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INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]  
INCOME TAXES
12. INCOME TAXES:
 
The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2023, 2022, and 2021 (in millions):
 
 202320222021
Current provision (benefit) for income taxes:   
Federal$5 $6 $(78)
State(5)3 2 
 — 9 (76)
Deferred (benefit) provision for income taxes:   
Federal(342)868 (93)
State(16)36 (4)
 (358)904 (97)
(Benefit) provision for income taxes$(358)$913 $(173)
The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:
 202320222021
Federal statutory rate21.0 %21.0 %21.0 %
Adjustments:   
State income taxes, net of federal tax benefit (a)4.6 %2.0 %(4.2)%
Valuation allowance (b)30.6 %1.6 %(1.5)%
Noncontrolling interest (c)0.4 %0.2 %2.6 %
Federal tax credits (d)0.6 %(0.2)%10.6 %
Net Operating Loss Carryback (e)— %— %7.5 %
Other(0.9)%0.7 %(1.3)%
Effective income tax rate56.3 %25.3 %34.7 %

(a)Included in state income taxes are deferred income tax effects related to certain acquisitions, intercompany mergers, tax elections, law changes and/or impact of changes in apportionment.
(b)Our 2023 income tax provision includes a $212 million decrease related to the release of valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j). Our 2022 income tax provision includes a net $56 million addition related to an increase in valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j) and primarily offset by a decrease in valuation allowance on certain state deferred tax assets resulting from the Deconsolidation of Diamond. Our 2021 income tax provision includes a net $8 million addition related to an increase in valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j) and primarily offset by a decrease in valuation allowance on certain state deferred tax assets as a result of the changes in estimate of the state apportionment.
(c)Our 2023, 2022, and 2021 income tax provisions include a $3 million benefit, a $9 million expense, and a $13 million benefit, respectively, related to noncontrolling interest of various partnerships.
(d)Our 2021 income tax provision includes a benefit $40 million related to investments in sustainability initiatives whose activities qualify for federal income tax credits through 2021.
(e)Our 2021 income tax provision includes a benefit of $38 million as result of the CARES Act allowing for the 2020 federal net operating loss to be carried back to the pre-2018 years when the federal tax rate was 35%.
Temporary differences between the financial reporting carrying amounts and the tax bases of assets and liabilities give rise to deferred taxes. Total deferred tax assets and deferred tax liabilities as of December 31, 2023 and 2022 were as follows (in millions):
 20232022
Deferred Tax Assets:  
Net operating losses:  
Federal$111 $14 
State151 131 
IRC Section 163(j) interest expense carryforward93 212 
Investment in Bally's securities83 70 
Tax Credits87 79 
Other118 98 
 643 604 
Valuation allowance for deferred tax assets(120)(312)
Total deferred tax assets$523 $292 
Deferred Tax Liabilities:  
Goodwill and intangible assets$(367)$(384)
Property & equipment, net(104)(110)
Investment in DSIH(250)(356)
Other(54)(52)
Total deferred tax liabilities(775)(902)
Net deferred tax liabilities$(252)$(610)

At December 31, 2023, the Company had approximately $527 million and $3,236 million of gross federal and state net operating losses, respectively. Except for those without an expiration date, these losses will expire during various years from 2024 to 2043, and some of them are subject to annual limitations under the IRC Section 382 and similar state provisions. As discussed in Income Taxes within Note 1. Nature of Operations and Summary of Significant Accounting Policies, we establish a valuation allowance in accordance with the guidance related to accounting for income taxes. As of December 31, 2023, a valuation allowance has been provided for deferred tax assets related to certain temporary basis differences and a substantial portion of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies, current and cumulative losses, and projected future taxable income. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that they will be realized in the future. During the year ended December 31, 2023, we decreased our valuation allowance by $192 million to $120 million. The decrease was primarily due to the release of valuation allowance related to interest expense carryforwards under the IRC Section 163(j) offset by a change in judgement in the realizability of certain state deferred tax assets. During the year ended December 31, 2022, we increased our valuation allowance by $56 million to $312 million. The increase was primarily due to uncertainty in the realizability of deferred tax assets related to interest expense carryforwards under the IRC Section 163(j), offset by a change in judgement in the realizability of certain state deferred tax assets.
 
The following table summarizes the activity related to our accrued unrecognized tax benefits (in millions):
 202320222021
Balance at January 1,$17 $15 $11 
Additions related to prior year tax positions— 2 1 
Additions related to current year tax positions1 1 3 
Reductions related to settlements with taxing authorities(2)— — 
Reductions related to expiration of the applicable statute of limitations(2)(1)— 
Balance at December 31,$14 $17 $15 

We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. Our 2014 through 2020 federal tax returns are currently under audit, and several of our subsidiaries are currently under state examinations for various years. We do not anticipate that resolution of these matters will result in a material change to our consolidated financial statements. In addition, we believe that our liability for unrecognized tax benefits could be reduced by up to $1 million, in the next twelve months, as a result of expected statute of limitations expirations and resolution of examination issues and settlements with tax authorities.
Sinclair Broadcast Group, LLC  
Operating Loss Carryforwards [Line Items]  
INCOME TAXES
11. INCOME TAXES:

The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2023, 2022, and 2021 (in millions):
 202320222021
Current provision (benefit) for income taxes:   
Federal$5 $6 $(78)
State(5)3 2 
 — 9 (76)
Deferred (benefit) provision for income taxes:
Federal(331)868 (93)
State(28)36 (4)
 (359)904 (97)
(Benefit) provision for income taxes$(359)$913 $(173)
The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:
 202320222021
Federal statutory rate21.0 %21.0 %21.0 %
Adjustments:
State income taxes, net of federal tax benefit (a)4.7 %2.0 %(4.2)%
Valuation allowance (b)33.5 %1.6 %(1.5)%
Noncontrolling interest (c)0.5 %0.2 %2.6 %
Federal tax credits (d)0.6 %(0.2)%10.6 %
Net Operating Loss Carryback (e)— %— %7.5 %
Other(0.9)%0.7 %(1.3)%
Effective income tax rate59.4 %25.3 %34.7 %
(a)Included in state income taxes are deferred income tax effects related to certain acquisitions, intercompany mergers, tax elections, law changes and/or impact of changes in apportionment.
(b)SBG’s 2023 income tax provision includes a $212 million decrease related to the release of valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j). SBG’s 2022 income tax provision includes a net $56 million addition related to an increase in valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j) and primarily offset by a decrease in valuation allowance on certain state deferred tax assets resulting from the Deconsolidation of Diamond. SBG’s 2021 income tax provision includes a net $8 million addition related to an increase in valuation allowance associated with the federal interest expense carryforwards under the IRC Section 163(j) and primarily offset by a decrease in valuation allowance on certain state deferred tax assets as a result of the changes in estimate of the state apportionment.
(c)SBG's 2023, 2022, and 2021 income tax provisions include a $3 million benefit, a $9 million expense, and a $13 million benefit, respectively, related to noncontrolling interest of various partnerships.
(d)SBG's 2021 income tax provision included a benefit of $40 million related to investments in sustainability initiatives whose activities qualify for federal income tax credits through 2021.
(e)SBG's 2021 income tax provision included a benefit of $38 million as result of the CARES Act allowing for the 2020 federal net operating loss to be carried back to the pre-2018 years when the federal tax rate was 35%.

Temporary differences between the financial reporting carrying amounts and the tax bases of assets and liabilities give rise to deferred taxes. Total deferred tax assets and deferred tax liabilities as of December 31, 2023 and 2022 were as follows (in millions):
 20232022
Deferred Tax Assets:
Net operating losses:
Federal$97 $14 
State152 131 
IRC Section 163(j) interest expense carryforward93 212 
Investment in Bally's securities6 70 
Tax Credits87 79 
Other112 98 
547 604 
Valuation allowance for deferred tax assets(113)(312)
Total deferred tax assets$434 $292 
Deferred Tax Liabilities:
Goodwill and intangible assets$(334)$(384)
Property & equipment, net(98)(110)
Investment in DSIH(250)(356)
Other(35)(52)
Total deferred tax liabilities(717)(902)
Net deferred tax liabilities$(283)$(610)
At December 31, 2023, SBG had approximately $462 million and $3,222 million of gross federal and state net operating losses, respectively. Except for those without an expiration date, these losses will expire during various years from 2024 to 2043, and some of them are subject to annual limitations under the IRC Section 382 and similar state provisions. As discussed in Income taxes under Note 1. Nature of Operations and Summary of Significant Accounting Policies, SBG establishes valuation allowance in accordance with the guidance related to accounting for income taxes. As of December 31, 2023, a valuation allowance has been provided for deferred tax assets related to certain temporary basis differences and a substantial portion of SBG’s available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies, current and cumulative losses, and projected future taxable income. Although realization is not assured for the remaining deferred tax assets, SBG believes it is more likely than not that they will be realized in the future. During the year ended December 31, 2023, SBG decreased its valuation allowance by $199 million to $113 million. The decrease was primarily due to the release of valuation allowance related to interest expense carryforwards under the IRC Section 163(j) offset by a change in judgement in the realizability of certain state deferred tax assets. During the year ended December 31, 2022, SBG increased its valuation allowance by $56 million to $312 million. The increase was primarily due to uncertainty in the realizability of deferred tax assets related to interest expense carryforwards under the IRC Section 163(j), offset by a change in judgement in the realizability of certain state deferred tax assets.
 
The following table summarizes the activity related to SBG's accrued unrecognized tax benefits (in millions):
 202320222021
Balance at January 1,$17 $15 $11 
Additions related to prior year tax positions— 2 1 
Additions related to current year tax positions1 1 3 
Reductions related to positions transferred to Ventures(2)— — 
Reductions related to settlements with taxing authorities(2)— — 
Reductions related to expiration of the applicable statute of limitations(2)(1)— 
Balance at December 31,$12 $17 $15 

As of 2023, SBG is a subsidiary of Sinclair and is subject to U.S. federal income tax as part of the consolidated return. SBG is also subject to income tax of multiple state jurisdictions. SBG’s 2014 through 2020 federal tax returns are currently under audit, and several of SBG’s subsidiaries are currently under state examinations for various years. SBG does not anticipate that resolution of these matters will result in a material change to SBG’s financial statements. In addition, SBG believes that its liability for unrecognized tax benefits could be reduced by up to $1 million, in the next twelve months, as a result of expected statute of limitations expirations and resolution of examination issues and settlements with tax authorities.