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FEDERAL AND STATE CURRENT AND DEFERRED INCOME TAX
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
FEDERAL AND STATE CURRENT AND DEFERRED INCOME TAX FEDERAL AND STATE CURRENT AND DEFERRED INCOME TAX
The Company and its subsidiaries file a consolidated federal income tax return. Companies that are less than 80% owned corporations, or entities that are treated as partnerships for federal income tax purposes, file separate federal income tax returns. All of the Company’s pre-tax book income from continuing operations in each of the two years ended December 31, 2021 and 2020 was generated in the U.S. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The Company’s income tax (provision) benefit for federal and state income taxes consisted of the following (in thousands):
Year Ended December 31,
20212020
Current tax (provision) benefit$(55)$(7)
Deferred tax benefit18,165 9,340 
Total income tax benefit$18,110 $9,333 

The difference between income taxes provided at the Company’s federal statutory rate and effective tax rate was as follows (in thousands):
Year Ended December 31,
20212020
Federal income tax (provision) benefit at statutory rate$(3,108)$(147)
Change in valuation allowance21,718 10,275 
State taxes, net of federal benefit(338)373 
Expired credits(1,505)
Deferred Tax true ups66 362 
Other(228)(25)
Total income tax benefit$18,110 $9,333 
The significant components of deferred income tax assets and liabilities were as follows (in thousands):
December 31,
20212020
Deferred tax assets:
Net operating losses, capital losses, and tax credit carryforwards$54,449 $57,901 
Impairment loss on water assets9,155 9,864 
Employee benefits, including stock-based compensation1,098 556 
Excess tax basis in affiliate459 475 
Fixed assets674 700 
Other, net441 450 
Total deferred tax assets66,276 69,946 
Deferred tax liabilities:
Revaluation of real estate and water assets2,005 2,072 
Other, net399 449 
Total deferred tax liabilities2,404 2,521 
Valuation allowance(36,367)(58,085)
Net deferred income tax asset$27,505 $9,340 

Deferred tax assets and liabilities and federal income tax expense in future years can be significantly affected by changes in circumstances that would influence management’s conclusions as to the ultimate realization of deferred tax assets. Valuation allowances are established and maintained for deferred tax assets on a “more likely than not” threshold. At December 31, 2011, the Company considered it more likely than not that the deferred tax assets would not be realized and a full valuation allowance was provided. At December 31, 2020, after evaluating the evidence, including positive objective evidence in the form of three years of cumulative historical pre-tax book income, management concluded that there was sufficient positive evidence to enable the Company to conclude that it was “more likely than not” that certain of these deferred tax assets would be realized, and the Company released a portion of the valuation allowance which resulted in the recognition of certain deferred tax assets with a corresponding decrease to income tax expense of $9.3 million for the year ended December 31, 2020. At December 31, 2021 an additional $21.7 million of valuation allowance was released.

The Company had net operating loss carryforwards, federal tax credit carryforwards, and state capital loss carryforwards as of December 31, 2021, that will expire if not utilized. The following table summarizes such carryforwards and their expiration as follows (in thousands):
Federal Net Operating LossesFederal Tax CreditsState Net Operating LossesState and Federal Capital Losses
Expire 2022$— $177 $— $82,807 
Expire 2023 through 2027— 445 — 1,435 
Expire 2028 through 203234,745 3,459 34,097 — 
Expire 2033 through 203898,705 1,104 91,842 — 
Indefinite Expiry6,256 — — — 
Total$139,706 $5,185 $125,939 $84,242 

Utilization of the Company's U.S. federal and certain state net operating loss and tax credit carryovers may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. As of December 31, 2021, the Company believes that utilization of its federal net operating losses and federal tax credits are not limited under any ownership change limitations provided under the Internal Revenue Code. The tax benefit preservation plan readopted by the Company in 2020 provides protections to preserve the Company’s ability to utilize its net operating loss carryforwards as a result of certain stock ownership changes in the future.
The Company does not have any uncertain tax benefits recorded for the years ended December 31, 2021 and 2020. The Company’s policy is to recognize interest and penalties related to uncertain tax benefits in its provision for income taxes. For the years ended December 31, 2021 and 2020 the Company has not recorded any interest or penalties related to uncertain tax benefits.The Company is subject to taxation in the U.S. and various state jurisdictions. As of December 31, 2021, the Company's statute is open from 2017 and 2016 forward for federal and for state tax purposes, respectively. However, years prior to 2016 could still be considered open for adjustment to NOL and tax credit carryforwards.