The following table presents the income tax provision from continuing operations for the years ended December 31 as indicated:

	2019			2018
Current
Federal	$	(13,164	)	$	(153,610	)
State		334,307			597,909
		321,143			444,299
Deferred
Federal		2,638,158			1,779,574
State		304,072			(426,927	)
		2,942,230			1,352,647
Total	$	3,263,373		$	1,796,946

The following table presents the total income tax provision for the years ended December 31 as indicated:

The following table presents the temporary differences and carryforwards, which give rise to deferred tax assets and liabilities as of December 31 as indicated:

	2019			2018
Deferred tax assets
Accrued vacation	$	171,391		$	139,713
Acquisition costs capitalized		50,450			55,917
Accrued remediation costs		115,000			120,493
Net operating loss carryforwards		925,774			435,121
Sec 163(j) interest limitation		—			199,582
Federal depreciation in excess of state		813,542			635,202
Accrued payables		62,721			17,914
Percentage completed contract method for tax		90,241			1,557,437
Accrued workers’ compensation		90,795			205,150
Capitalized bidding costs		86,112			73,565
Inventory adjustments		141,838			263,680
Lease liability		1,677,962			15,199
Accrued contract losses		67,190			164,843
Other		5,152			4,097
Total deferred tax assets		4,298,168			3,887,913
Deferred tax liabilities
481 (a) adjustment for deferred revenue		—			(24,602	)
Tax amortization in excess of financial statement amortization		(17,347	)		(13,378	)
Tax depreciation in excess of financial statement depreciation		(11,624,772	)		(9,910,975	)
Right-of-use assets		(1,664,814	)		—
Total deferred tax liabilities		(13,306,933	)		(9,948,955	)
Total net deferred tax liabilities	$	(9,008,765	)	$	(6,061,042	)

As of December 31, 2019, the Company had net operating loss (“NOL”) carryforwards of approximately $4.4 million available to offset future federal taxable income. Current tax law allows for an indefinite carryforward of the NOL to use against future taxable income, subject to a limitation of 80 percent of taxable income each year.

As of December 31, 2019, the non-current deferred tax liabilities increased to $9.0 million from $6.1 million as of December 31, 2018 primarily due to additional tax depreciation in excess of book depreciation. Current tax law provides for the full expensing of certain depreciable property for 2018 and through 2022 and partial expensing through 2026.

The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which establishes the recognition requirements. Deferred tax assets and liabilities are recognized for the future tax effects attributable to temporary differences and carryforwards between the financial statement carrying amounts of existing assets and liabilities and the respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The carrying amounts of deferred tax assets are reduced by a valuation allowance, if based on the available evidence, it is more likely than not such assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the deferred tax assets are expected to be recovered or settled. In the assessment for a valuation allowance, appropriate consideration is given to positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability and tax planning alternatives. If the Company determines it will not be able to realize all or part of the deferred tax assets, a valuation allowance would be recorded to reduce deferred tax assets to the amount that is more likely than not to be realized.

Based on assumptions with respect to forecasts of future taxable income and tax planning, among others, the Company anticipates being able to generate sufficient taxable income to utilize the deferred tax assets. Therefore, the Company has not recorded a valuation allowance against deferred tax assets. The minimum amount of future taxable income required to be generated to fully realize the deferred tax assets as of December 31, 2019 is approximately $14.4 million.

The following table presents the differences between the Company’s effective income tax rate and the federal statutory rate on income from continuing operations for the years ended December 31 as indicated:

	2019			2018
Federal statutory rate		21.0	%		21.0	%
State tax rate, net of federal tax		4.2	%		4.0	%
Nondeductible expenses		6.2	%		5.4	%
Other		1.3	%		(4.1	)%
Total		32.7	%		26.3	%

The effective tax rate for 2018 was offset by true-ups to the prior year return and state rate changes of 6.6%. In addition, certain amounts associated with state tax permanent differences, previously reported under the caption “Other” in the effective tax rate reconciliation table above as of December 31, 2018, have been reclassified to conform to the December 31, 2019 presentation.

The Company had gross unrecognized tax benefits of $4,000 and $5,000 as of December 31, 2019 and 2018, respectively. The Company believes that it is reasonably possible that the liability for unrecognized tax benefits related to certain state income tax matters may be settled within the next twelve months. The federal statute of limitation has expired for tax years prior to 2016 and relevant state statutes vary. The Company is currently not under any income tax audits or examinations and does not expect the assessment of any significant additional tax in excess of amounts provided.

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years as indicated:

	2019			2018
Balance as of January 1	$	4,723		$	4,723
Increase from current year tax positions		—			—
Increase from prior years’ tax positions		—			—
Decrease from settlements with taxing authority		(723	)		—
Decrease from expiration of statute of limitations		—			—
Balance as of December 31	$	4,000		$	4,723

The Company accrues interest and penalties related to unrecognized tax benefits as interest expense and other general and administrative expenses, respectively, and not as a component of income taxes. Decreases in interest and penalties are due to settlements with taxing authorities and expiration of statutes of limitation. During the years ended December 31, 2019 and 2018, the Company recognized $1,000 each year in interest and penalties. The Company had accrued as a current liability $11,000 for the future payment of interest and penalties as of both December 31, 2019 and 2018.