We account for income taxes under ASC 740, which requires the use of the liability method.  ASC 740 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences.  Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized.  We have a Federal General Business Credit carryover available for 2018 of $63,881.

Our income tax provision is summarized below:

On December 22, 2017, the new Federal tax law was signed, lowering the corporate tax rate to 21%. The resulting change in deferred taxes is noted in the table below. The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consists of the following:

The components of the deferred tax asset are as follows:

Our income tax returns are no longer subject to Federal tax examinations by tax authorities for years before 2014 or state examinations for years before 2013.