NOTE 15. INCOME TAXES

Provision for income taxes during the three and nine month periods follows:

	Three Months Ended				Nine Months Ended
	June 28,		June 29,		June 28,		June 29,
Income Tax Provision	2013		2012		2013		2012
	(thousands)				(thousands)
			(restated)				(restated)

Provision for/(benefit from) income taxes	$	224	$	1,046	$	(518)	$	2,960

IEC has federal and state net operating loss carryforwards (“NOLs”) for income tax purposes of approximately $16.7 million and $25.0 million, respectively, as of September 30, 2012, expiring mainly in years 2020 through 2025. It is estimated that the federal and state NOLs will produce future tax benefits totaling $5.1 million.

In addition, $1.0 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 State 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.