9. Income Taxes

The items comprising the income tax provision are as follows:

	For the Years Ended December 31,
	2015		2014
Current tax provision:
Federal	$	-	$	-
State		800		800
Foreign		-		-
Current tax provision		800		800
Deferred tax provision/(benefit):
Federal		3,539,900		(5,854,400	)
State		43,000		(98,200	)
Deferred tax provision/(benefit)		3,582,900		(5,952,600	)
Total income tax provision/(benefit)	$	3,583,700	$	(5,951,800	)

Total income tax expense/(benefit) differs from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:

	For the Years Ended December 31,
	2015		2014

Income tax provision/(benefit) at statutory federal income tax rate	$	3,407,200	$	(5,863,600	)
State tax provision/(benefit), net of federal benefit		44,300		(97,500	)
Prior year withholding tax adjustment		132,200		-
Other		-		9,300
Total income tax provision/(benefit)	$	3,583,700	$	(5,951,800	)

Temporary differences and carry-forwards that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows:

	December 31,
	2015			2014
Deferred tax assets:
Maintenance reserves	$	1,121,600		$	2,138,900
Current year tax losses		313,200			-
Alternative minimum tax credit		45,500			10,800
Bad debt allowance and other		34,700			961,100
Deferred tax assets		1,515,000			3,110,800
Deferred tax liabilities:
Accumulated depreciation on aircraft and aircraft engines		(12,965,900	)		(10,450,000	)
Deferred income		(753,300	)		(1,282,100	)
Net deferred tax liabilities	$	(12,204,200	)	$	(8,621,300	)

The current year federal operating loss carryovers of approximately $922,000 will be available to offset taxable income in the two preceding years and in future years through 2035. The current year state operating loss carryovers of approximately $24,000 will be available to offset taxable income in the two preceding years and in future years through 2035. The Company expects to utilize the net operating loss carryovers remaining at December 31, 2015 in future years.

At December 31, 2015 and December 31, 2014, the Company had no material uncertain tax positions.

The Company accounts for interest related to uncertain tax positions as interest expense, and for income tax penalties as tax expense.

All of the Company's tax years remain open to examination other than as barred in the various jurisdictions by statutes of limitation.