9. Income Taxes

The components of the income tax provision are as follows (dollars in thousands):


	For the Year Ended
	December 31,
	2016		2015		2014
Current
Federal	$	—	$	—	$	—
State and local		(741)		(601)		(941)
		(741)		(601)		(941)
Deferred
Federal		1,160		1,726		6,081
State and local		172		232		770
		1,332		1,958		6,851
Total income tax provision	$	591	$	1,357	$	5,910

The income tax provision differs from the amounts determined by applying the statutory federal income tax rate of 34% to the income before income tax provision for the following reasons (dollars in thousands):


	For the Year Ended
	December 31,
	2016		2015		2014
Income tax at federal rate	$	577	$	835	$	4,763
Increase (decrease) resulting from:
State income taxes, net of federal income tax		101		104		592
Permanent difference for compensation limitation		—		637		595
Expense not deductible for tax		292		98		415
Tax credit included in taxable income		283		252		327
Other permanent differences		20		110		47
Capital goods excise tax credit		(741)		(601)		(942)
Other, net		74		54		51
Change in valuation allowance		(15)		(132)		62
Total income tax provision	$	591	$	1,357	$	5,910

Deferred income taxes consisted of the following (dollars in thousands):


	December 31,
	2016		2015
Deferred tax liabilities:
Property and equipment	$	46,965	$	46,636
Other basis differences		533		542
		47,498		47,178
Deferred tax assets:
Net operating loss and credit carryforwards		66,580		55,043
Intangible assets		30,913		41,678
Expenses deferred for tax		5,347		5,638
Employee benefits		33,434		31,423
Other basis differences		3,730		3,642
		140,004		137,424
Valuation allowance		(335)		(350)
		139,669		137,074
Deferred tax asset, net	$	92,171	$	89,896

As of December 31, 2016, net operating losses available for carry forward through 2036 amounted to $166.5 million for federal purposes and $172.5 million for state purposes. Availability of net operating losses in future periods may be subject to additional limitations if there is a deemed change in control for income tax reporting purposes. Such change in control will be determined for income tax reporting purposes based on future changes in stock ownership. In addition to the net operating losses disclosed previously, there was $1.4 million and $1.4 million of excess tax deductions available at December 31, 2016 and 2015, respectively, related to employee stock expense for which a benefit will be recorded to additional paid-in capital when realized.

The valuation allowance is related to charitable loss carry forwards subject to deduction limitations. If there is a decline in the level of actual future or forecasted earnings, the conclusion regarding the need for a valuation allowance may change in future periods resulting in the establishment of a valuation allowance for some or all of the deferred income tax assets. The following is a summary of activity for the valuation allowance (dollars in thousands):


			Charge (Credit)
			to Income Tax
	Beginning		Expense or		Ending
	Balance		Equity		Balance
January 1 to December 31, 2016	$	350	$	(15)	$	335
January 1 to December 31, 2015		482		(132)		350
January 1 to December 31, 2014		420		62		482

The Company evaluates its tax positions for liability recognition. As of December 31, 2016, 2015 and 2014, the Company had no unrecognized tax benefit. No interest or penalties related to tax assessments were recognized in the Company’s consolidated statements of income for the years ended December 31, 2016, 2015 or 2014. All tax years from 2013 remain open for both federal and Hawaii state purposes.