8 .	INCOME TAXES

GAAP prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

December 2017,

The Tax Cuts and Jobs Act of

2017

(TCJA) was signed into law. The law includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from

35%

21%,

elimination of Alternative Minimum Tax (AMT) and refund of AMT credit carryforward, limitations on the deductibility of interest expense and executive compensation, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. The TCJA also establishes new tax laws that will affect future periods, including, but

not

limited to: (

) reducing the U.S. federal corporate tax rate; (

) limiting deductible interest expense; (

) modifying the tax treatment of like-kind exchanges; (

) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (

) imposing a new provision designed to tax global intangible low-tax income; (

) creating the base erosion anti-abuse tax, a new minimum tax; (

) limiting the use of Net Operating Loss (NOL) carryforwards created in tax years beginning after

December 31, 2017; (

) modifying the limitations on the use of foreign tax credits to reduce our U.S. income tax liability; and (

) further restricting the deductibility of certain executive compensation and fringe benefits. The Company is in the process of analyzing the regulations issued and determining an estimate of the financial impact

Reconciliations between the total income tax benefit and the amount computed using the statutory federal rate of

21%

for the years ended

December 31, 2018

and

2017

were as follows:

	2018			2017
	(in thousands)
Federal income tax expense (credit) at statutory rate	$	(945	)	$	3,815
Adjusted for:
AMT refundable credits		(4,999	)
Valuation allowance		986			(3,814	)
Permanent differences and other		(41	)		(1	)
Income tax benefit	$	(4,999	)	$	-

Deferred tax assets were comprised of the following temporary differences as of

December

31,

2018

and

2017:

	2018			2017
	(in thousands)
Net operating loss and tax credit carryforwards	$	24,239		$	25,745
Joint venture and other investments		(27	)		(22	)
Accrued retirement benefits		3,055			2,483
Property net book value		2,266			1,716
Deferred revenue		666			546
Stock compensation		16			13
Reserves and other		189			(115	)
Total deferred tax assets		30,404			30,366
Valuation allowance		(30,404	)		(30,366	)
Net deferred tax assets	$	-		$	-

Valuation allowances have been established to reduce future tax benefits

not

expected to be realized. The change in the deferred tax asset related to accrued retirement benefits and the valuation allowance includes the pension adjustment included in accumulated other comprehensive loss, which is

not

included in the current provision. The Company had

$71.7

million in federal NOL carry forwards at

December

31,

2018,

that expire from

2029

through

2034.

The Company had

$85.7

million in state NOL carry forwards at

December 31, 2018,

that expire from

2029

through

2034.

The Company had

$2.6

million in federal and state NOL carry forwards at

December 31, 2018

that do

not

expire.

In accordance with TCJA, the Company eliminated

$91.3

million of AMT NOL carry forwards at

December 31, 2018

and recognized as income tax benefit

$5.0

million from its unused AMT credit carry forwards. The Company expects to receive

50%,

$2.5

million, of said credit in

2019

and the remaining balance to be received over the following

two

years.

In accordance with SAB

118,

during the year ended

December 31, 2017,

we recorded an adjustment of

$12.1

million to the deferred tax assets and valuation allowance as a result of the TCJA’s reduction of the Federal corporate from

35%

21%.