10. INCOME TAXES

In 2017, the Company recognized the impact of its investments in partnerships that incurred expenses related to the rehabilitation of certified historic structures located in New York State after the historic structures were placed in service. At the time a historic structure is placed in service, the Bank is eligible for a federal and New York State tax credit. The Company’s accounting policies related to these investments and the resulting tax credits is detailed in Note 1 to the audited Consolidated Financial Statements on Form 10-K for the year ended December 31, 2016.

The following table presents the impact to the results of operations for the three and nine month periods ended September 30, 2017 and 2016:



		Three months ended September 30,			Nine months ended September 30,
		(in thousands)				(in thousands)


	2017		2016		2017		2016

Loss on tax credit investment	$	(1,338)	$	-	$	(2,257)	$	(2,139)
Refundable state historic tax credit		972		-		1,619		1,508
Income tax benefit		660		380		896		757
Total HTC income	$	294	$	380	$	258	$	126