Global Clean Energy Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 11 - Income Taxes

Note 11 - Income Taxes

12 Months Ended

Dec. 31, 2014

Note 11 - Income Taxes

Income taxes are provided for temporary differences between financial and tax bases of assets and liabilities. The following is a reconciliation of the amount of benefit that would result from applying the federal statutory rate to pretax loss with the benefit from income taxes for the years ended December 31, 2014 and 2013:

Rate Reconciliation
	2014	2013
Federal income tax (benefit) at statutory rate (34%)	$(814,000)	$(2,552,000)
State income tax (benefit) , net of federal benefit	(7,000)	(100,000)
Foreign income tax benefit	-	-
Losses allocated to preferred members of GCE Mexico	743,000	1,971,000
Losses allocated GEHD	34,000	15,000
Share-based compensation	66,000	38,000
Expiration of operating loss and research credit carryforwards	-	-
Other differences	4,000	5,000
Change in valuation allowance	(26,000)	623,000
Income tax benefit	-	-

The components of deferred tax assets and liabilities are as follows at December 31, 2014 and 2013, using a combined deferred income tax rate of 40%:

Components of Net Deferred Taxes
	2014	2013
Net operating loss carryforward	$7,188,000	$7,225,000
Share-based compensation	752,000	781,000
Accrued compensation and other liabilities	701,000	647,000
Impairment of long lived assets	42,000	58,000
Other	-	(2,000)
Valuation allowance	(8,683,000)	(8,709,000)
Net deferred tax asset	-	-

The Company has available net operating losses in the U.S. of approximately $28,000,000 which can be utilized to offset future earnings of the Company. The utilization of the net operating losses are dependent upon the tax laws in effect at the time such losses can be utilized. The loss carryforwards expire between the years 2014 and 2034. Should the Company experience a significant change of ownership, the utilization of net operating losses could be reduced.

The Company and its subsidiaries file tax returns in the U.S. Federal jurisdiction and, in the state of California. The Company is no longer subject to U.S. federal tax examinations for tax years before and including December 31, 2010. The Company is no longer subject to examination by state tax authorities for tax years before and including December 31, 2009. During the years ended December 31, 2014 and 2013, the Company did not recognize interest and penalties.

- 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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