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Income Taxes

12 Months Ended

Mar. 31, 2015

8. Income Taxes

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


	2015		2014		2013
Current:
Federal	$	7,688,428	$	8,709,338	$	10,187,010
State		1,196,034		1,393,675		1,661,860

Total current		8,884,462		10,103,013		11,848,870

Deferred:
Federal		308,090		1,474,425		598,674
State		47,927		235,940		97,665

Total deferred		356,017		1,710,365		696,339

Income tax expense	$	9,240,479	$	11,813,378	$	12,545,209

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:


	2015		2014
Allowance for credit losses not currently deductible for tax purposes	$	5,552,437	$	6,106,725
Share-based compensation		514,259		443,623
Interest rate swap agreements		69,201		(70,283	)
Other items		224,682		236,531

Deferred income taxes	$	6,360,579	$	6,716,596

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


	2015			2014		2013
Provision for income taxes at Federal statutory rate	$	9,133,730		$	9,980,855	$	11,370,154
Increase (decrease) resulting from:
State income taxes, net of Federal benefit		808,574			1,059,249		1,143,692
Transaction costs		(733,689	)		733,689		—
Other		31,864			39,585		31,363

Income tax expense	$	9,240,479		$	11,813,378	$	12,545,209

The Company’s effective tax rate decreased to 35.41% in fiscal 2015 from 41.43% in fiscal 2014 and 38.61% in fiscal 2013. The Company had approximately $2,096,000 of previously non-deductible expenses associated with the potential sale of the Company in 2014 (see Note 12). Since the sale of the Company was not consummated, the $2,096,000 became deductible in 2015 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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