NOTE 7. INCOME TAXES
Income tax provisions for fiscal 2013 through 2015 consisted of the following:


	Year Ended March 31
	2015		2014		2013
Current taxes
Federal	$	6,608,923	$	5,010,734	$	5,314,876
State	330,971		304,931		377,215
Deferred taxes
Federal	125,070		61,306		34,718
State	6,356		3,103		810
Income tax provision	$	7,071,320	$	5,380,074	$	5,727,619

A reconciliation of income tax provisions at the U.S. statutory rate for fiscal 2013 through 2015 is as follows:


	Year Ended March 31
	2015			2014			2013
Tax expense at U.S. statutory rate	$	7,503,886		$	5,667,281		$	6,046,264
State income taxes, net of Federal benefit		216,518			199,751			244,691
Domestic manufacturing deduction		(600,207	)		(443,708	)		(460,723	)
Municipal interest		(11,489	)		(28,456	)		(118,282	)
Other		(37,388	)		(14,794	)		15,669
Income tax provision	$	7,071,320		$	5,380,074		$	5,727,619

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of March 31, 2015 and 2014 were as follows:


	March 31
	2015			2014
Vacation accrual	$	114,217		$	137,052
Inventory reserve	65,394			107,173
Depreciation	(63,631		)	(37,131		)
Stock-based compensation deductions	107,570			120,009
Unrealized gain on marketable securities	(425,922		)	(500,904		)
Other	28,716			56,588
Net deferred tax liabilities	$	(173,656	)	$	(117,213	)
Reported as:
Deferred tax assets	$	102,052		$	237,387
Long-term deferred tax liabilities		(275,708	)		(354,600	)
Net deferred tax liabilities	$	(173,656	)	$	(117,213	)

     Realizations of stock-based compensation deductions are credited to "Additional paid-in capital" and included in "Tax benefit of stock-based compensation" on our statements of shareholders' equity. Credits of $24,288 in fiscal 2015 and $57,472 in fiscal 2014 were attributed to stock-based compensation deductions. The "Additional paid-in capital" credits also included the tax benefit of stock-based compensation deductions in those years.

     The amounts credited to "Additional paid-in capital" were the tax benefits of the deductions to the extent they exceeded the corresponding compensation expense recognized for financial reporting purposes. "Tax benefit of stock-based compensation" represented the tax benefits of deductions for stock-based compensation to the extent they exceeded the corresponding compensation expense recognized for financial reporting purposes. Cash we received from the exercise of stock options related to excess tax benefits is included in "Proceeds from sale of common stock" in the statement of cash flows for the year in which the option was exercised and cash received.

     We had $122,163 of state net operating losses at March 31, 2015, compared to $41,084 of Federal net operating losses and $131,596 of state net operating losses at March 31, 2014. These net operating losses expire in fiscal 2020 and are subject to limitation including limitation under the Internal Revenue Code.

     We had no unrecognized tax benefits as of March 31, 2015, and we do not expect any significant unrecognized tax benefits within 12 months of the reporting date. We recognize interest and penalties related to income tax matters in income tax expense. As of March 31, 2015 we had no accrued interest related to uncertain tax positions. The tax years 1999 through 2014 remain open to examination by the major taxing jurisdictions to which we are subject.