INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes during the fiscal years ended September 30, 2020 and 2019 follows:

	Years Ended
Income Tax Provision	September 30, 2020		September 30, 2019
(in thousands)
Current tax:
State	$	146	$	116
Federal	(517)		(517)
Deferred tax:
State	(49)		17
Federal	2,340		1,471
Valuation allowance	23		89
Provision for income taxes	$	1,943	$	1,176

Schedule of Effective Income Tax Rate Reconciliation

Differences between the federal statutory rate and IEC’s effective tax rates for fiscal 2020 and fiscal 2019 are explained by the following reconciliation.

	Years Ended
Taxes as Percent of Pretax Income	September 30, 2020		September 30, 2019
Federal statutory rate	21.0	%	21.0	%
Increase in valuation allowance	0.3		1.5
Deferred tax adjustment	—		0.5
State income taxes, net of federal benefit	2.8		1.8
Stock-based compensation	(0.5)		0.3
Research and development credit	(1.4)		(5.4)
Non-deductible expenses	0.1		0.2
Income tax provision as percent of pretax income	22.3	%	19.9	%

Schedule of Deferred Tax Assets by Category

The following table displays deferred tax assets by category:

	As of
Deferred Tax Assets/(Liabilities)	September 30, 2020		September 30, 2019
(in thousands)
Deferred tax assets/(liabilities):
Federal and state net operating loss carryforward	$	3,194	$	4,945
Alternative minimum tax credit carryforward	—		517
Depreciation and fixed assets	(213)		268
New York State investment tax and other credits	1,419		1,396
Inventories	876		476
Deferred gain on sale-leaseback	466		452
Research and development credit	440		319
Section 481(a) adjustment	(64)		(96)
Other	141		273
Total deferred tax asset before allowance	6,259		8,550
Valuation allowance	(1,419)		(1,396)
Deferred tax assets, net	$	4,840	$	7,154