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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The Company accounts for income taxes using ASC 740, “Income Taxes” which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized differently in the financial statements and the tax returns. The provision for income taxes consists of the following at December 31:
($ in thousands)202120202019
Total provision (benefit):$3,821 $829 $3,980 
Federal:
Current1,960 (852)1,798 
Deferred620 1,464 866 
2,580 612 2,664 
State:
Current937 (21)812 
Deferred304 238 504 
1,241 217 1,316 
$3,821 $829 $3,980 

In March 2020, the Coronavirus Aid, Relief, and Economic Security Act was enacted, which includes a five year net operating loss carryback provision which will enable the Company to benefit from certain losses. This provision applies to net operating losses occurring between December 31, 2017 and January 1, 2021 and temporarily nullifies provisions within the Tax Cuts Jobs Act of 2017 that disallows net operating loss carrybacks. Under these guidelines, the Company has carried back 2020 tax losses and expects to receive a Federal tax refund of $954,000.

In 2021, income tax provision expense primarily consisted of permanent differences related to Section 162(m) limitations and discrete tax expense associated with stock compensation. The Section 162(m) compensation deduction limitations occurred as a result of changes in tax law arising from the 2017 Tax Cuts Jobs Act, which first impacted the Company in 2020. The discrete item was triggered when stock grants were issued to participants at a price less than the original grant price, causing a deferred tax shortfall. The shortfall recognized during the quarter represents the reversal of excess deferred tax assets recognized in prior periods. The recognition of the shortfall is not anticipated to have an impact on the Company's current income tax payable. Lastly, the Company recorded a one time deferred tax liability true-up associated with stock compensation. A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate of 21% in 2021, 2020 and 2019 is as follows for the years ended December 31: 
($ in thousands)202120202019
Income tax at statutory rate$1,924 $17 $3,058 
State income taxes, net of Federal benefit802 217 948 
Excess stock compensation expense34 365 (57)
Non-deductible compensation539 357 — 
Oil and mineral depletion(108)(101)(131)
Refunds— (78)— 
Permanent differences26 16 26 
Stock compensation true-up641 — — 
Other(37)36 136 
Provision (benefit) for income taxes$3,821 $829 $3,980 
Effective tax rate41.7 %1,011.0 %27.3 %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31:
($ in thousands)20212020
Deferred income tax assets:
Accrued expenses$429 $322 
Deferred revenues544 557 
Capitalization of costs1,390 1,661 
Pension adjustment2,342 2,921 
Stock grant expense2,046 2,211 
State deferred taxes194 — 
Book deferred gains2,297 1,034 
Joint venture allocations593 587 
Provision for additional capitalized costs699 699 
Interest rate swap921 1,769 
Other77 209 
Total deferred income tax assets$11,532 $11,970 
Deferred income tax liabilities:
Deferred gains$1,321 $490 
Depreciation3,722 3,533 
Cost of sales allocations872 872 
Joint venture allocations6,367 6,592 
Capitalized stock compensation958 — 
Straight line rent412 548 
Prepaid expenses399 340 
State deferred taxes190 383 
Other189 137 
Total deferred income tax liabilities$14,430 $12,895 
Net deferred income tax (liability)$(2,898)$(925)
Allowance for deferred tax assets— — 
Net deferred taxes$(2,898)$(925)
Due to the nature of the Company's deferred tax assets, the Company believes they will be used through operations in future years and a valuation allowance is not necessary.
The Company made $730,000 in estimated tax payments in 2021 and none in 2020. The Company received tax refunds of $483,000 and $1,314,000 in 2021 and 2020, respectively.
The Company evaluates its tax positions for all income tax items based on their technical merits to determine whether each position satisfies the “more likely than not to be sustained upon examination” test. The tax benefits are then measured as the largest amount of benefit, determined on a cumulative basis, that is “more likely than not” to be realized upon ultimate settlement. As a result of this evaluation, the Company determined there were no uncertain tax positions that required recognition and measurement for the years ended December 31, 2021 and 2020 within the scope of ASC 740, "Income Taxes." Tax years from 2018 to 2020 and 2017 to 2020 remain available for examination by the Federal and California State taxing authorities, respectively.