The following note related to income taxes includes both continuing and discontinued operations. The components of income (loss) before provision for income taxes are as follows (in thousands):

	Years Ended September 30,
	2019			2018			2017
Domestic	$	916		$	7,845		$	1,900
Foreign		(4,648	)		(2,320	)		7,930
	$	(3,732	)	$	5,525		$	9,830

The components of the provision for income taxes are as follows (in thousands):

	Years Ended September 30,
	2019		2018			2017
Current:
Domestic federal	$	—	$	1,167		$	54
Foreign		1,278		(1,404	)		1,330
Foreign withholding taxes		94		356			240
Domestic state		58		101			120
Total current		1,430		220			1,744
Deferred:
Domestic federal		—		—			—
Total deferred		—		—			—
Total provision	$	1,430	$	220		$	1,744

On June 7, 2019, we completed the sale of SoLayTec to a third party located in the Netherlands. Due to the tax treatment relating to the sale, we realized an income tax benefit of $1.3 million in our discontinued operations for the year ended September 30, 2019.

The TCJA was enacted on December 22, 2017, and permanently reduces the U.S. federal corporate tax rate from 35% to 21%, eliminated corporate Alternative Minimum Tax, modified rules for expensing capital investment, and limits the deduction of interest expense for certain companies. The TCJA is a fundamental change to the taxation of multinational companies, including a shift from a system of worldwide taxation with some deferral elements to a territorial system, current taxation of certain foreign income, a minimum tax on low-tax foreign earnings, and new measures to curtail base erosion and promote U.S. production.

As a result of the TCJA, the statutory rate applicable to our fiscal year ended September 30, 2018 was 24.3%, based on a fiscal year blended rate calculation. ASC 740 requires filers to record the effect of tax law changes in the period enacted. In the first quarter of fiscal 2018, we re-measured the applicable deferred tax assets based on the rates at which they are expected to reverse. We adjusted our gross deferred tax assets and liabilities and recorded a corresponding offset to our full valuation allowance against our net deferred tax assets, which resulted in minimal net effect to our provision for income taxes and effective tax rate.

The TCJA includes a one-time mandatory repatriation transition tax on certain net accumulated earnings and profits of our foreign subsidiaries. We have analyzed the earnings and profits of our foreign subsidiaries and determined that no transition taxes are due or expected. The other provisions of TCJA are either immaterial or not applicable for the year ended September 30, 2018.

A reconciliation of actual income taxes to income taxes at the expected United States federal corporate income tax rate is as follows (in thousands, except percentages):

	Years Ended September 30,
	2019			2018			2017
Federal statutory rate		21.0	%		24.3	%		34.0	%
Tax (benefit) expense at the federal statutory rate	$	(784	)	$	1,342		$	3,340
Effect of permanent book-tax differences		272			75			340
State tax provision		31			76			100
Valuation allowance for net deferred tax assets		1,682			617			(1,610	)
Uncertain tax items		74			(3,013	)		350
Tax rate differential		150			1,107			(776	)
Other items		5			16			—
	$	1,430		$	220		$	1,744

Deferred income taxes reflect the tax effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred tax assets and deferred tax liabilities are as follows (in thousands):

	September 30, 2019			September 30, 2018
Deferred tax assets (liabilities):
Capitalized inventory costs	$	168		$	193
Inventory write-downs		2,856			1,333
Accrued warranty		161			204
Deferred profits		346			1,006
Accruals and reserves not currently deductible		3,531			5,017
Stock option expense		849			738
Federal net operating loss carryforwards		6,979			2,922
Foreign and state net operating losses		10,481			13,860
Book vs. tax depreciation and amortization		(1,546	)		(1,667	)
Other deferred tax assets		75			163
Total deferred tax assets		23,900			23,769
Valuation allowance		(23,900	)		(23,769	)
Deferred tax assets, net of valuation allowance	$	—		$	—

The deferred tax valuation allowance increased by $0.1 million and $0.8 million for the years ended September 30, 2019 and 2018, respectively. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future income and tax planning strategies in making this assessment. We have established valuation allowances on substantially all net deferred tax assets, after considering all of the available objective evidence, both positive and negative, historical and prospective, with greater weight given to historical evidence, and determined it is not more likely than not that these assets will be realized. In 2017, 2018 and 2019, we reversed a portion of the valuation allowance related to net operating loss carryforwards which we have determined will be utilized against net operating income in the current year. Additionally, as of September 30, 2017, the deferred tax assets related to acquired foreign tax credits and the related valuation allowance were reduced due to our inability to use them prior to expiration. We will continue to monitor our cumulative income and loss positions in the U.S. and foreign jurisdictions to determine whether full valuation allowances on net deferred tax assets are appropriate.

As of September 30, 2019, we have federal net operating loss carryforwards of approximately $13.8 million that expire at various times between 2028 and 2035. The utilization of those federal net operating losses are limited to approximately $0.8 million per year. Additionally, we have federal net operating loss carryforwards of approximately $19.5 million that have an indefinite carryforward period. The utilization of those federal net operating losses are limited to 80% of taxable income. We have foreign net operating loss carryforwards of approximately $38.4 million which expire at various times through 2025. We have approximately $12.6 million of state net operating loss carryforwards.

We apply the accounting guidance for uncertainty in income taxes using the provisions of ASC 740. In this regard, an uncertain tax position represents our expected treatment of a tax position taken in a filed tax return or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. Approximately $0.6 million of this total represents the amount that, if recognized, would favorably affect our effective income tax rate in future periods.

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows (in thousands):

	Years Ended September 30,
	2019		2018			2017
Balance at beginning of the year	$	1,198	$	4,210		$	3,860
Additions related to tax positions taken in prior years		74		155			350
Reductions due to resolution of uncertain tax position		—		(3,167	)		—
Balance at the end of the year	$	1,272	$	1,198		$	4,210

We have classified all of our liabilities for uncertain tax positions as income taxes payable long-term. Income taxes long-term also includes other items, primarily withholding taxes that are not due until the related intercompany service fees are paid.

We report accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized a net expense (benefit) for interest and penalties of $0.1 million, $(2.0) million and $0.4 million for 2019, 2018 and 2017, respectively. Income taxes payable long-term on the Consolidated Balance Sheets includes a cumulative accrual for potential interest and penalties of $0.8 million and $0.7 million as of September 30, 2019 and 2018, respectively.

We do not expect that the amount of our tax reserves for uncertain tax positions will materially change in the next 12 months other than the continued accrual of interest and penalties.

Amtech and one or more of our subsidiaries file income tax returns in the Netherlands, Germany, France, China and other foreign jurisdictions, as well as the U.S. and various states in the U.S. We have not signed any agreements with the Internal Revenue Service, any state or foreign jurisdiction to extend the statute of limitations for any fiscal year. As such, the number of open years is the number of years dictated by statute in each of the respective taxing jurisdictions, but generally is from 3 to 5 years.

These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenues and expenses, or the sustainability of income tax positions of Amtech and our subsidiaries.