INCOME TAXES

PBF Holding is a limited liability company treated as a “flow-through” entity for income tax purposes. Accordingly, there is generally no benefit or expense for federal or state income tax in the PBF Holding financial statements apart from the income tax attributable to two subsidiaries acquired in connection with the acquisition of Chalmette Refining and PBF Ltd. that are treated as C-Corporations for income tax purposes.

The reported income tax (benefit) expense in the PBF Holding Consolidated Statements of Operations consists of the following:



(in millions)	December 31, 2019			December 31, 2018		December 31, 2017
Current income tax expense	$	0.5		$	0.8	$	1.7
Deferred income tax (benefit) expense	(8.8		)	7.2		(12.5		)
Total income tax (benefit) expense	$	(8.3	)	$	8.0	$	(10.8	)

A summary of the components of PBF Holding’s deferred tax assets and deferred tax liabilities consists of the following:



(in millions)	December 31, 2019			December 31, 2018
Deferred tax assets
Net operating loss carry forwards	$	1.8		$	—
Other	0.4			1.1
Total deferred tax assets	2.2			1.1
Valuation allowances	—			—
Total deferred tax assets, net	2.2			1.1

Deferred tax liabilities
Property, plant and equipment	17.3			15.8
Inventory	16.3			25.7
Total deferred tax liabilities	33.6			41.5
Net deferred tax liability	$	(31.4	)	$	(40.4	)

Tax Cuts and Jobs Act

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax, a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

In connection with the enactment of the TCJA, PBF Energy recognized the measurement of the tax effects related to the TCJA noting that the recognized amounts pertaining to the PBF Holding subsidiaries noted above were not material.