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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Components of income taxes | The components of income taxes are as follows:
| NEE |  | FPL
| Years Ended December 31, |  | Years Ended December 31,
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
| (millions)
Federal: |  |  |  |  |  |  |  |  |  |  |
Current | $ | 105 |  |  | $ | 167 |  |  | $ | 30 |  |  | $ | 53 |  |  | $ | 348 |  |  | $ | 251 |
Deferred | (148) |  |  | 115 |  |  | 1,153 |  |  | 388 |  |  | (29) |  |  | 134 |
Total federal | (43) |  |  | 282 |  |  | 1,183 |  |  | 441 |  |  | 319 |  |  | 385 |
State: |  |  |  |  |  |  |  |  |  |  |
Current | 18 |  |  | 23 |  |  | 63 |  |  | 44 |  |  | 49 |  |  | 91 |
Deferred | 69 |  |  | 143 |  |  | 330 |  |  | 125 |  |  | 73 |  |  | 63 |
Total state | 87 |  |  | 166 |  |  | 393 |  |  | 169 |  |  | 122 |  |  | 154 |
Total income taxes | $ | 44 |  |  | $ | 448 |  |  | $ | 1,576 |  |  | $ | 610 |  |  | $ | 441 |  |  | $ | 539 |
Reconciliation between the effective income tax rates and the applicable statutory rates | A reconciliation between the effective income tax rates and the applicable statutory rate is as follows:
| NEE |  | FPL
| Years Ended December 31, |  | Years Ended December 31,
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |
State income taxes - net of federal income tax benefit(a) | 2.8 |  |  | 3.4 |  |  | 4.2 |  |  | 4.1 |  |  | 3.5 |  |  | 4.5 |
Taxes attributable to noncontrolling interests | 4.8 |  |  | 2.1 |  |  | 2.5 |  |  | — |  |  | — |  |  | — |
PTCs and ITCs - NEER | (11.8) |  |  | (7.2) |  |  | (3.0) |  |  | — |  |  | — |  |  | — |
Amortization of deferred regulatory credit(b) | (7.2) |  |  | (6.2) |  |  | (1.8) |  |  | (5.0) |  |  | (8.1) |  |  | (5.0) |
Foreign operations(c) | (2.4) |  |  | — |  |  | (0.8) |  |  | — |  |  | — |  |  | — |
Other - net | (5.4) |  |  | (1.4) |  |  | (0.7) |  |  | (1.4) |  |  | (0.5) |  |  | (0.6) |
Effective income tax rate | 1.8 | % |  | 11.7 | % |  | 21.4 | % |  | 18.7 | % |  | 15.9 | % |  | 19.9 | %
_________________________ (a)2019 reflects a valuation allowance of approximately $48 million related to deferred state tax credits. (b)2019 reflects an adjustment of approximately $83 million recorded by FPL to reduce income tax expense for the cumulative amortization of excess deferred income taxes from January 1, 2018 as a result of the FPSC's order in connection with its review of impacts associated with tax reform. One of the provisions of the order requires FPL to amortize approximately $870 million of its excess deferred income taxes over a period not to exceed ten years. (c)The 2020 gain on sale of the Spain solar projects was not taxable for federal and state income tax purposes (see Note 1 - Disposal of Businesses/Assets).
Schedule of deferred income tax liabilities and assets | The income tax effects of temporary differences giving rise to consolidated deferred income tax liabilities and assets are as follows:
| NEE |  | FPL
| December 31, |  | December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
| (millions)
Deferred tax liabilities: |  |  |  |  |  |  |
Property-related | $ | 10,065 |  |  | $ | 10,133 |  |  | $ | 6,791 |  |  | $ | 6,394 |
Pension | 437 |  |  | 417 |  |  | 394 |  |  | 374 |
Investments in partnerships and joint ventures | 2,238 |  |  | 2,019 |  |  | 3 |  |  | — |
Other | 1,730 |  |  | 1,618 |  |  | 672 |  |  | 685 |
Total deferred tax liabilities | 14,470 |  |  | 14,187 |  |  | 7,860 |  |  | 7,453 |
Deferred tax assets and valuation allowance: |  |  |  |  |  |  |
Decommissioning reserves | 290 |  |  | 317 |  |  | 290 |  |  | 286 |
Net operating loss carryforwards | 299 |  |  | 380 |  |  | 2 |  |  | 2 |
Tax credit carryforwards | 3,859 |  |  | 3,406 |  |  | — |  |  | — |
ARO and accrued asset removal costs | 347 |  |  | 368 |  |  | 226 |  |  | 273 |
Regulatory liabilities | 1,380 |  |  | 1,335 |  |  | 1,259 |  |  | 1,219 |
Other | 755 |  |  | 515 |  |  | 293 |  |  | 258 |
Valuation allowance(a) | (289) |  |  | (285) |  |  | — |  |  | — |
Net deferred tax assets | 6,641 |  |  | 6,036 |  |  | 2,070 |  |  | 2,038 |
Net deferred income taxes | $ | 7,829 |  |  | $ | 8,151 |  |  | $ | 5,790 |  |  | $ | 5,415 |
______________________ (a)Reflects valuation allowances related to deferred state tax credits and state operating loss carryforwards, and, in 2019, also reflects valuation allowances related to the solar projects in Spain that completely offset the related deferred taxes. Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:
| NEE |  | FPL
| December 31, |  | December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
|  |  | (millions) |  |
Noncurrent other assets | $ | 191 |  |  | $ | 210 |  |  | $ | — |  |  | $ | — |
Deferred income taxes - noncurrent liabilities | (8,020) |  |  | (8,361) |  |  | (5,790) |  |  | (5,415) |
Net deferred income taxes | $ | (7,829) |  |  | $ | (8,151) |  |  | $ | (5,790) |  |  | $ | (5,415) |
Components of deferred tax assets relating to net operating loss carryforwards | The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2020 are as follows:
| Amount |  | Expiration Dates
| (millions) |  |
Net operating loss carryforwards: |  |  |
Federal | $ | 2 |  |  | 2033-2037
State | 280 |  |  | 2021-2040
Foreign | 17 |  |  | 2021-2040
Net operating loss carryforwards | $ | 299 |  |  |
Tax credit carryforwards: |  |  |
Federal | $ | 3,508 |  |  | 2029-2040
State | 348 |  | (a) | 2021-2045
Foreign | 3 |  |  | 2034-2040
Tax credit carryforwards | $ | 3,859 |  |  |
______________________ (a)Includes $191 million of ITC carryforwards with an indefinite expiration period.

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