Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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	)

Income tax reconciliation

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	)

Deferred tax assets and liabilities

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	)