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Provision for Income Taxes
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Provision for Income Taxes

Note 6 – Provision for income taxes:

 

 

Three months ended

 

 

Six months ended

 

 

June 30,

 

 

June 30,

 

 

2019

 

 

2020

 

 

2019

 

 

2020

 

 

(In thousands)

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected tax expense, at the U.S. federal statutory

   income tax rate of 21%

$

1,354

 

 

$

575

 

 

$

2,431

 

 

$

1,757

 

State income taxes

 

224

 

 

 

97

 

 

 

403

 

 

 

294

 

FDII benefit

 

(29

)

 

 

(4

)

 

 

(148

)

 

 

(32

)

Other, net

 

6

 

 

 

6

 

 

 

10

 

 

 

11

 

Total provision for income taxes

$

1,555

 

 

$

674

 

 

$

2,696

 

 

$

2,030

 

 

We qualify for the foreign derived intangible income (FDII) deduction.  We recognized a current cash tax benefit of $32,000 in the first six months of 2020 and $148,000 in the first six months of 2019 ($98,000 of our 2019 current cash tax benefit is related to 2018).

On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, modifications to the limitation of business interest for 2019 and 2020 and technical corrections to tax depreciation methods for qualified improvement property.  We have evaluated the relevant provisions of the CARES Act and determined the impact is not material to our tax provision.