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Income Taxes

12 Months Ended

Mar. 31, 2014

8. Income Taxes

The provision for income taxes consists of the following for the years ended March 31:


	2014		2013		2012
Current:
Federal	$	8,709,338	$	10,187,010	$	11,799,843
State		1,393,675		1,661,860		1,881,400

Total current		10,103,013		11,848,870		13,681,243

Deferred:
Federal		1,474,425		598,674		211,544
State		235,940		97,665		33,729

Total deferred		1,710,365		696,339		245,273

Income tax expense	$	11,813,378	$	12,545,209	$	13,926,516

The net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes are reflected in deferred income taxes. Significant components of the Company’s deferred tax assets consist of the following as of March 31:


	2014			2013
Allowance for credit losses not currently deductible for tax purposes	$	6,106,725		$	7,448,933
Share-based compensation		443,623			522,573
Interest rate swap agreements		(70,283	)		193,258
Other items		236,531			262,197

Deferred income taxes	$	6,716,596		$	8,426,961

The provision for income taxes reflects an effective U.S tax rate, which differs from the corporate tax rate for the following reasons:


	2014		2013		2012
Provision for income taxes at Federal statutory rate	$	9,980,855	$	11,370,154	$	12,651,896
Increase resulting from:
State income taxes, net of Federal benefit		1,059,249		1,143,692		1,244,834
Non-deductible transaction costs		733,689		—		—
Other		39,585		31,363		29,786

Income tax expense	$	11,813,378	$	12,545,209	$	13,926,516

The Company’s effective tax rate increased to 41.43% in fiscal 2014 from 38.61% in fiscal 2013 and 38.54% in fiscal 2012. The Company had approximately $2,096,000 of non-deductible expenses associated with the potential sale of the Company. If the sale of the Company is not consummated, the approximately $2,096,000 may become deductible in a future period creating a favorable effective tax rate.

- 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.

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