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Income Taxes
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The provision (benefit) for income taxes includes the following:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
(Dollars in thousands)
Current provision (benefit) for income taxes:
 
 
 
 
 
Federal
$
(67
)
 
$
10,243

 
$
10,321

State
304

 
3,030

 
3,375

 
237

 
13,273

 
13,696

Deferred provision (benefit) for income taxes:
 
 
 
 
 
Federal
(4,208
)
 
2,341

 
(506
)
State
(2,104
)
 
(224
)
 
(166
)
 
(6,312
)
 
2,117

 
(672
)
Provision (benefit) for income taxes
$
(6,075
)
 
$
15,390

 
$
13,024



The effective tax rate differs from the federal statutory rate of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016, due to the following items:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
(Dollars in thousands)
Income (loss) before taxes of taxable entities
$
(20,305
)
 
$
32,531

 
$
33,950

(Provision) benefit for income taxes at federal statutory rate
$
4,264

 
$
(11,386
)
 
$
(11,883
)
(Increases) decreases in tax resulting from:
 
 
 
 
 
Provisional rate adjustment - tax reform
148

 
(3,190
)
 
—

State income taxes, net of federal benefit
1,396

 
(1,860
)
 
(1,977
)
Manufacturing deduction
—

 
958

 
1,142

Return to provision difference
388

 
159

 
(145
)
Other
(121
)
 
(71
)
 
(161
)
(Provision) benefit for income taxes
$
6,075

 
$
(15,390
)
 
$
(13,024
)
Effective tax rate
29.9
%
 
47.3
%
 
38.4
%

With the enactment of the Tax Cuts and Jobs Act (the "Tax Act"), the corporate federal income tax rate dropped from a maximum of 35% to a flat 21% rate effective January 1, 2018. The SEC staff issued Staff Accounting Bulletin 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act and provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. As of December 31, 2017, we had completed the majority of our accounting for the tax effects of the Tax Act. As a result of the rate change, the Company was required to revalue its net deferred tax asset at December 31, 2017 and recorded a provisional adjustment to reduce its value by $3.2 million. The Company completed its accounting for the tax effects of the Tax Act in 2018, within the one-year measurement period prescribed by the SEC, and recorded a $0.1 million adjustment to the provisional amount.
    
The components of our deferred income tax asset, net are as follows:
 
December 31,
 
2018
 
2017
 
(Dollars in thousands)
State taxes
$
74

 
$
633

Reserves and accruals
2,258

 
1,893

Intangible assets
28

 
207

Share based compensation
1,594

 
1,585

Inventory
3,699

 
627

Investments in joint ventures
6,318

 
1,411

Depreciation and amortization
(34
)
 
(39
)
Deferred tax asset, net
$
13,937

 
$
6,317


The Company classifies any interest and penalties related to income taxes assessed as part of income tax provision. The Company has concluded that there were no significant uncertain tax positions requiring recognition in its financial statements, nor has the Company been assessed interest or penalties by any major tax jurisdictions related to any open tax periods. We are subject to U.S. federal income tax examination for calendar tax years ending 2015 through 2018 and various state income tax examinations for 2014 through 2018 calendar tax years.