The following summarizes the (benefit) / provision for income taxes:

 

Years Ended December 31,		2017			2016			2015
(in thousands)
Current:
Federal		$	(3,690)		$	4,981		$	174
State and local			532			567			2
			(3,158)			5,548			176
Deferred:
Federal			4,293			949			2,460
State and local			(288)			131			308
			4,005			1,080			2,768
Expense for income taxes		$	847		$	6,628		$	2,944

  

Reconciliation of the Company's actual tax rate to the U.S. Federal statutory rate is as follows:

 

Years ended December 31,		2017			2016			2015
Income tax rates
- Statutory U.S. federal rate			35	%		35	%		34	%
- State income taxes, net of federal benefit			4	%		3	%		4	%
- Excess tax benefits related to stock compensation			(20)	%		—			—
- Effect of 2017 Tax Act			(12)	%		—			—
Total			7	%		38	%		38	%

  

 

Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. The net deferred income tax assets (liabilities) consisted of the following at:

 

December 31,		2017			2016
(in thousands)
- Depreciation &; amortization		$	(3,665)		$	(236)
- Reserves for doubtful accounts			115			139
- Inventory reserve			218			304
- Non qualified stock options			409			247
- Net operating losses			1,450			2,078
Total		$	(1,473)		$	2,532

 

The Company considered its projected future taxable income, and associated annual limitations, in determining the amount of deferred tax assets to recognize. The Company believes that given the extended time period that it may recognize its deferred tax assets, it is more likely than not it will realize the benefit of these assets prior to their expiration.

 

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“2017 Tax Act”), which lowered the federal statutory income tax rate from, generally, 35% to 21% for tax years beginning after December 31, 2017. As a result of the enactment of the 2017 Tax Act, the Company recorded a benefit of approximately $1.4 million during the fourth quarter of 2017 to reflect the net impact of lower future federal income tax rates on the NOLs and the other cumulative differences in financial reporting and tax bases assets and liabilities, which were, primarily, fixed assets and accumulated depreciation.

 

 

The Company evaluates uncertain tax positions, if any, by determining if it is more likely than not to be sustained upon examination by the taxing authorities. As of December 31, 2017 and 2016, the Company had no uncertain tax positions.