8. INCOME TAXES

The provision for income taxes consists of the following:

	Year ended December 31,

	2015		2014		2013
Current taxes:
Federal	$	4,428,345	$	1,939,831	$	2,724,597
State		49,185		17,872		25,491
Total current taxes		4,477,530		1,957,703		2,750,088
Deferred taxes:
Federal		452,760		425,126		(68,296	)
State		3,038		3,878		3,024
Total deferred taxes		455,798		429,004		(65,272	)
Total provision for income taxes	$	4,933,328	$	2,386,707	$	2,684,816

The effective income tax rate of the Company differs from the federal statutory tax rate of 34% due to the following items:

	Year ended December 31,

	2015			2014			2013
Statutory rate		34.00	%		34.00	%		34.00	%
State income taxes, net of federal income tax benefit		0.25	%		0.17	%		0.21	%
Stock-based compensation		(0.46	)%		(0.40	)%		0.11	%
Miscellaneous other, net		0.11	%		0.17	%		(0.64	)%
Effective tax rate (benefit)		33.90	%		33.94	%		33.68	%

The effective rate reconciliation includes the permanent differences and changes in valuation allowance for windfalls and stock-based compensation, and net operating loss.

Deferred income taxes reflect the 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 components of deferred income tax assets and liabilities are as follows:

	Year ended December 31,

	2015		2014		2013
Deferred revenue	$	33,823	$	50,722	$	71,062
Other		98,744		96,501		71,305
Options		490,405		931,548		1,365,409
Net deferred tax asset	$	622,972	$	1,078,771	$	1,507,776

Stock-based compensation, recorded in the Company's consolidated financial statements, is non-deductible for tax purposes and increases the Company's effective tax rate. Deferred tax assets, including those associated with stock based compensation, are reviewed and adjusted for apportionment and potential tax rates changes in various jurisdictions.

During 2015, the Company has recorded $3.8 million of excess tax benefits resulting from the exercise of stock options which was recorded in additional paid in capital.

As of December 31, 2015, the Company believes that there are no significant uncertain tax positions, and no amounts have been recorded for interest and penalties. The tax periods open to examination by the major taxing jurisdictions to which the Company is subject include fiscal years 2012 through 2015.