9.INCOME TAXES

	2015		2014		2013
Federal:
Current	$	5,496,735	$	2,242,641	$	4,102,557
Deferred	99,251		1,100,487		1,253,385

	5,595,986		3,343,128		5,355,942


State:
Current	489,684		227,648		761,633
Deferred	233,705		429,879		(194,216		)

	723,389		657,527		567,417

Total	$	6,319,375	$	4,000,655	$	5,923,359

Deferred tax assets and deferred tax liabilities were as follows:

	2015			2014
Deferred tax assets:
Receivables	$	20,020		$	20,020
Inventories	612,830			550,170
Accrued liabilities	1,028,149			1,295,798
Net operating losses and credit carryforwards	1,121,481			1,336,649
Other	93,600			166,347

Total deferred tax assets	2,876,080			3,368,984


Deferred tax liabilities:
Depreciation	(4,265,972		)	(4,357,310		)
Prepaids and other	(707,149		)	(775,759		)

Total deferred tax liabilities	(4,973,121		)	(5,133,069		)

Net deferred tax liabilities	$	(2,097,041	)	$	(1,764,085	)

At December 26, 2015, the Company had state tax loss carryforwards of approximately $26 million available to offset future taxable income, expiring in various amounts beginning December 31, 2019 through December 31, 2035.

A reconciliation of the tax provision for income taxes from continuing operations at the U.S. Statutory rate (35% in 2015, 35% in 2014 and 34% in 2013) to the effective income tax expense rate as reported is as follows:

	2015					2014					2013
U.S. Federal statutory rate	$	6,718,125		35.0	%	$	4,364,717		35.0	%	$	5,821,356		34.0	%
State income taxes, net of federal benefit	470,203			2.4		617,410			5.0		510,783			3.0
Tax-exempt underwriting income of wholly- owned small captive insurance subsidiary	(388,168		)	(2.0	)	(297,243		)	(2.4	)	(225,480		)	(1.3	)
Domestic production deduction	(553,476		)	(2.9	)	(281,688		)	(2.3	)	(167,800		)	(1.0	)
Research and development tax credits	(75,000		)	(0.4	)	(75,000		)	(0.6	)	(100,000		)	(0.6	)
Alternative fuel tax credit	(26,000		)	(0.1	)	(22,750		)	(0.2	)	(37,370		)	(0.2	)
Stock-based compensation	—			—		(117,395		)	(0.9	)	16,800			0.1
Other, net	173,691			0.9		(187,396		)	(1.5	)	105,070			0.6

Effective tax	$	6,319,375		32.9	%	$	4,000,655		32.1	%	$	5,923,359		34.6	%

Uncertain Tax Positions

The Company recognizes income tax benefits only when it is more likely than not that the tax position will be allowed upon examination by taxing authorities, which is presumed to occur. The amount of such tax benefit recorded is the largest amount that is more likely than not to be allowed. A reconciliation of the change in the unrecognized tax benefits for the three years ended December 26, 2015 is as follows:

Unrecognized tax benefits at December 30, 2012	$	519,611
Gross increases - tax positions in prior periods	197,310
Lapse of statute of limitations	(57,921		)

Unrecognized tax benefits at December 28, 2013	659,000
Gross increases - tax positions in prior periods	157,657
Lapse of statute of limitations	(70,657		)

Unrecognized tax benefits at December 27, 2014	746,000
Gross increases - tax positions in prior periods	229,191
Lapse of statute of limitations	(109,191		)

Unrecognized tax benefits at December 26, 2015	$	866,000

The entire balance of approximately $866,000 at December 26, 2015, included in accrued income taxes, relates to unrecognized tax positions that, if recognized, would affect the annual effective tax rate. The Company is subject to U.S. federal income tax as well as various state taxes. The Company is no longer subject to examination by federal taxing authorities for the fiscal year ended 2011 and earlier. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease over the next twelve months. Interest and penalties related to income tax matters are recognized in income tax expense. Interest and penalties accrued for, and recognized during, the fiscal years ended December 26, 2015, December 27, 2014, and December 28, 2013 were immaterial.