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INCOME TAXES
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense for the years ended December 31, 2022, 2021 and 2020 consisted of the following (in thousands):
202220212020
Current
Federal$35,857 $49,433 $28,520 
State5,558 6,380 2,285 
Total current41,415 55,813 30,805 
Deferred
Federal(738)(3,424)477 
State(186)(291)(77)
Foreign— — 201 
Total deferred(924)(3,715)601 
Provision for income taxes$40,491 $52,098 $31,406 
The total provision for income taxes for the years ended December 31, 2022, 2021 and 2020 was $40.5 million, $52.2 million and $31.4 million, respectively. Those amounts have been allocated to the following financial statement items:
202220212020
Income before provision for income taxes$40,491 $52,098 $31,406 
Stockholders' equity, unrealized (losses) gains on investment securities & foreign currency(27)66 14 
Total provision for income taxes$40,464 $52,164 $31,420 
The reconciliation of the United States federal statutory tax provision to the Company’s provision for income taxes for the years ended December 31, 2022, 2021 and 2020 (in thousands, except percentages):
202220212020
Statutory federal tax$38,621 21.0 %$45,405 21.0 %$28,196 21.0 %
State income taxes, net of federal benefit4,635 2.5 %4,980 2.3 %1,470 1.1 %
Foreign taxes
Hong Kong75 0.0 %91 0.0 %94 0.1 %
Singapore28 0.0 %32 0.0 %107 0.1 %
Share-based compensation - windfall(26)0.0 %(1,835)(0.8)%(415)(0.3)%
Research and development and jobs credits(819)(0.4)%(503)(0.2)%(370)(0.3)%
Executive compensation1,470 0.8 %2,652 1.2 %966 0.7 %
Charitable donations(4,316)(2.3)%— 0.0 %— 0.0 %
Valuation allowance396 0.2 %468 0.2 %1,342 1.0 %
Other permanent differences427 0.2 %808 0.4 %16 0.0 %
Provision for income taxes$40,491 22.0 %$52,098 24.1 %$31,406 23.4 %
Significant components of the Company’s deferred tax assets (liabilities) consisted of the following (in thousands):
December 31, 2022December 31, 2021
Reserves on inventory and sales$1,069 $2,022 
Credit and loss carryforwards3,713 3,052 
Stock compensation2,374 420 
Accrued expenses and deferred costs5,153 4,240 
Inventory capitalization1,781 3,514 
Lease obligations5,773 7,191 
Capitalized research costs2,502 — 
Charitable donations1,862 — 
Other190 — 
Valuation allowance(2,523)(1,904)
Total deferred tax assets21,894 18,535 
Right-of-use assets(4,089)(5,375)
Unrealized loss on investment securities(23)(6)
Prepaid expenses(1,289)(1,175)
Depreciation(11,165)(7,575)
Other— — 
Total deferred tax liabilities(16,566)(14,131)
Net deferred tax assets$5,328 $4,404 

On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). It amends the Internal Revenue Code to provide relief and supportive measures for taxpayers impacted by the outbreak of COVID-19 virus. The key components of the Act are as follows: eliminating taxable income limitation for certain net operating losses (“NOL”) and permitting carry back NOLs arising in 2019 , 2020 and 2021 to five prior tax years; accelerating refunds of previously generated Alternative Minimum Tax credit; increasing business interest limitation from 30 percent to 50 percent of adjusted taxable income; amending depreciation for qualified improvement property (“QIP”) to 15- year property for QIP placed in service after December 31, 2018. The Company's income tax provision provided under the CARES Act did not have a material impact on the year ended December 31, 2022, 2021 and 2020.
On August 12, 2022, the President of the United States signed into law the Inflation Reduction Act. The two primary tax implications for corporations are a 15% alternative minimum tax (“AMT”) that applies to corporations with at least one billion of pretax income and a one percent surtax on share buybacks. The AMT will not apply to the Company since the Company’s pretax income does not exceed the threshold. The one percent surtax on share repurchases will apply to the Company when it comes into force in 2023. The Company's income tax provision provided under the Inflation Reduction Act did not have a material impact on the year ended December 31, 2022.
The Company has separate state and foreign net operating loss carry forwards totaling $31.6 million that start expiring in 2029. The Company has recorded a valuation allowance for the portion of the net operating loss carry forwards which is not expected to be realized. We file income tax returns in the United States and various states and foreign jurisdictions. We are generally no longer subject to United States federal, state and local income tax examinations by tax authorities for the years before 2019.