Note 6. Income Taxes

The income tax provision for the first half of fiscal 2014 and 2013 was as follows:


	Six months ended
	May 31, 2014			May 31, 2013
	(In millions)
Federal and state current income tax expense	$	4.8		$	7.4
Net deferred (benefit) expense		(4.1	)		1.6
Impact of change in research credit estimates		1.1			(2.0	)

Income tax provision	$	1.8		$	7.0

Cash paid for income taxes	$	1.7		$	4.9

The effective tax rate for the first half of fiscal 2014 is (3.6%) and differs from the federal statutory rate of 35% primarily due to the significant non-deductible premium on the 4¹/₁₆% Debentures repurchased during the first half of fiscal 2014, which the Company has treated for tax purposes as a non-recurring, discrete event due to the inability to accurately estimate an annualized total, as well as the impacts from state income taxes, changes in estimates related to the fiscal 2012 research and development credits, and certain expenditures which are permanently not deductible for tax purposes. The effective tax rate for the first half of fiscal 2013 was (37.2%) and differs from the federal statutory tax rate of 35% primarily due to the impact of the change in the valuation allowance, certain permanently non-deductible items (principally interest) and state income taxes, offset by the benefit from the federal re-enactment of the research and development credit retroactive to fiscal 2012.

As of May 31, 2014, the total liability for uncertain income tax positions, including accrued interest and penalties was $6.7 million. Due to the high degree of uncertainty regarding the timing of potential future cash flows associated with the respective liabilities, the Company is unable to make a reasonably reliable estimate of the amount and period in which these liabilities might be paid. It is reasonably possible that a reduction of up to $0.3 million of unrecognized tax benefits and related interest may occur within the next 12 months as a result of the expiration of certain statute of limitations.