(13) INCOME TAXES

The provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended April 30,
	2021		2020
Current:
Federal	$	69	$	(36)
State and local		80		112
		149		76
Deferred:
Federal		2,219		(1,597)
State and local		275		(201)
		2,494		(1,798)
Total provision (benefit) for income taxes	$	2,643	$	(1,722)

The components of the net deferred income taxes are as follows (in thousands):


	April 30,
	2021		2020
Deferred income tax assets:
State tax loss carryforwards	$	4,296	$	4,622
U.S. federal NOL carryforward		1,384		3,746
Accrued pension costs		—		1,258
Vacation accrual		14		52
Real estate basis differences		3,976		4,096
Other		303		194
Total deferred income tax assets		9,973		13,968


Deferred income tax liabilities:
Depreciable assets		(749)		(1,341)
Deferred gains on investment assets		(2,300)		(2,277)
Prepaid pension costs		(178)		—
Other		(31)		—
Total deferred income tax liabilities		(3,258)		(3,618)
Valuation allowance for realization of certain deferred income tax assets		(3,966)		(4,270)
Net deferred income tax asset	$	2,749	$	6,080

A valuation allowance is provided when it is considered more likely than not that certain deferred tax assets will not be realized. The valuation allowance relates primarily to deferred tax assets, including net operating loss carryforwards, in states where the Company either has no current operations or its operations are not considered likely to realize the deferred tax assets due to the amount of the applicable state net operating loss or its expected expiration date. The $304,000 decrease in the valuation allowance in 2021 is related to the decrease in state net operating losses that are not expected to be realizable.

The Company has federal net operating loss carryforwards of $6,589,000, which has an indefinite time to utilize and will not expire. In addition, the Company has state net operating loss carryforwards of $107,232,000 that expire beginning in fiscal year ending April 30, 2022.

The following table reconciles taxes computed at the U.S. federal statutory income tax rate from continuing operations to the Company’s actual tax provision (in thousands):


	Year Ended April 30,
	2021		2020
Computed tax provision (benefit) at statutory rate	$	2,108	$	(1,603)
Increase (reduction) in tax resulting from:
Deferred tax rate changes		139		163
Change in valuation allowances		(304)		262
State income taxes, net of federal income tax effect		366		(481)
Permanent items		(63)		1
Other		397		(64)
Actual tax provision (benefit)	$	2,643	$	(1,722)

The Company is subject to U.S. federal income taxes and various state and local income taxes. Tax regulations within each jurisdiction are subject to interpretation and require significant judgment to apply. The Company is currently under examination by the Internal Revenue Service for their income tax return filed for the tax year ended April 30, 2019. The examination is in the discovery stages and there are no proposed adjustments at this time. Other than the U.S. federal tax return, in nearly all jurisdictions, the tax years through the fiscal year ended April 30, 2018 are no longer subject to examination due to the expiration of the applicable statutes of limitations.

ASC 740 clarifies the accounting for uncertain tax positions, prescribing a minimum recognition threshold a tax position is required to meet before being recognized, and providing guidance on the derecognition, measurement, classification and disclosure relating to income taxes. The Company has no unrecognized tax benefits for 2021 and 2020.

The Company has elected to include interest and penalties in its income tax expense. The Company had no accrued interest or penalties as of April 30, 2021 and 2020.