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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consisted of the following:
| Federal |  | State |  | Total
2021 |  |  |  |  |
Current | $ | — |  |  | $ | 3,446 |  |  | $ | 3,446 |
Deferred | 3,322 |  |  | (2,676) |  |  | 646 |
Total income tax | $ | 3,322 |  |  | $ | 770 |  |  | $ | 4,092 |
2020 |  |  |  |  |
Current | $ | — |  |  | $ | 3 |  |  | $ | 3 |
Deferred | 14,692 |  |  | (2,677) |  |  | 12,015 |
Total income tax | $ | 14,692 |  |  | $ | (2,674) |  |  | $ | 12,018 |
2019 |  |  |  |  |
Current | $ | — |  |  | $ | 3 |  |  | $ | 3 |
Deferred | 15,582 |  |  | 2,086 |  |  | 17,668 |
Total income tax | $ | 15,582 |  |  | $ | 2,089 |  |  | $ | 17,671 |
The Company's 2021, 2020, and 2019 qualified tax repairs and maintenance deductions totaled $125.5 million, $164.0 million, and $70.0 million, respectively. At December 31, 2021, the Company had U.S. federal and U.S. state tax net operating loss carryforwards of approximately $130.3 million and $175.8 million respectively. The U.S. federal and U.S. state net operating loss carryforwards will both expire at various dates beginning in tax year 2028. As of December 31, 2021, the California Enterprise Zone (EZ) credit was $4.2 million net of federal tax benefit for qualified property purchased before January 1, 2015, and placed in service before January 1, 2016. The Company has carry-forward California EZ credits of $2.2 million net of federal tax benefit. Unused State of California EZ credits can carry-forward until 2024. The difference between the recorded and the statutory income tax expense is reconciled in the table below:
| 2021 |  | 2020 |  | 2019
Statutory income tax | $ | 22,065 |  |  | $ | 22,858 |  |  | $ | 16,965 |
Increase (reduction) in taxes due to: |  |  |  |  |
State income taxes net of federal tax benefit | 7,334 |  |  | 7,598 |  |  | 5,639 |
Effect of regulatory treatment of fixed asset differences | (6,327) |  |  | (9,201) |  |  | (3,696) |
Investment tax credits | (74) |  |  | (74) |  |  | (74) |
AFUDC equity | (891) |  |  | (1,392) |  |  | (1,870) |
Stock based stock compensation | 791 |  |  | 523 |  |  | 302 |
TCJA refund | (19,417) |  |  | (9,470) |  |  | — |
Other | 611 |  |  | 1,176 |  |  | 405 |
Total income tax | $ | 4,092 |  |  | $ | 12,018 |  |  | $ | 17,671 |
The effect of regulatory treatment of fixed asset differences includes estimated repair and maintenance deductions and asset related flow through items. On December 22, 2017, the U.S. government enacted expansive tax legislation commonly referred to as the TCJA. Among other provisions, the TCJA reduces the federal income tax rate from 35 percent to 21 percent beginning on January 1, 2018 and eliminated bonus depreciation for utilities. The TCJA required the Company to re-measure all existing deferred income tax assets and liabilities to reflect the reduction in the federal tax rate. During 2021, the Company analyzed its deferred tax balances, tax regulatory asset and tax regulatory liability based on 2018 GRC approved rates. As of December 31, 2021, the TCJA refund liability was $91.5 million. The Company continued working with other state regulators to finalize the refund to ensure compliance with federal normalization rules. The deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020, are presented in the following table:
| 2021 |  | 2020
Deferred tax assets: |  |  |
Developer deposits for contributions in aid of construction | $ | 31,777 |  |  | $ | 29,491 |
Net operating loss carryforward and tax credits | 24,908 |  |  | 37,326 |
Pension liability | 13,570 |  |  | 12,031 |
Income tax regulatory liability | 26,565 |  |  | 41,151 |
Operating leases liabilities | 4,310 |  |  | 4,372 |
Other | 2,439 |  |  | 2,812 |
Total deferred tax assets | 103,569 |  |  | 127,183 |
Deferred tax liabilities: |  |  |
Property related basis and depreciation differences | 362,139 |  |  | 350,923 |
WRAM/MCBA and interim rates balancing accounts | 22,124 |  |  | 39,107 |
Operating lease-right to use asset | 4,286 |  |  | 4,362 |
Other | 13,965 |  |  | 8,823 |
Total deferred tax liabilities | 402,514 |  |  | 403,215 |
Net deferred tax liabilities | $ | 298,945 |  |  | $ | 276,032 |
A valuation allowance was not required at December 31, 2021 and 2020. Based on historical taxable income and future taxable income projections over the period in which the deferred assets are deductible, management believes it is more likely than not that the Company will realize the benefits of the deductible differences. The following table reconciles the changes in unrecognized tax benefits for the periods ended December 31 2021, 2020, and 2019:
| 2021 |  | 2020 |  | 2019
Balance at beginning of year | $ | 13,960 |  |  | $ | 11,008 |  |  | $ | 9,716 |
Additions for tax positions taken during current year | 1,890 |  |  | 2,952 |  |  | 1,292 |
Balance at end of year | $ | 15,850 |  |  | $ | 13,960 |  |  | $ | 11,008 |
The Company does not expect a material change in its unrecognized tax benefits within the next 12 months. The component of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2021, was $4.1 million, with the remaining balance representing the potential deferral of taxes to later years. The Company's federal income tax years subject to an examination are from 2012 to 2021 and the state income tax years subject to an examination are from 2012 to 2021.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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