory income tax expense is reconciled in the table below:
 202220212020
Statutory income tax$21,344 $22,065 $22,858 
Increase (reduction) in taxes due to:   
State income taxes net of federal tax benefit7,383 7,334 7,598 
Effect of regulatory treatment of fixed asset differences(6,274)(6,327)(9,201)
Investment tax credits(74)(74)(74)
AFUDC equity(1,155)(891)(1,392)
Stock based stock compensation455 791 523 
TCJA refund(13,919)(19,417)(9,470)
Other(1,385)611 1,176 
Total income tax$6,375 $4,092 $12,018 
The effect of regulatory treatment of fixed asset differences includes estimated repair and maintenance deductions and asset related flow through items.
On December 22, 2017, the U.S. government enacted expansive tax legislation commonly referred to as the TCJA. Among other provisions, the TCJA reduces the federal income tax rate from 35 percent to 21 percent beginning on January 1, 2018 and eliminated bonus depreciation for utilities. The TCJA required the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate.
As of December 31, 2022, the TCJA refund liability was $108.4 million. The Company continues working with other state regulators to finalize the refund to confirm compliance with federal normalization rules.
The deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021, are presented in the following table:
 20222021
Deferred tax assets:  
Developer deposits for contributions in aid of construction$31,589 $31,777 
Net operating loss carry-forward and tax credits18,329 29,206 
Pension liability13,860 13,570 
Income tax regulatory liability22,838 26,565 
Operating leases liabilities4,170 4,310 
Other4,264 2,439 
Total deferred tax assets95,050 107,867 
Deferred tax liabilities:  
Property related basis and depreciation differences393,007 362,139 
WRAM/MCBA and interim rates balancing accounts14,192 22,124 
Operating lease-right to use asset4,130 4,286 
Other13,972 13,965 
Total deferred tax liabilities425,301 402,514 
Net deferred tax liabilities$330,251 $294,647 
Based on historical taxable income and future taxable income projections over the period in which the deferred assets are deductible, management believes it is more likely than not that the Company will realize the benefits of the deductible differences.
The following table reconciles the changes in unrecognized tax benefits for the periods ended December 31 2022, 2021, and 2020:
 202220212020
Balance at beginning of year$15,850 $13,960 $11,008 
Additions for tax positions taken during current year1,955 1,890 2,952 
Lapse of statute of limitations(4,199)— — 
Balance at end of year$13,606 $15,850 $13,960 
The Company does not expect a material change in its unrecognized tax benefits within the next 12 months. The component of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2022, was $4.4 million, with the remaining balance representing the potential deferral of taxes to later years.
The Company's federal income tax years subject to an examination are from 2017 to 2022 and the state income tax years subject to an examination are from 2012 to 2022.