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Income Taxes
 12 Months Ended
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:
NEEFPL
Years Ended December 31,Years Ended December 31,
202220212020202220212020
(millions)
Federal:
Current
$11 $(26)$105 $3 $85 $16 
Deferred
497 311 (148)684 545 474 
Total federal508 285 (43)687 630 490 
State:      
Current41 (62)18 2 1 32 
Deferred
37 125 69 258 207 156 
Total state78 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:
 NEEFPL
 Years Ended December 31,Years Ended December 31,
 202220212020202220212020
Statutory federal income tax rate21.0 %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 rate15.3 %11.0 %1.8 %20.4 %20.7 %19.0 %
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(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:
NEEFPL
December 31,December 31,
2022202120222021
(millions)
Deferred tax liabilities:
Property-related$10,144 $10,018 $8,177 $7,831 
Pension552 564 439 425 
Investments in partnerships and joint ventures3,144 2,783 3 3 
Other2,666 2,092 1,914 1,232 
Total deferred tax liabilities16,506 15,457 10,533 9,491 
Deferred tax assets and valuation allowance:
Decommissioning reserves306 296 306 296 
Net operating loss carryforwards346 330 19 2 
Tax credit carryforwards4,905 4,646 123 182 
ARO and accrued asset removal costs199 199 107 126 
Regulatory liabilities1,332 1,421 1,308 1,397 
Other822 733 295 351 
Valuation allowance(a)
(257)(282)— — 
Net deferred tax assets7,653 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:
NEEFPL
December 31,December 31,
2022202120222021
(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:
AmountExpiration
Dates
(millions)
Net operating loss carryforwards:
Federal$11 
(a)
2033 – 2037
State315 2022 – 2042
Foreign20 
(b)
2026 – 2042
Net operating loss carryforwards$346 
Tax credit carryforwards: 
Federal$4,555 2028 – 2042
State345 
(c)
2023 – 2039
Foreign5 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.