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INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES
12. INCOME TAXES:
 
The (benefit) provision for income taxes consisted of the following for the years ended December 31, 2021, 2020, and 2019 (in millions):
 
 202120202019
Current (benefit) provision for income taxes:   
Federal$(78)$(126)$(89)
State2 9 (2)
 (76)(117)(91)
Deferred benefit for income taxes:   
Federal(93)(584)(4)
State(4)(19)(1)
 (97)(603)(5)
Benefit for income taxes$(173)$(720)$(96)
The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:
 202120202019
Federal statutory rate21.0 %21.0 %21.0 %
Adjustments:   
Federal tax credits (a)10.6 %1.7 %(684.6)%
Net Operating Loss Carryback (b)7.5 %1.9 %— %
State income taxes, net of federal tax benefit (c)(4.2)%4.0 %56.6 %
Noncontrolling interest (d)2.6 %0.7 %(138.9)%
Valuation allowance (e)(1.5)%(6.1)%(237.1)%
Change in unrecognized tax benefits (f)(1.0)%(0.2)%72.2 %
Stock-based compensation(0.2)%(0.1)%(15.9)%
Non-deductible items (g)(0.1)%— %192.7 %
Effect of consolidated VIEs (h)0.1 %(0.1)%46.3 %
Spectrum sales (i)— %— %(386.7)%
Capital loss carryback (j)— %— %(26.0)%
Other(0.1)%0.1 %(3.0)%
Effective income tax rate34.7 %22.9 %(1,103.4)%

(a)Our 2021, 2020, and 2019 income tax provisions include a benefit of $40 million, $42 million, and $57 million, respectively, related to investments in sustainability initiatives whose activities qualify for federal income tax credits through 2021.
(b)Our 2021 and 2020 income tax provisions include a benefit of $38 million and $61 million, respectively, as result of the CARES Act allowing for the 2020 federal net operating loss to be carried back to the pre-2018 years when the federal tax rate was 35%.
(c)Included in state income taxes are deferred income tax effects related to certain acquisitions, intercompany mergers, law changes, and/or impact of changes in apportionment.
(d)Our 2021, 2020, and 2019 income tax provisions include a $13 million, $23 million, and $12 million benefit, respectively, related to noncontrolling interest of various partnerships.
(e)Our 2021 income tax provision includes a net $8 million addition related to an increase in valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j) and primarily offset by a decrease in valuation allowance on certain state deferred tax assets as a result of the changes in estimate of the state apportionment. Our 2020 income tax provision includes a $192 million addition related to an increase in valuation allowance primarily due to the change in judgement in the realizability of certain deferred tax assets resulting from the reduction in forecast of future operating income and the RSN impairment. Our 2019 income tax provision includes a $16 million benefit related to a release of valuation allowance on certain state net operating losses where utilization was expected as a result of a business combination.
(f)Our 2021, 2020, and 2019 income tax provisions include $1 million, $5 million, and $4 million additions, respectively, related to tax positions of prior tax years.
(g)Our 2019 income tax provision includes a $17 million addition primarily related to regulatory costs, executive compensation and other not tax-deductible expenses.
(h)Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs. These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized.
(i)Our 2019 income tax provision includes a benefit of $34 million related to the treatment of the gain from the sale of certain broadcast spectrum in connection with the Broadcast Incentive Auction.
(j)Our 2019 income tax provision includes a $2 million benefit related to capital losses that will be carried back to the pre-2018 tax years when the federal tax rate was 35%.
Temporary differences between the financial reporting carrying amounts and the tax bases of assets and liabilities give rise to deferred taxes. Total deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 were as follows (in millions):
 20212020
Deferred Tax Assets:  
Net operating losses:  
Federal$16 $22 
State120 130 
Goodwill and intangible assets6 9 
Basis in DSH814 834 
Tax Credits87 67 
Other108 53 
 1,151 1,115 
Valuation allowance for deferred tax assets(256)(252)
Total deferred tax assets$895 $863 
Deferred Tax Liabilities:  
Goodwill and intangible assets$(397)$(402)
Property & equipment, net(165)(221)
Other(40)(43)
Total deferred tax liabilities(602)(666)
Net deferred tax assets$293 $197 

At December 31, 2021, the Company had approximately $76 million and $2.6 billion of gross federal and state net operating losses, respectively. Except for those without an expiration date, these losses will expire during various years from 2022 to 2041, and some of them are subject to annual limitations under the IRC Section 382 and similar state provisions. As discussed in Income Taxes under Note 1. Nature of Operations and Summary of Significant Accounting Policies, we establish valuation allowances in accordance with the guidance related to accounting for income taxes. As of December 31, 2021, a valuation allowance has been provided for deferred tax assets related to certain temporary basis differences, interest expense carryforwards under the IRC Section 163(j) and a substantial portion of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies, current and cumulative losses, and projected future taxable income. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that they will be realized in the future. During the year ended December 31, 2021, we increased our valuation allowance by $4 million to $256 million. The increase in valuation allowance was primarily due to uncertainty in the realizability of deferred tax assets related to interest expense carryforwards under the IRC Section 163(j), offset by a change in judgement in the realizability of certain state deferred tax assets. During the year ended December 31, 2020, we increased our valuation allowance by $187 million to $252 million. The increase in valuation allowance was primarily due to the change in judgement in the realizability of certain deferred tax assets resulting from the reduction in forecast of future operating income and the RSN impairment.
 
The following table summarizes the activity related to our accrued unrecognized tax benefits (in millions):
 202120202019
Balance at January 1,$11 $11 $7 
Additions related to prior year tax positions1 5 4 
Additions related to current year tax positions3 3 — 
Reductions related to prior year tax positions— (1)— 
Reductions related to settlements with taxing authorities— (4)— 
Reductions related to expiration of the applicable statute of limitations— (3)— 
Balance at December 31,$15 $11 $11 

We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. Our 2016 through 2019 federal tax returns are currently under audit, and several of our subsidiaries are currently under state examinations for various years. Certain of our 2017 and subsequent federal and/or state tax returns remain subject to examination by various tax authorities. We do not anticipate the resolution of these matters will result in a material change to our consolidated financial statements. In addition, we do not believe that our liability for unrecognized tax benefits would be materially impacted, in the next twelve months, as a result of expected statute of limitations expirations, the application of limits under available state administrative practice exceptions, and the resolution of examination issues and settlements with federal and certain state tax authorities.