As a limited partnership, we are not subject to federal and state income taxes. However, our corporate subsidiaries are subject to income taxes. Income tax attributable to our taxable income (including any dividend income from our corporate subsidiaries), which may differ significantly from income for financial statement purposes, is assessed at the individual limited partner unitholder level. Individual unitholders have different investment basis depending upon the timing and price at which they acquired their common units. Further, each unitholder’s tax accounting, which is partially dependent upon the unitholder’s tax position, differs from the accounting followed in the Partnership’s financial statements. Accordingly, the aggregate difference in the basis of the Partnership’s net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes in the Partnership is not available to the Partnership.

We are subject to a statutory requirement that non-qualifying income, as defined by the Internal Revenue Code, cannot exceed 10% of total gross income for the calendar year. If non-qualifying income exceeds this statutory limit, we would be taxed as a corporation. The non-qualifying income did not exceed the statutory limit in any period presented.

Certain activities that generate non-qualifying income are conducted through our wholly owned taxable corporate subsidiary, LGWS. Current and deferred income taxes are recognized on the earnings of LGWS. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Partnership calculates its current and deferred tax provision based on estimates and assumptions that could differ from actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed on March 27, 2020, which establishes a five-year carryback of net operating losses (NOLs) generated in 2018, 2019 and 2020 and temporarily suspends the 80% limitation on the use of NOLs in 2018, 2019 and 2020. The CARES Act also increases the adjusted taxable income limitation from 30% to 50% for business interest deductions under IRC Section 163(j) for 2019 and 2020. As a result of the CARES Act, we expect to carry back $16.9 million in net operating tax losses generated in 2020 to tax years 2015 through 2018, which resulted in the recording of an incremental current benefit of $1.0 million, representing the difference between the tax at the 21% statutory rate in 2020 as compared the 34% statutory rate at the time for 2015 through 2018.

Components of income tax expense related to net income were as follows (in thousands):

	For the Year Ended December 31,
	2020			2019			2018
Current
U.S. federal	$	(3,973	)	$	(4,865	)	$	1,117
U.S. state		461			66			411
Total current		(3,512	)		(4,799	)		1,528

Deferred
U.S. federal		(491	)		4,895			(2,737	)
U.S. state		(3,945	)		(1,326	)		(1,524	)
Total deferred		(4,436	)		3,569			(4,261	)
Income tax benefit	$	(7,948	)	$	(1,230	)	$	(2,733	)

The difference between the actual income tax provision and income taxes computed by applying the U.S. federal statutory rate to earnings (losses) before income taxes is attributable to the following (in thousands):

	For the Year Ended December 31,
	2020			2019			2018
Consolidated income from continuing operations before income taxes - all domestic	$	99,508		$	16,846		$	2,513
Income from continuing operations before income taxes of non-taxable entities		(119,457	)		(16,902	)		(8,881	)
Loss from continuing operations before income taxes of corporate entities		(19,949	)		(56	)		(6,368	)
Federal income tax benefit at statutory rate		(4,189	)		(11	)		(1,337	)
Increase (decrease) due to:
Rate difference on NOL carryback ^(a)		(1,003	)		—			—
Nondeductible expenses		1			54			132
Basis difference of acquired assets		—			—			(648	)
State income taxes, net of federal income tax benefit ^(b)		(2,712	)		(995	)		(880	)
Non-taxable refund		(45	)		(278	)		—
Total income tax benefit	$	(7,948	)	$	(1,230	)	$	(2,733	)

The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in thousands):

	December 31,
	2020		2019
Deferred income tax assets:
Deferred rent expense	$	175	$	256
Operating and finance lease obligations		40,274		26,003
Asset retirement obligations		9,847		8,075
Intangible assets		9,994		8,736
Other assets		7,361		2,535
Total deferred income tax assets		67,651		45,605

Deferred income tax liabilities:
Deferred rent income		1,036		1,249
Property and equipment		46,174		44,095
Right-of-use assets		35,463		19,630
Total deferred income tax liabilities		82,673		64,974
Net deferred income tax liabilities	$	15,022	$	19,369

We record an accrual for federal, state and local and uncertain tax positions. The development of these tax positions requires subjective, critical estimates and judgments about tax matters, potential outcomes and timing. Although the outcome of potential tax examinations is uncertain, in management’s opinion, adequate provisions for income taxes have been made for potential liabilities resulting from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact on our financial condition and results of operations. Differences between actual results and assumptions, or changes in assumptions in future periods, are recorded in the period they become known. To the extent additional information becomes available prior to resolution, such accruals are adjusted to reflect probable outcomes.

We did not have unrecognized tax benefits at December 31, 2020 or 2019. Our practice is to recognize interest and penalties related to income tax matters in income tax expense. We had no material interest and penalties for 2020, 2019 and 2018.

We file income tax returns with the U.S. federal government as well as the many state jurisdictions in which we operate. The statute remains open for tax years 2017 through 2020; therefore, these years remain subject to examination by federal, state and local jurisdiction authorities.