8. Income taxes

Income tax benefit from continuing operations for the nine months ended September 30, 2013 was $1.9 million. The difference between the actual tax benefit of $1.9 million and the expected income tax benefit of $7.0 million, based on the Canadian enacted statutory rate of 25%, is primarily due to a goodwill impairment of $13.7 million, a $4.5 million increase in the valuation allowance, $6.2 million in dividend withholding and preferred share taxes, and $5.2 million of changes in estimates at joint venture projects. This is partially offset by $19.4 million related to 1603 Treasury grant proceeds, $3.9 million of foreign exchange, and $1.0 million of other permanent differences.

	Three months ended September 30,					Nine months ended September 30,

	2013			2012		2013			2012
Current income tax expense	$	5.4		$	1.9	$	10.8		$	6.1
Deferred tax (benefit) expense		(5.4	)		1.2		(12.7	)		(25.2	)

Total income tax (benefit) expense	$	—		$	3.1	$	(1.9	)	$	(19.1	)

As of September 30, 2013, we have recorded a valuation allowance of $122.0 million. The amount is comprised primarily of provisions against Canadian and U.S. net operating loss carryforwards. In assessing the recoverability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon projected future taxable income in the United States and in Canada and available tax planning strategies.