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Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Inflation Reduction Act
On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA implemented a new 15% corporate alternative minimum tax based on GAAP net income, with certain adjustments as defined by the IRA, and clean energy-related provisions. The IRA's clean energy provisions include, among other provisions, the extension and modification of existing investment and production tax credits for projects placed in service through 2024 and introduces new technology-neutral clean energy related credits beginning in 2025. In addition, the IRA created a new, zero-emission nuclear power production tax credit and a clean hydrogen production tax credit.
Duke Energy has preliminarily reviewed the provisions of the IRA and has determined there were no material impacts on the results of operations, financial position, or cash flows in the periods presented for the Duke Energy Registrants as a result of the IRA being signed into law. Based on the preliminary review of the IRA provisions, future annual cash flow impacts related to the energy credits could be material to the Duke Energy Registrants. However, the majority of Duke Energy's operations are regulated and the FERC and state utility commissions will determine the regulatory treatment. We anticipate the Subsidiary Registrants will defer and expect to pass along the net financial impact associated with the IRA to customers over time. See Note 3 for further details on the IRA as it relates to Duke Energy Florida. Duke Energy will continue to assess the IRA as new information and anticipated guidance from the U.S. Department of the Treasury becomes available.
EFFECTIVE TAX RATES
The ETRs from continuing operations for each of the Duke Energy Registrants are included in the following table.
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
Duke Energy8.4 %6.6 %5.8 %6.7 %
Duke Energy Carolinas5.2 %2.9 %6.3 %3.6 %
Progress Energy15.8 %12.9 %16.2 %11.5 %
Duke Energy Progress12.9 %6.3 %13.4 %5.9 %
Duke Energy Florida18.4 %19.1 %19.4 %19.1 %
Duke Energy Ohio14.2 %13.4 %(14.6)%15.3 %
Duke Energy Indiana16.8 %15.8 %0.5 %16.3 %
Piedmont21.4 %25.0 %9.1 %8.4 %
The increase in the ETR for Duke Energy for the three months ended September 30, 2022, was primarily due to a decrease in the amortization of excess deferred taxes.
The increase in the ETR for Duke Energy Carolinas for the three and nine months ended September 30, 2022, was primarily due to the amortization of excess deferred taxes in relation to higher pretax income.
The increase in the ETR for Progress Energy for the three and nine months ended September 30, 2022, was primarily due to a decrease in the amortization of excess deferred taxes.
The increase in the ETR for Duke Energy Progress for the three and nine months ended September 30, 2022, was primarily due to a decrease in the amortization of excess deferred taxes.
The decrease in the ETR for Duke Energy Ohio for the nine months ended September 30, 2022, was primarily due to an increase in the amortization of excess deferred taxes related to the MGP Settlement.
The decrease in the ETR for Duke Energy Indiana for the nine months ended September 30, 2022, was primarily due to the coal ash impairment based on the Indiana Supreme Court Opinion recorded and an increase in the amortization of excess deferred taxes.
The decrease in the ETR for Piedmont for the three months ended September 30, 2022, was primarily due to a decrease in research tax credits.