8. Income Taxes

Our provision (benefit) for income taxes consists of the following:


	For the Year Ended
	December 31,
	2014		2013			2012
Current—Federal	$	5	$	539	$	1,274
State		1,647		1,371		1,488
Foreign		150		65		(134)
		1,802		1,975		2,628
Deferred—Federal		-		(6,132)		(535)
State		-		(910)		(80)
Foreign		143		(27)		(401)
		143		(7,069)		(1,016)
	$	1,945	$	(5,094)	$	1,612

A reconciliation of our effective tax rate and the U.S. Federal statutory income tax rate is as follows:



	For the Year Ended
	December 31,
	2014	2013	2012
Taxes at statutory U.S. federal income tax rate	35.0%	35.0%	35.0%
Nontaxable income of HPT	(35.0%)	(35.0%)	(35.0%)
State and local income taxes, net of federal tax benefit	1.0%	1.1%	1.0%
Foreign taxes	0.1%	0.1%	(0.3%)
Organizational structure change	0.0%	(5.8%)	0.0%
Change in valuation allowance	4.0%	14.4%	7.1%
Other differences, net	(3.9%)	(14.3%)	(6.8%)
Effective tax rate	1.2%	(4.2%)	1.0%

Deferred income tax balances reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities on our balance sheet and the amounts used for income tax purposes and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Significant components of our deferred tax assets and liabilities are as follows:


	For the Year Ended
	December 31,
	2014		2013
Deferred tax assets:
Tax credits	$	12,091	$	12,091
Tax loss carryforwards		123,804		115,209
Other		3,248		3,842
		139,143		131,142
Valuation allowance		(138,537)		(130,346)
		606		796
Deferred tax liabilities:
Hotel basis difference		(9,122)		(9,142)
		(9,122)		(9,142)
Net deferred tax liabilities	$	(8,516)	$	(8,346)

Net deferred tax liabilities are included in accounts payable and other liabilities in the accompanying Consolidated Balance Sheets.

On January 31, 2007, we succeeded to certain tax attributes in connection with our acquisition of TravelCenters of America, Inc., including net operating loss carryforwards and tax credit carryforwards. At December 31, 2014 and 2013, we had a net deferred tax asset, prior to any valuation allowance, of $61,663 and $64,760, respectively, related to these carryover tax attributes. Because of the uncertainty surrounding our ability to realize the future benefit of these assets we have provided a 100% valuation allowance as of December 31, 2014 and 2013. As of December 31, 2014 these carryover tax attributes consist of: (i) net operating loss carryforwards for federal income tax purposes of approximately $136,420 which begin to expire in 2026 if unused, (ii) alternative minimum tax credit carryforwards of $4,430 which do not expire, and (iii) general business tax credits of $6,646 which began to expire in 2009. The utilization of these tax loss carryforwards and tax credits is subject to limitations under Section 382 of the Internal Revenue Code.

At December 31, 2014 and 2013, our consolidated TRS had a net deferred tax asset, prior to any valuation allowance, of $71,848 and $60,737, respectively, which consists primarily of the tax benefit of net operating loss carryforwards and tax credits. Because of the uncertainty surrounding our ability to realize the future benefit of these assets, we have provided a 100% valuation allowance as of December 31, 2014 and 2013. As of December 31, 2014, our consolidated TRS had net operating loss carryforwards for federal income tax purposes of approximately $186,839 which begin to expire in 2023 if unused.