diff --git a/java/compiler/compiler-tests.iml b/java/compiler/compiler-tests.iml
index 00f4449e83c6..943b1830d3dd 100644
--- a/java/compiler/compiler-tests.iml
+++ b/java/compiler/compiler-tests.iml
@@ -19,6 +19,7 @@
     <orderEntry type="library" scope="TEST" name="Groovy" level="project" />
     <orderEntry type="module" module-name="spellchecker" scope="RUNTIME" />
     <orderEntry type="module" module-name="jps-model-impl" scope="TEST" />
+    <orderEntry type="module" module-name="testExtensions" scope="TEST" />
   </component>
   <component name="copyright">
     <Base>
diff --git a/java/compiler/impl/src/com/intellij/compiler/CompilerConfigurationImpl.java b/java/compiler/impl/src/com/intellij/compiler/CompilerConfigurationImpl.java
index 2b114b96e13f..09feb937e561 100644
--- a/java/compiler/impl/src/com/intellij/compiler/CompilerConfigurationImpl.java
+++ b/java/compiler/impl/src/com/intellij/compiler/CompilerConfigurationImpl.java
@@ -1,4 +1,6 @@
-// Copyright 2000-2017 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+/*
+ * Copyright 2000-2017 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+ */
 package com.intellij.compiler;
 
 import com.intellij.CommonBundle;
@@ -824,7 +826,7 @@ public class CompilerConfigurationImpl extends CompilerConfiguration implements
     Element bytecodeTargetElement = parentNode.getChild(JpsJavaCompilerConfigurationSerializer.BYTECODE_TARGET_LEVEL);
     if (bytecodeTargetElement != null) {
       myBytecodeTargetLevel = bytecodeTargetElement.getAttributeValue(JpsJavaCompilerConfigurationSerializer.TARGET_ATTRIBUTE);
-      readByteTargetLevel(parentNode);
+      readByteTargetLevel(parentNode, myModuleBytecodeTarget);
     }
 
     Map<String, String> externalState = myProject.getComponent(ExternalCompilerConfigurationStorage.class).getLoadedState();
diff --git a/java/compiler/impl/src/com/intellij/compiler/ExternalCompilerConfigurationStorage.kt b/java/compiler/impl/src/com/intellij/compiler/ExternalCompilerConfigurationStorage.kt
index c7e85cefed90..d18a25640d26 100644
--- a/java/compiler/impl/src/com/intellij/compiler/ExternalCompilerConfigurationStorage.kt
+++ b/java/compiler/impl/src/com/intellij/compiler/ExternalCompilerConfigurationStorage.kt
@@ -1,4 +1,6 @@
-// Copyright 2000-2017 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+/*
+ * Copyright 2000-2017 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+ */
 package com.intellij.compiler
 
 import com.intellij.openapi.components.PersistentStateComponent
@@ -36,7 +38,9 @@ internal class ExternalCompilerConfigurationStorage(private val project: Project
   }
 
   override fun loadState(state: Element) {
-    loadedState = readByteTargetLevel(state)
+    val result = THashMap<String, String>()
+    readByteTargetLevel(state, result)
+    loadedState = result
   }
 
   override fun getExternalSource(): ProjectModelExternalSource? {
@@ -73,13 +77,11 @@ internal fun writeBytecodeTarget(moduleNames: List<String>, map: Map<String, Str
   }
 }
 
-internal fun readByteTargetLevel(parentNode: Element): Map<String, String> {
-  val result = THashMap<String, String>()
-  val bytecodeTargetElement = parentNode.getChild(JpsJavaCompilerConfigurationSerializer.BYTECODE_TARGET_LEVEL) ?: return result
+internal fun readByteTargetLevel(parentNode: Element, result: MutableMap<String, String>) {
+  val bytecodeTargetElement = parentNode.getChild(JpsJavaCompilerConfigurationSerializer.BYTECODE_TARGET_LEVEL) ?: return
   for (element in bytecodeTargetElement.getChildren(JpsJavaCompilerConfigurationSerializer.MODULE)) {
     val name = element.getAttributeValue(JpsJavaCompilerConfigurationSerializer.NAME) ?: continue
     val target = element.getAttributeValue(JpsJavaCompilerConfigurationSerializer.TARGET_ATTRIBUTE) ?: continue
     result.put(name, target)
   }
-  return result
 }
\ No newline at end of file
diff --git a/java/compiler/tests/com/intellij/compiler/CompilerConfigurationTest.java b/java/compiler/tests/com/intellij/compiler/CompilerConfigurationTest.java
index 4e8a6472c8b8..62576ac24e28 100644
--- a/java/compiler/tests/com/intellij/compiler/CompilerConfigurationTest.java
+++ b/java/compiler/tests/com/intellij/compiler/CompilerConfigurationTest.java
@@ -6,12 +6,17 @@ package com.intellij.compiler;
 import com.intellij.module.ModuleGroupTestsKt;
 import com.intellij.openapi.module.Module;
 import com.intellij.testFramework.PlatformTestCase;
+import org.jdom.JDOMException;
 import org.jetbrains.jps.model.java.compiler.ProcessorConfigProfile;
 import org.jetbrains.jps.model.java.impl.compiler.ProcessorConfigProfileImpl;
 
+import java.io.IOException;
 import java.util.Arrays;
 import java.util.List;
 
+import static com.intellij.testFramework.assertions.Assertions.assertThat;
+import static com.intellij.util.JdomKt.loadElement;
+
 public class CompilerConfigurationTest extends PlatformTestCase {
   public void testUpdateTargetLevelOnModuleRename() {
     Module module = createModule("foo");
@@ -22,6 +27,25 @@ public class CompilerConfigurationTest extends PlatformTestCase {
     assertEquals("1.6", getConfiguration().getBytecodeTargetLevel(module));
   }
 
+  public void testLoadState() throws IOException, JDOMException {
+    Module module = createModule("foo");
+    CompilerConfigurationImpl configuration = getConfiguration();
+    configuration.setBytecodeTargetLevel(module, "1.6");
+    assertThat(configuration.getState()).isEqualTo("<state>\n" +
+                                                   "  <bytecodeTargetLevel>\n" +
+                                                   "    <module name=\"foo\" target=\"1.6\" />\n" +
+                                                   "  </bytecodeTargetLevel>\n" +
+                                                   "</state>");
+
+    configuration.loadState(loadElement("<state>\n" +
+                                        "  <bytecodeTargetLevel>\n" +
+                                        "    <module name=\"foo\" target=\"1.7\" />\n" +
+                                        "  </bytecodeTargetLevel>\n" +
+                                        "</state>"));
+
+    assertThat(configuration.getBytecodeTargetLevel(module)).isEqualTo("1.7");
+  }
+
   public void testUpdateOptionsOnModuleRename() {
     Module module = createModule("foo");
     List<String> options = Arrays.asList("-nowarn");