6.	*Income Taxes*

The components of income tax expense (benefit) are as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Current Federal alternative minimum tax (“AMT”) expense	$	79,000	$	81,000	$	141,000	$	119,000
Current state and local tax expense		99,000		96,000		160,000		96,000
Deferred Federal tax expense (A)		434,000		1,738,000		1,245,000		2,360,000
Deferred state and local tax expense (benefit)		(32,000)		(559,000)		21,000		(472,000)

Consolidated income tax expense, including taxes attributable to discontinued operations (B)		580,000		1,356,000		1,567,000		2,103,000
Less income tax expense attributable to discontinued operations		—		755,000		—		708,000

Income tax expense (C)	$	580,000	$	601,000	$	1,567,000	$	1,395,000


(A)		Includes an AMT (benefit) of $(79,000) and $(81,000) in the three months ended June 30, 2016 and 2015, respectively, and $(141,000) and $(119,000) in the six months ended June 30, 2016 and 2015, respectively.
(B)		Includes income tax expense attributable to income from discontinued operations.
(C)		Reflects the tax expense from continuing operations as reported on the consolidated statements of operations for the periods presented.

During March 2014, New York State enacted a law to (1) reduce corporate tax rates, effective in future years and (2) change the method of determining the availability and use of NOLs existing at December 31, 2014. In April 2015, New York City enacted a law which substantially conforms with the New York State changes. As a consequence, the Company evaluated all elements affecting the balance of its net deferred tax assets in the respective periods, including the availability of New York State and New York City NOL carryforwards.

Due to the amount of its NOL and credit carryforwards, the Company does not anticipate paying Federal income taxes for a number of years. The Company expects, in the future, that it will be subject to cash payments for Federal AMT and for a portion of its state and local income taxes as the changed New York State and New York City laws limit the amount of existing NOLs which could be used each year.

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. The net deferred tax asset was approximately $17,340,000 and $18,430,000 at June 30, 2016 and December 31, 2015, respectively, all of which was classified as non-current in accordance with ASU 2015-17. The significant portion of the deferred tax items relates to deferred tax assets including NOL carryforwards, Federal AMT credit carryforwards and stock based compensation, with the remainder of the deferred tax items relating to liabilities resulting from the intangible assets recorded at the time of the Merger.

The Company had Federal NOL carryforwards aggregating approximately $46,018,000 at December 31, 2015, as well as significant state and local NOL carryforwards. These NOLs included amounts generated subsequent to the Merger (including a substantial NOL realized during the year ended December 31, 2012 as a result of the Gold Peak litigation settlement, discussed in Note 3), losses from the Reis Services business prior to the Merger and the Company’s operating losses prior to the Merger. Approximately $13,300,000 of these Federal NOLs are subject to an annual Internal Revenue Code Section 382 limitation of $2,779,000, whereas the remaining balance of approximately $32,718,000 is not subject to the limitation. The enactment of the 2014 New York State law and the 2015 New York City law discussed above limit the amount of existing NOLs which could be used each year in those jurisdictions; however, all such NOLs are expected to be fully utilized in the future.