For federal income tax purposes, as well as for state income tax purposes in the majority of the states in which the Partnership operates, the earnings attributable to the Partnership and the Operating Partnership are not subject to income tax at the partnership level. With the exception of those states that impose an entity-level income tax on partnerships, the taxable income or loss attributable to the Partnership and to the Operating Partnership, which may vary substantially from the income (loss) before income taxes reported by the Partnership in the consolidated statement of operations, are includable in the federal and state income tax returns of the Common Unitholders. The aggregate difference in the basis of the Partnership’s net assets for financial and tax reporting purposes cannot be readily determined as the Partnership does not have access to each Common Unitholder’s basis in the Partnership.

As described in Note 1, the earnings of the Corporate Entities are subject to corporate level federal and state income tax. However, based upon past performance, the Corporate Entities are currently reporting an income tax provision composed primarily of minimum state income taxes. A full valuation allowance has been provided against the deferred tax assets (with the exception of the AMT credit carryforward; see below) based upon an analysis of all available evidence, both negative and positive at the balance sheet date, which, taken as a whole, indicates that it is more likely than not that sufficient future taxable income will not be available to utilize the assets. Management’s periodic reviews include, among other things, the nature and amount of the taxable income and expense items, the expected timing of when assets will be used or liabilities will be required to be reported and the reliability of historical profitability of businesses expected to provide future earnings. Furthermore, management considered tax-planning strategies it could use to increase the likelihood that the deferred tax assets will be realized.

On December 22, 2017, the Tax Cuts and Jobs Act (“2017 Act”) was signed into law, which enacted significant changes to U.S. tax and related laws. Some of the provisions of the 2017 Act that could affect the Partnership, the Operating Partnership and their subsidiaries include, but are not limited to, a reduction of the federal corporate income tax rate from 35% to 21%, limitations on the deductibility of net business interest expense, restrictions on the use of net operating loss carryforwards arising in taxable years beginning after December 31, 2017 and full expensing for certain qualified property.

In the case of a corporation, the 2017 Act made Alternative Minimum Tax (“AMT”) credit carryforwards fully refundable without regard to future taxable income. Accordingly, the Partnership concluded that the existing valuation allowance on the AMT credit carryforwards of the Corporate Entities should be released as part of accounting for tax reform. The reversal of the valuation allowance resulted in a $1,086 discrete deferred tax benefit being recorded during the first quarter of fiscal 2018. The Partnership remeasured all other federal net deferred tax assets of the Corporate Entities using the new 21% federal income tax rate and correspondingly adjusted the full valuation allowance. The blended corporate tax federal rate requirements of Internal Revenue Code Section 15 do not apply because the Corporate Entities are calendar-year tax filers.

The Partnership will continue to analyze the 2017 Act to determine the full effects of the new law on its consolidated financial statements.

The income tax provision of all the legal entities included in the Partnership’s consolidated statement of operations, which is composed primarily of state income taxes in the few states that impose taxes on partnerships and minimum state income taxes on the Corporate Entities, consists of the following:

	Year Ended
	September 29,			September 30,		September 24,
	2018			2017		2016
Current
Federal	$	7		$	13	$	7
State and local		473			446		581
		480			459		588
Deferred benefit		(1,086	)		—		—
	$	(606	)	$	459	$	588

The provision for income taxes differs from income taxes computed at the United States federal statutory rate as a result of the following:

	Year Ended
	September 29,			September 30,			September 24,
	2018			2017			2016
Income tax provision at federal statutory tax rate	$	15,945		$	13,459		$	5,260
Impact of Partnership income not subject to federal income taxes		(15,939	)		(13,892	)		(9,844	)
Permanent differences		65			3			182
Change in valuation allowance		(21,307	)		406			4,737
State income taxes		656			864			(211	)
Remeasurement of net deferred tax assets (1)		19,941			—			—
Other		33			(381	)		464
Provision for income taxes - current and deferred	$	(606	)	$	459		$	588

The components of net deferred taxes and the related valuation allowance using currently enacted tax rates are as follows:

	Year Ended
	September 29,			September 30,
	2018			2017
Deferred tax assets (1):
Net operating loss carryforwards	$	38,672		$	59,731
Allowance for doubtful accounts		225			315
Inventory		291			572
Deferred revenue		661			1,041
AMT credit carryforward		1,086			1,086
Other accruals		1,661			1,883
Total deferred tax assets		42,596			64,628
Deferred tax liabilities:
Intangible assets		1,131			1,223
Property, plant and equipment		2,498			4,217
Total deferred tax liabilities		3,629			5,440
Net deferred tax assets		38,967			59,188
Valuation allowance (1)		(37,881	)		(59,188	)
Net deferred tax assets	$	1,086		$	—