INCOME TAXES

6 Months Ended

Mar. 30, 2012

INCOME TAXES

NOTE 10. INCOME TAXES

Provisions for income taxes for the three and six months ended March 30, 2012 and April 1, 2011 are as follows:

	Three months ended				Six months ended
	March 30,		April 1,		March 30,		April 1,
Income Tax Provision	2012		2011		2012		2011
	(thousands)
Provision for income taxes	$	1,529	$	981	$	2,084	$	1,637

IEC has federal and state net operating loss carryforwards (“NOLs”) for income tax purposes of approximately $24.5 million and $37.7 million, respectively, as of September 30, 2011, expiring mainly in years 2020 through 2025. It is estimated that the federal and state NOLs will produce future tax benefits totaling $8.9 million.

In addition, $1.4 million of New York State investment tax and other credits are available to the Company as carryforwards, expiring in various years through 2026. These credits cannot be utilized until the New York net operating loss carryforward is exhausted. We have recorded a valuation allowance for these credits to the extent that we believe it is more likely than not that the tax benefit will not be realized. If the credits expire unused, the related deferred tax asset and offsetting valuation allowance will be reduced.