The provision for income taxes (income tax benefits) consists of the following for the years ended March 31:

	(In thousands)
	2020			2019
Current:
Federal	$	(4,440	)	$	(39	)
State		6			(66	)
Total current		(4,434	)		(105	)
Deferred:
Federal		3,008			(844	)
State		207			9
Total deferred		3,215			(835	)
Income tax benefit	$	(1,219	)	$	(940	)

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:

	(In thousands)
Deferred Tax Assets	2020		2019
Allowance for credit losses not currently deductible for tax purposes	$	2,948	$	4,431
Share-based compensation		320		276
Federal and state net operating loss carryforwards		458		2,293
Right of use liability		462		-
Other items		249		201
Total deferred tax assets		4,437		7,201

Deferred tax liabilities
Right of use asset		457		-
Other items		71		77
Total deferred tax liabilities		528		77
Deferred income taxes	$	3,909	$	7,124

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

	(In thousands)
	2020			2019
Provision (benefit) for income taxes at Federal statutory rate	$	479		$	(845	)
Increase (decrease) resulting from:
Federal Fiscal Year 2020 NOL rate differential		(414	)		-
Federal Fiscal Year 2019 NOL rate differential		(1,362	)		-
State income taxes, net of Federal benefit		91			(206	)
Tax Reform – Rate Change		-			160
Other		(13	)		(49	)
Income tax expense (benefit)	$	(1,219	)	$	(940	)

The Company’s effective tax rate decreased to (54.3)% in fiscal 2020 from 20.5% in fiscal 2019, resulting from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

In response to the global impacts of COVID-19 on U.S. companies and citizens, the government enacted the CARES Act on March 27, 2020. The CARES Act included several tax relief options for companies, which resulted in the following provisions available to the Company.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective positive evidence evaluated was the cumulative pre-tax income over the three-year period ended March 31, 2020, cumulative pre-tax income for the next three years, and substantial federal NOL rate differentials, previously noted. As of March 31, 2020, a valuation allowance was not required. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced.

The Company considers the earnings of the Company’s U.S. subsidiaries to be indefinitely invested outside Canada on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not recorded a deferred tax liability related to the Canadian income taxes and U.S. withholding taxes on approximately $144.2 million of undistributed earnings of the U.S. subsidiaries indefinitely invested outside Canada. If the Company decided to repatriate the U.S. earnings, it would need to adjust its income tax provision in the period the Company determined that the earnings will no longer be indefinitely invested outside of Canada.