INCOME TAXES

The income tax provision consists of the following:



(In millions)	For the Years Ended December 31,
	2015		2014		2013
Income before provision for income taxes:	$	474.5	$	420.9	$	398.2
Current provision for income taxes:
Federal	127.9		90.9		128.4
State	10.6		7.3		7.4
	138.5		98.2		135.8
Deferred provision for income taxes:
Federal	33.7		52.0		8.7
State	1.9		4.1		0.1
	35.6		56.1		8.8
Interest and penalties expense:
Interest	0.7		0.4		0.5
Penalties	—		—		—
	0.7		0.4		0.5
Provision for income taxes	$	174.8	$	154.7	$	145.1

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities consist of the following:



(In millions)	As of December 31,
	2015		2014
Deferred tax assets:
Allowance for credit losses	$	89.8	$	76.4
Stock-based compensation	18.8		14.8
Deferred state net operating loss	5.1		3.9
Other, net	11.3		9.2
Total deferred tax assets	125.0		104.3
Deferred tax liabilities:
Valuation of Loans receivable	364.2		306.5
Deferred Loan origination costs	2.5		2.7
Other, net	7.2		8.5
Total deferred tax liabilities	373.9		317.7
Net deferred tax liability	$	248.9	$	213.4

The deferred state net operating loss tax asset arising from the operating loss carry forward for state income tax purposes is expected to expire at various times beginning in 2022, if not utilized. We do not anticipate expiration of the net operating loss carry forwards prior to their utilization.

A reconciliation of the U.S. federal statutory rate to our effective tax rate is as follows:



	For the Years Ended December 31,
	2015		2014		2013
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes	1.6	%	1.7	%	1.1	%
Other	0.2	%	0.1	%	0.3	%
Effective tax rate	36.8	%	36.8	%	36.4	%

The differences between the U.S. federal statutory rate and our effective tax rates for 2015, 2014 and 2013 are primarily due to state income taxes. The increases in the effective tax rates over the three year period were primarily due to higher effective tax rates in certain state tax jurisdictions.

The following table is a summary of changes in gross unrecognized tax benefits:



(In millions)	For the Years Ended December 31,
	2015			2014			2013
Unrecognized tax benefits at January 1,	$	16.6		$	13.2		$	11.0
Additions based on tax positions related to current year	7.4			5.5			3.6
Reductions for tax positions of prior years	—			(0.2		)	—
Settlements	—			—			—
Reductions as a result of a lapse of the statute of limitations	(2.2		)	(1.9		)	(1.4		)
Unrecognized tax benefits at December 31,	$	21.8		$	16.6		$	13.2

The total amount of gross unrecognized tax benefit that, if recognized, would favorably affect our effective income tax rate in future periods, was $21.8 million as of December 31, 2015. Accrued interest related to uncertain tax positions was $3.8 million and $3.1 million as of December 31, 2015 and 2014, respectively.

We are subject to income tax in federal and state jurisdictions. The IRS has completed their federal tax examinations for years prior to 2012. With respect to state jurisdictions, we are generally no longer subject to tax examinations on returns filed for years prior to 2008.