In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “TCJ Act”). The TCJ Act made broad and complex changes to the U.S. tax code, including, but not limited to, the following that impact us: (1) reducing the U.S. federal corporate rate from 35 percent to 21 percent; (2) limiting the deductibility of certain executive compensation; (3) imposing a new tax on global intangible low-taxed income; and (4) limiting certain other deductions.

The 2019 and 2018 effective tax rates utilize the reduced 21% tax rate due to the TCJ Act while the 2017 effective tax rate utilizes the prior 35% tax rate but reflects the revaluation of deferred taxes due to the TCJ Act’s enactment.

The 2019 effective tax rate is lower than the 2018 effective tax rate primarily due to the tax benefit derived from the approval of a tax accounting method change for the 2017 taxable year which redetermined the tax allocation methodology for cost of sales associated with inventory. Due to the TCJ Act of 2017, the federal income tax rate was reduced from 35% to 21%, resulting in a tax rate benefit of $18 million.

Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income before taxes were as follows:

	Year Ended December 31,
($ in millions)	2019		2018		2017
U.S. income before tax	$	234	$	380	$	283
Foreign income before tax		39		23		28
Income before taxes	$	273	$	403	$	311

	Year Ended December 31,
($ in millions)	2019			2018			2017
Current:
Federal	$	37		$	62		$	94
State		9			15			11
Foreign		8			8			8
Total current		54			85			113
Deferred:
Federal		3			17			(137	)
State		1			4			8
Foreign		(1	)		(1	)		—
Total deferred		3			20			(129	)
Total provision for income taxes	$	57		$	105		$	(16	)

Reconciliations of our tax provision at the U.S. statutory rate to the provision for income taxes were as follows:

	Year Ended December 31,
($ in millions)	2019			2018			2017
Statutory U.S. federal income tax provision	$	57		$	85		$	109
State and local income taxes, net of U.S. federal tax benefit		11			19			12
Impact of foreign operations		1			2			—
Interest on installment sales, net of U.S. federal tax benefit		4			3			3
Interest on installment sales adjustment		—			—			(5	)
Effects of the TCJ Act		—			(4	)		(133	)
Tax accounting method change		(18	)		—			—
Other		2			—			(2	)
Provision for income taxes	$	57		$	105		$	(16	)

Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items.

	December 31,
($ in millions)	2019			2018
Deferred income tax assets	$	2		$	1
Deferred income tax liabilities		(259	)		(255	)
Net deferred taxes	$	(257	)	$	(254	)

The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax liability were as follows:

	December 31,
($ in millions)	2019			2018
Deferred tax assets:
Compensation	$	12		$	11
Domestic tax loss and credit carryforwards		4			2
Foreign tax loss carryforwards		1			—
Other reserves		86			57
		103			70
Valuation allowance		(4	)		(2	)
Deferred tax assets		99			68
Deferred tax liabilities:
Property and equipment		(87	)		(46	)
Amortizable intangible assets		(9	)		(10	)
Deferred income		(259	)		(266	)
Other liabilities		(1	)		—
Deferred tax liabilities		(356	)		(322	)
Net deferred taxes	$	(257	)	$	(254	)

Tax loss and credit carryforwards as of December 31, 2019 have expiration dates ranging between 8 years and no expiration in certain instances. The amount of foreign tax loss carryforwards as of December 31, 2019 and December 31, 2018 were $2 million and $1 million, respectively. The amount of state tax loss carryforwards as of December 31, 2019 was $8 million. There were no state tax loss carryforwards as of December 31, 2018. The amount of federal tax credit carryforwards as of December 31, 2019 and December 31, 2018 were $3 million and $2 million, respectively.

The valuation allowance increased $2 million to $4 million as of December 31, 2019. The valuation allowance has been established for financial reporting purposes to offset certain federal and state deferred tax assets due to uncertainty regarding our ability to realize them in the future.