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INCOME TAXES (Notes)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table sets forth our provision for income taxes for the periods indicated:
 Years Ended December 31,
 202120202019
 
(Thousands of dollars)
Current tax expense (benefit)
Federal$2,897 $980 $(1,278)
State9,544 1,797 963 
Total current tax expense (benefit)12,441 2,777 (315)
Deferred tax expense
Federal433,469 154,068 327,806 
State38,588 32,662 44,923 
Total deferred tax expense472,057 186,730 372,729 
Total provision for income taxes$484,498 $189,507 $372,414 

The following table is a reconciliation of our income tax provision for the periods indicated:
Years Ended December 31,
 202120202019
 
(Thousands of dollars)
Income before income taxes$1,984,204 $802,316 $1,650,991 
Federal statutory income tax rate21.0 %21.0 %21.0 %
Provision for federal income taxes416,683 168,486 346,708 
State income taxes, net of federal benefit40,092 13,580 34,545 
Deferred tax rate change, inclusive of valuation allowance6,350 20,879 11,340 
Excess tax benefits from share-based compensation(1,968)(7,380)(20,983)
Other, net (a)23,341 (6,058)804 
Income tax provision$484,498 $189,507 $372,414 
(a) The year ended December 31, 2021, includes $19.4 million impact from previously recognized gains on certain benefit plan investments.
The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated:
December 31,
2021
December 31,
2020
Deferred tax assets
(Thousands of dollars)
Employee benefits and other accrued liabilities$95,952 $96,741 
Federal net operating loss1,337,050 1,473,093 
State net operating loss and benefits216,181 258,929 
Derivative instruments118,063 134,499 
Other4,863 12,894 
Total deferred tax assets1,772,109 1,976,156 
Valuation allowance for state net operating loss and tax credits
Carryforward expected to expire prior to utilization(84,755)(121,212)
Net deferred tax assets1,687,354 1,854,944 
Deferred tax liabilities
Excess of tax over book depreciation84,692 87,021 
Investment in partnerships (a)2,769,352 2,437,620 
Total deferred tax liabilities2,854,044 2,524,641 
Net deferred tax assets (liabilities)$(1,166,690)$(669,697)
(a) Due primarily to excess of tax over book depreciation.
As of December 31, 2021, we have federal net operating loss carryforwards of $6.4 billion, the majority of which have an indefinite carry forward period. We expect to generate taxable income and utilize these net operating loss carryforwards in future periods. We also have loss and credit carryovers in multiple states, $2.8 billion of which have an indefinite carry forward period and $1.9 billion of which will expire between 2022 and 2038. We have deferred tax assets related to federal and state net operating loss and credit carryforwards of $1.6 billion and $1.7 billion in 2021 and 2020, respectively. We believe that it is more likely than not that the tax benefits of certain state carryforwards will not be utilized; therefore, we recorded a valuation allowance of $6.4 million, $20.9 million and $11.3 million through net income related to these tax benefits in 2021, 2020 and 2019, respectively.