14. Income taxes

The components of income before income taxes for the years ended December 31, 2019 and 2018 are as follows:


	Year Ended December 31,
	2019		2018
Foreign (not subject to income taxes)	$	13,593,497	$	15,100,642
Mexico		(2,458,210)		(3,115,656)
United States		2,657,405		(153,003)
		13,792,692		11,831,983
Less gain on sale of discontinued operations		(3,621,170)		—
Less discontinued operations		—		(1,115,825)
	$	10,171,522	$	10,716,158

The Company’s provision for (benefit from) income taxes for the years ended December 31, 2019 and 2018, which related to U.S. operations, consisted of the following:


	Year Ended December 31,
	2019		2018
Current:
Federal	$	143,567	$	100,806
State		171,093		106,922
Foreign		—		—
Total		314,660		207,728
Deferred:
Federal		(203,031)		(302,440)
State		(45,008)		(62,579)
Foreign		—		—
Total		(248,039)		(365,019)
Total provision	$	66,621	$	(157,291)

A reconciliation of the U.S. statutory federal tax rate to the effective benefit rate for the U.S. loss before income taxes for the years ended December 31, 2019 and 2018 is as follows:


	Year Ended December 31,
	2019		2018
U.S. statutory federal rate	21.00	%	21.00	%
State taxes, net of federal effect	4.38	%	4.22	%
Nontaxable foreign income	(30.09)	%	(38.26)	%
Research & development tax credit	(3.46)	%	(2.27)	%
Permanent items	(0.79)	%	1.26	%
Valuation allowance for deferred tax assets	9.45	%	12.72	%
	0.49	%	(1.33)	%

The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2019 and 2018 were as follows:


	December 31,
	2019		2018
Deferred tax assets:
Operating loss carryforwards - Mexico	$	3,427,295	$	3,020,049
Land basis difference - Mexico		1,164,365		999,719
Start-up costs - Mexico		4,608,990		3,856,942
Research & development tax credits - U.S.		166,653		—
Valuation allowances		(9,244,550)		(7,876,710)
		122,753		—
Deferred tax liabilities:
Property and equipment - U.S.		148,707		180,431
Intangible assets - U.S.		1,380,328		479,443
		1,529,035		659,874

Net deferred tax liability	$	1,406,282	$	659,874

As of December 31, 2019, the Company had a net loss carryforward related to its Mexico operations of approximately $11.4 million that will begin to expire in 2020 if unused. The deferred tax asset is included in the consolidated balance sheet as prepaid expenses and other current assets as of December 31, 2019.