Entity information:
NOTE
7.
INCOME TAXES

     Income tax provisions for fiscal
2015
through
2017
consisted of the following:
 
 
 
Year Ended March 31
 
 
 
2017
 
 
2016
 
 
2015
 
Current taxes                        
Federal
   $
6,034,924
     $
5,754,428
     $
6,608,923
  
State
    
138,689
      
186,822
      
330,971
  
Deferred taxes                        
Federal
    
(25,196
)
    
(55,254
)
    
125,070
  
State
    
(1,275
)
    
(1,214
)
    
6,356
  
Income tax provision
   $
6,147,142
     $
5,884,782
     $
7,071,320
  
 
 
    A reconciliation of income tax provisions at the U.S. statutory rate for fiscal
2015
through
2017
is as follows:
 
 
 
Year Ended March 31
 
 
 
2017
 
 
2016
 
 
2015
 
Tax expense at U.S. statutory rate
   $
6,645,733
     $
6,272,341
     $
7,503,886
  
State income taxes, net of Federal benefit
    
83,116
      
118,057
      
216,518
  
Domestic manufacturing deduction
    
(536,063
)
    
(476,932
)
    
(600,207
)
Municipal interest
    
(4,207
)
    
(4,171
)
    
(11,489
)
Other
    
(41,437
)
    
(24,513
)
    
(37,388
)
Income tax provision
   $
6,147,142
     $
5,884,782
     $
7,071,320
  

     Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of
March
 
31,
2017
and
2016
were as follows:
 
 
 
March 31
 
 
 
2017
 
 
2016
 
Vacation accrual
   $
109,298
     $
118,611
  
Inventory reserve
    
81,743
      
90,825
  
Depreciation and amortization
    
52,378
      
(30,174
)
Stock-based compensation deductions
    
86,335
      
115,257
  
Unrealized loss (gain) on marketable securities
    
21,852
      
(257,545
)
Other
    
5,449
      
14,214
  
Long-term deferred tax assets
   $
357,055
     $
51,188
  
 

     Realizations of stock-based compensation deductions are credited to “Additional paid-in capital” and included in “Tax benefit of stock-based compensation” on our statements of shareholders’ equity. Credits of
$32,616
in fiscal
2017
and
$352,294
in fiscal
2016
were attributed to stock-based compensation deductions. The “Additional paid-in capital” credits also included the tax benefit of stock-based compensation deductions in those years.

     The amounts credited to “Additional paid-in capital” were the tax benefits of the deductions to the extent they exceeded the corresponding compensation expense recognized for financial reporting purposes. “Tax benefit of stock-based compensation” represented the tax benefits of deductions for stock-based compensation to the extent they exceeded the corresponding compensation expense recognized for financial reporting purposes. Cash we received from the exercise of stock options related to excess tax benefits is included in “Proceeds from sale of common stock” in the statement of cash flows for the year in which the option was exercised and cash received.

     We had
no
unrecognized tax benefits as of
March
 
31,
2017,
and we do
not
expect any significant unrecognized tax benefits within
12
 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of
March
 
31,
2017
we had
no
accrued interest related to uncertain tax positions. The tax years
1999
and
2013
through
2016
remain open to examination by the major taxing jurisdictions to which we are subject.