9. INCOME TAX

The following table provides a reconciliation between income taxes calculated at the statutory federal tax rate and the provision for income taxes reflected in the consolidated statements of comprehensive income for the three years ended December 31:



Dollars in thousands	2013			2012			2011
Income taxes at federal statutory rate	$	35,785		$	35,764		$	37,056
Increase (decrease):
Current state income tax, net of federal tax benefit	4,674			4,773			4,945
Amortization of investment and energy tax credits	(271		)	(350		)	(442		)
Differences required to be flowed-through by regulatory commissions	2,357			1,718			1,647
Gains on company and trust-owned life insurance	(864		)	(800		)	(786		)
Regulatory asset impairment	—			2,700			—
Other, net	24			(402		)	405
Total provision for income taxes	$	41,705		$	43,403		$	42,825
Effective tax rate	40.8		%	42.5		%	40.5		%

The decrease in the effective income tax rate for 2013 compared to 2012 was primarily due to the one-time, after-tax charge of $2.7 million in 2012 related to the OPUC's rate case order that the Company could not recover deferred tax amounts resulting from the 2009 Oregon income tax rate change.

The provision (benefit) for current and deferred income taxes consists of the following at December 31:



In thousands	2013			2012		2011
Current
Federal	$	(62	)	$	1,693	$	130
State	(11		)	99		(929		)
	(73		)	1,792		(799		)
Deferred
Federal	35,109			31,187		35,021
State	6,669			10,424		8,603
	41,778			41,611		43,624
Total provision for income taxes	$	41,705		$	43,403	$	42,825
Total income taxes paid	$	870		$	2,979	$	1,756

The following table summarizes the total provision (benefit) for income taxes for the utility and non-utility business segments for the three years ended December 31:



In thousands	2013			2012			2011
Utility:
Current	$	(73	)	$	1,909		$	(4,646	)
Deferred	38,073			39,163			49,595
Deferred investment and energy tax credits	(271		)	(350		)	(422		)
	37,729			40,722			44,527
Non-utility business segments:
Current	—			(117		)	3,846
Deferred	3,976			2,798			(5,548		)
	3,976			2,681			(1,702		)
Total provision for income taxes	$	41,705		$	43,403		$	42,825

The following table summarizes the tax effect of significant items comprising our deferred income tax accounts for the two years ended December 31:



In thousands	2013		2012
Deferred tax liabilities:
Plant and property	$	362,160	$	322,527
Regulatory income tax assets	56,183		60,253
Regulatory liabilities	71,971		49,197
Non-regulated deferred tax liabilities	47,516		43,824
Total	$	537,830	$	475,801
Deferred tax assets:
Regulatory assets	$	—	$	(7,724	)
Unfunded pension and postretirement obligations	4,112		6,024
Non-regulated deferred tax assets	—		(1,235		)
Alternative minimum tax credit carryforward	1,939		1,986
Loss and credit carryforwards	45,351		32,997
Total	51,402		32,048
Deferred income tax liabilities, net	486,428		443,753
Deferred investment tax credits	367		624
Deferred income taxes and investment tax credits	$	486,795	$	444,377

We have determined that we are more likely than not to realize all recorded deferred tax assets as of December 31, 2013.

On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which allows 100% bonus depreciation for qualified property placed in service between September 9, 2010 through December 31, 2011. It also extended the 50% bonus depreciation deduction to qualifying property placed in service through 2012. On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012, which extended 50% bonus depreciation under §168(k) through 2013 for modified accelerated cost recovery system (MACRS) property with a recovery period of 20 years or less.

The Company estimates that it has net operating loss (NOL) carryforwards of $113.0 million for federal taxes and $113.7 million for Oregon taxes at December 31, 2013. The NOL carryforwards will be carried forward to reduce our current tax liability in future years. We anticipate that we will be able to utilize the entire NOL carryforwards before they expire in 20 years for federal and 15 years for Oregon.

Uncertain tax positions are accounted for in accordance with accounting standards that require management’s assessment of the 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. Until such positions are sustained by the taxing authorities, we would not recognize the tax benefits resulting from such positions and would report the tax effect as a liability in our consolidated balance sheet. As of December 31, 2013, we had no reserves for uncertain tax positions.

As of December 31, 2013, the Company was under examination by the Internal Revenue Service for tax years 2009 through 2011, with resolution expected in 2014. The Company is also subject to examination for tax year 2012.

In 2012 the Company settled the Oregon Department of Revenue examination of tax years 2006 through 2009. This settlement resulted in an additional $0.2 million state tax expense, including interest, but that amount was offset by a corresponding refund claim with the state of California.

Interest and penalties related to any future income tax deficiencies are recorded within income tax expense in the consolidated statements of comprehensive income.