INCOME TAXES

3 Months Ended

Dec. 30, 2011

INCOME TAXES

NOTE 10. INCOME TAXES

Provisions for income taxes for the three-month periods ended December 30, 2011 and December 31, 2010 are as follows:

	Three months ended
	December 30,		December 31,
Income Tax Provision	2011		2010
	(thousands)
Provision for income taxes	$	555	$	657

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.