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v3.22.4

Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On August 16, 2022, the IRA was signed into law which includes: (i) extensions for wind and solar tax credits on facilities that start construction before the later of 2034 or the end of the calendar year following the year in which greenhouse gas emissions from U.S. electric generation are reduced by 75% from 2022 levels; (ii) a new solar PTC and standalone battery ITC; (iii) the ability to transfer renewable energy tax credits to an unrelated transferee; and (iv) a 15% corporate profits minimum tax based on pre-tax income for years after 2022. This legislation does not require NEE or FPL to revalue their deferred income taxes given that there was no change to the corporate tax rate. Pursuant to FPL’s 2021 rate agreement, FPL refunded customers approximately $36 million in January 2023 and will prospectively adjust base rates after a review by the FPSC for PTCs related to new solar generation facilities recovered in base rates during the term of the 2021 rate agreement (see Note 1 – Rate Regulation). The components of income taxes are as follows:
| NEE |  | FPL
| Years Ended December 31, |  | Years Ended December 31,
| 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
| (millions)
Federal: |  |  |  |  |  |  |  |  |  |  |
Current | $ | 11 |  |  | $ | (26) |  |  | $ | 105 |  |  | $ | 3 |  |  | $ | 85 |  |  | $ | 16 |
Deferred | 497 |  |  | 311 |  |  | (148) |  |  | 684 |  |  | 545 |  |  | 474 |
Total federal | 508 |  |  | 285 |  |  | (43) |  |  | 687 |  |  | 630 |  |  | 490 |
State: |  |  |  |  |  |  |  |  |  |  |
Current | 41 |  |  | (62) |  |  | 18 |  |  | 2 |  |  | 1 |  |  | 32 |
Deferred | 37 |  |  | 125 |  |  | 69 |  |  | 258 |  |  | 207 |  |  | 156 |
Total state | 78 |  |  | 63 |  |  | 87 |  |  | 260 |  |  | 208 |  |  | 188 |
Total income taxes | $ | 586 |  |  | $ | 348 |  |  | $ | 44 |  |  | $ | 947 |  |  | $ | 838 |  |  | $ | 678 |
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,
| 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
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 | 1.6 |  |  | 1.6 |  |  | 2.8 |  |  | 4.4 |  |  | 4.1 |  |  | 4.2 |
Taxes attributable to noncontrolling interests | 4.9 |  |  | 5.0 |  |  | 4.8 |  |  | — |  |  | — |  |  | — |
PTCs and ITCs | (6.8) |  |  | (11.3) |  |  | (12.7) |  |  | (1.1) |  |  | (0.7) |  |  | (0.6) |
Amortization of deferred regulatory credit | (4.8) |  |  | (4.4) |  |  | (7.2) |  |  | (4.0) |  |  | (3.5) |  |  | (4.9) |
Foreign operations(a) | 0.1 |  |  | 0.2 |  |  | (2.4) |  |  | — |  |  | — |  |  | — |
Other – net | (0.7) |  |  | (1.1) |  |  | (4.5) |  |  | 0.1 |  |  | (0.2) |  |  | (0.7) |
Effective income tax rate | 15.3 | % |  | 11.0 | % |  | 1.8 | % |  | 20.4 | % |  | 20.7 | % |  | 19.0 | %
_________________________ (a)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 and Sale of Noncontrolling Ownership Interests). 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,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (millions)
Deferred tax liabilities: |  |  |  |  |  |  |
Property-related | $ | 10,144 |  |  | $ | 10,018 |  |  | $ | 8,177 |  |  | $ | 7,831 |
Pension | 552 |  |  | 564 |  |  | 439 |  |  | 425 |
Investments in partnerships and joint ventures | 3,144 |  |  | 2,783 |  |  | 3 |  |  | 3 |
Other | 2,666 |  |  | 2,092 |  |  | 1,914 |  |  | 1,232 |
Total deferred tax liabilities | 16,506 |  |  | 15,457 |  |  | 10,533 |  |  | 9,491 |
Deferred tax assets and valuation allowance: |  |  |  |  |  |  |
Decommissioning reserves | 306 |  |  | 296 |  |  | 306 |  |  | 296 |
Net operating loss carryforwards | 346 |  |  | 330 |  |  | 19 |  |  | 2 |
Tax credit carryforwards | 4,905 |  |  | 4,646 |  |  | 123 |  |  | 182 |
ARO and accrued asset removal costs | 199 |  |  | 199 |  |  | 107 |  |  | 126 |
Regulatory liabilities | 1,332 |  |  | 1,421 |  |  | 1,308 |  |  | 1,397 |
Other | 822 |  |  | 733 |  |  | 295 |  |  | 351 |
Valuation allowance(a) | (257) |  |  | (282) |  |  | — |  |  | — |
Net deferred tax assets | 7,653 |  |  | 7,343 |  |  | 2,158 |  |  | 2,354 |
Net deferred income taxes | $ | 8,853 |  |  | $ | 8,114 |  |  | $ | 8,375 |  |  | $ | 7,137 |
______________________ (a)Reflects valuation allowances related to deferred state tax credits and state operating loss carryforwards. Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:
| NEE |  | FPL
| December 31, |  | December 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
|  |  | (millions) |  |
Noncurrent other assets | $ | 219 |  |  | $ | 196 |  |  | $ | 1 |  |  | $ | — |
Deferred income taxes – noncurrent liabilities | (9,072) |  |  | (8,310) |  |  | (8,376) |  |  | (7,137) |
Net deferred income taxes | $ | (8,853) |  |  | $ | (8,114) |  |  | $ | (8,375) |  |  | $ | (7,137) |
The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2022 are as follows:
| Amount |  | Expiration Dates
| (millions) |  |
Net operating loss carryforwards: |  |  |
Federal | $ | 11 |  | (a) | 2033 – 2037
State | 315 |  |  | 2022 – 2042
Foreign | 20 |  | (b) | 2026 – 2042
Net operating loss carryforwards | $ | 346 |  |  |
Tax credit carryforwards: |  |  |
Federal | $ | 4,555 |  |  | 2028 – 2042
State | 345 |  | (c) | 2023 – 2039
Foreign | 5 |  |  | 2034 – 2042
Tax credit carryforwards | $ | 4,905 |  |  |
______________________ (a)Includes $9 million of net operating loss carryforwards with an indefinite expiration period. (b)Includes $1 million of net operating loss carryforwards with an indefinite expiration period. (c)Includes $191 million of ITC carryforwards with an indefinite expiration period.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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