Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The provisions for income taxes consist of:

	2019			2018
Federal current	$	1,148		$	1,715
State current		451			718
Federal deferred		475			216
State deferred		205			(119	)
Federal investment tax credit, net of current utilization		(39	)		(39	)
Total income taxes	$	2,240		$	2,491

Reconciliation of Statutory Federal Tax Provision to Total Provision

A reconciliation of the statutory Federal tax provision to the total provision follows:

	2019			2018
Statutory Federal tax provision	$	3,495		$	3,332
State income taxes, net of Federal benefit		574			471
IRS TPR deduction		(1,642	)		(1,307	)
Tax-exempt interest		(25	)		(22	)
Amortization of investment tax credit		(39	)		(39	)
Cash value of life insurance		6			(13	)
Amortization of excess accumulated deferred income taxes on accelerated depreciation		(149	)		–
Other, net		20			69
Total income taxes	$	2,240		$	2,491

Deferred Tax Assets and Liabilities

The tax effects of temporary differences between book and tax balances that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018 are summarized in the following table:

	2019		2018
Deferred tax assets:
Reserve for doubtful accounts	$	88	$	88
Compensated absences		148		147
Deferred compensation		1,276		1,143
Excess accumulated deferred income taxes on accelerated depreciation		4,047		4,098
Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences		2,104		2,077
Customers' advances for construction and contributions in aid of construction		998		577
Revenue reduction for tax rate change		7		333
Pensions		–		256
Other costs deducted for book, not for tax		69		40
Total deferred tax assets		8,737		8,759

Deferred tax liabilities:
Accelerated depreciation		28,891		28,479
Basis differences from IRS TPR		11,311		9,367
Investment tax credit		384		411
Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences		6,987		6,124
Pensions		525		–
Tax effect of pension regulatory asset		106		887
Unamortized debt issuance costs		531		197
Other costs deducted for tax, not for book		428		256
Total deferred tax liabilities		49,163		45,721

Net deferred tax liability	$	40,426	$	36,962