The provision for income taxes, relating to continuing operations, is composed of the following as of December 31, 2019, 2018 and 2017 (in millions):

	2019			2018			2017
Current:
U.S. Federal expense (benefit)	$	(0.1	)	$	(0.3	)	$	(0.1	)
State and local tax		0.1			0.1			0.4
Total current		—			(0.2	)		0.3
Deferred:
U.S. Federal tax		9.7			(1.6	)		3.7
State and local tax		1.4			0.4			(0.8	)
Total deferred		11.1			(1.2	)		2.9

Total income tax expense (benefit)	$	11.1		$	(1.4	)	$	3.2

A reconciliation of income taxes based on the application of the statutory federal income tax rate to income taxes as set forth in the consolidated statements of operations is as follows for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
Federal statutory rate		21.0	%		21.0	%		35.0	%
Increase (decrease) in taxes resulting from:
State and local taxes		(13.8	)		(7.8	)		17.3
Nondeductible items		(1.8	)		(2.9	)		(17.6	)
Tax Cuts and Jobs Act of 2017		—			—			(147.7	)
Prior year true-up items		(4.5	)		6.9			6.8
Refundable tax credits		0.8			1.5			3.6
Other, net		(0.8	)		(0.1	)		0.1
Change in valuation allowance		(111.5	)		—			(0.1	)
Effective income tax rate		(110.6	)%		18.6	%		(102.6	)%

At December 31, 2019, our valuation allowance on deferred tax assets (“DTAs”) was approximately $20.0 million compared to $7.3 million at December 31, 2018. In each reporting period, we examine the available positive and negative evidence in assessing whether it is more likely than not that our deferred tax assets are recoverable, including consideration as to whether sufficient future taxable income would be generated to utilize the existing deferred tax assets. Starting in the second quarter of 2019, our operations were in a position of cumulative losses for the most recent three-year period. The cumulative loss incurred by the Company over the three-year period ended December 31, 2019 constitutes a significant piece of objective negative evidence in assessing whether it is more likely than not that our deferred tax assets are recoverable. Such objective negative evidence limits the ability to consider other subjective evidence, such as our projections for future profitability and growth. Based on this evaluation, the company concluded it is more likely than not that a significant portion of our deferred tax assets will not be realized. Accordingly, the Company has recorded a full valuation allowance on its net deferred tax asset position, resulting in a $12.7 million income tax expense in our provision for income taxes for the year ended December 31, 2019.

The income tax expense from continuing operations for 2019 was $11.1 million on a loss before taxes of $10.2 million. For 2018, an income tax benefit of $1.4 million was recorded on a pretax loss of $7.4 million. The income tax benefit from discontinued operations for 2018 was $0.1 million on a net loss before taxes of $0.5 million.

At December 31, 2019, the Company had gross deferred tax assets of $35.4 million and a valuation allowance of $20.0 million, netting to deferred tax assets of $15.4 million. The Company had deferred tax liabilities of $15.4 million at December 31, 2019. The Company had $0.0 million and $11.1 million net deferred tax assets at December 31, 2019 and 2018, respectively.

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation. This legislation made significant changes in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from 35% to 21%. As a result, the Company was required to revalue deferred tax assets and liability at the enacted rate. This revaluation resulted in $4.5 million of income tax expense in continuing operations and a corresponding reduction in the deferred tax asset. The other provisions of the Tax Cuts and Jobs Act did not have a material impact on the 2017 consolidated financial statements.

Deferred income taxes at December 31, 2019 and 2018 are comprised of the following (in millions):

	2019					2018
	Assets			Liabilities		Assets			Liabilities
Income tax loss carryforwards	$	17.8		$	—	$	17.8		$	—
Other accrued liabilities		1.0			—		1.2			—
Employee benefits related		0.8			—		1.2			—
Property, plant and equipment		—			0.2		—			0.1
Insurance related		0.7			—		0.8			—
Goodwill		0.4			—		0.2			—
Inventories		1.8			—		1.5			—
Accounts receivables		0.8			—		0.5			—
LIFO		—			5.2		—			6.0
Leases		9.7			9.6		—			—
Other		2.4			0.4		1.6			0.3
Gross deferred tax assets and liabilities		35.4			15.4		24.8			6.4
Valuation allowance		(20.0	)		—		(7.3	)		—
Total	$	15.4		$	15.4	$	17.5		$	6.4

The Company has both federal and state tax loss carryforwards reflected above. The Company’s federal tax loss carryforwards of approximately $44 million will begin to expire in 2030. As a result of the Tax Act, any federal tax losses incurred by the Company starting in 2018 will have an indefinite carryforward. The Company also has an interest limitation carryforward under IRC Section 163(j) of approximately $9.0 million as of December 31, 2019. This limitation also has an indefinite carryforward period. The Company’s remaining carryforwards have expiration dates from 2018 to 2036. The Company has no material uncertain tax positions at December 31, 2019.

We file U.S. and state tax returns in jurisdictions with varying statutes of limitations. The 2016 through 2019 tax years generally remain subject to examination by federal and state tax authorities.