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 losses (and related 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 refundable without regard to future taxable income. Accordingly, in fiscal 2018, 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. In 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 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 28,		September 29,			September 30,
	2019		2018			2017
Current
Federal	$	67	$	7		$	13
State and local		790		473			446
		857		480			459
Deferred		—		(1,086	)		—
	$	857	$	(606	)	$	459

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 28,			September 29,			September 30,
	2019			2018			2017
Income tax provision at federal statutory tax rate	$	14,593		$	15,945		$	13,459
Impact of Partnership income not subject to federal income taxes		(14,925	)		(15,939	)		(13,892	)
Permanent differences		162			65			3
Change in valuation allowance		115			(21,307	)		406
State income taxes		707			656			864
Remeasurement of net deferred tax assets (1)		—			19,941			—
Other		205			33			(381	)
Provision for income taxes - current and deferred	$	857		$	(606	)	$	459

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

	Year Ended
	September 28,			September 29,
	2019			2018 (1)
Deferred tax assets:
Net operating loss carryforwards	$	38,914		$	38,672
Allowance for doubtful accounts		170			225
Inventory		231			291
Deferred revenue		615			661
AMT credit carryforward		513			1,086
Other accruals		1,416			1,661
Total deferred tax assets		41,859			42,596
Deferred tax liabilities:
Intangible assets		1,205			1,131
Property, plant and equipment		2,145			2,498
Total deferred tax liabilities		3,350			3,629
Net deferred tax assets		38,509			38,967
Valuation allowance		(37,996	)		(37,881	)
Net deferred tax assets	$	513		$	1,086