	2018		2017
Current provision:
Federal	$	392	$	1,807
State		77		12
Total current provision		469		1,819
Deferred provision:
Federal		122		859
State		28		149
Total deferred provision		150		1,008
Provision:
Federal		514		2,666
State		105		161
Total provision	$	619	$	2,827

Income tax expense at the statutory tax rate is reconciled to the overall income tax expense for the years ended December 31 as follows:

	2018			2017
Federal income tax at statutory rates	$	598		$	2,546
State income taxes, net of federal tax effect		83			229
Permanent differences		7			11
Nondeductible stock-based compensation		30			88
Benefit from domestic manufacturing deduction		-			(229	)
Impact of change in federal tax rate		(56	)		193
Foreign-derived intangible income deduction		(40	)		-
Other		(3	)		(11	)
Provision for income taxes	$	619		$	2,827

Deferred income taxes are based on estimated future tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes given the provision of enacted tax laws. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted which, among other things, lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, and resulted in adjustments to deferred tax assets and liabilities. The TCJA implemented the foreign-derived intangible income deduction, which provides a deduction for sales of goods or services to foreign customers, but also repealed the domestic manufacturing deduction beginning in 2018. The net deferred tax assets and liabilities as of December 31, 2018 and 2017 are comprised of the following:

	2018			2017
Deferred tax assets:
Accounts receivable	$	171		$	196
Inventories		66			114
Accrued vacation and bonus		36			25
Intangibles and Goodwill		89			83
Other		21			15
Total deferred tax assets		383			433
Deferred tax liabilities:
Accumulated depreciation for tax purposes		(149	)		(49	)
Total deferred tax liabilities		(149	)		(49	)
Net deferred tax asset	$	234		$	384

During 2018, the Company utilized all state net operating loss carryovers of approximately $846.

Accounting for uncertainty in income taxes is based on 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. We recognize in our consolidated financial statements only those tax positions that are more-likely-than-not to be sustained as of the adoption date, based on the technical merits of the position. Each year we perform a comprehensive review of our material tax positions.

Our policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. As we had no uncertain tax benefits during 2018 and 2017, we had no accrued interest or penalties related to uncertain tax positions in either year.

We and our subsidiaries are subject to the following material taxing jurisdictions: United States and Colorado. The tax years that remain open to examination by the Internal Revenue Service are 2015 and years thereafter. The tax years that remain open to examination by the State of Colorado are 2014 and years thereafter.