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INCOME TAXES (Notes)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table sets forth our provision for income taxes for the periods indicated:
 Years Ended December 31,
 202220212020
 
(Thousands of dollars)
Current tax expense
Federal$52,012 $2,897 $980 
State11,993 9,544 1,797 
Total current tax expense64,005 12,441 2,777 
Deferred tax expense
Federal422,577 433,469 154,068 
State40,842 38,588 32,662 
Total deferred tax expense463,419 472,057 186,730 
Total provision for income taxes$527,424 $484,498 $189,507 
The following table is a reconciliation of our income tax provision for the periods indicated:
Years Ended December 31,
 202220212020
 
(Thousands of dollars)
Income before income taxes$2,249,645 $1,984,204 $802,316 
Federal statutory income tax rate21.0 %21.0 %21.0 %
Provision for federal income taxes472,425 416,683 168,486 
State income taxes, net of federal benefit54,217 40,092 13,580 
Deferred tax rate change, inclusive of valuation allowance(1,382)6,350 20,879 
Excess tax benefits from share-based compensation(1,324)(1,968)(7,380)
Other, net (a)3,488 23,341 (6,058)
Income tax provision$527,424 $484,498 $189,507 
(a) The year ended December 31, 2021, includes $19.4 million impact from previously recognized gains on certain benefit plan investments.

The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated:
December 31,
2022		December 31,
2021
Deferred tax assets
(Thousands of dollars)
Employee benefits and other accrued liabilities$82,194 $95,952 
Federal net operating loss1,104,617 1,337,050 
State net operating loss and benefits196,369 216,181 
Derivative instruments18,759 118,063 
Other (a)30,048 4,863 
Total deferred tax assets1,431,987 1,772,109 
Valuation allowance for state net operating loss and tax credits
Carryforward expected to expire prior to utilization(74,997)(84,755)
Net deferred tax assets1,356,990 1,687,354 
Deferred tax liabilities
Excess of tax over book depreciation94,815 84,692 
Investment in partnerships (b)3,000,700 2,769,352 
Total deferred tax liabilities3,095,515 2,854,044 
Net deferred tax liabilities$1,738,525 $1,166,690 
(a) The year ended December 31, 2022, includes an indefinite-lived interest limitation carryforward of $24.7 million.
(b) Due primarily to excess of tax over book depreciation.

In August 2022, the U.S. government enacted the Inflation Reduction Act into law. The Inflation Reduction Act includes a new corporate alternative minimum tax (CAMT) of 15% on the adjusted financial statement income (AFSI) of corporations with average AFSI exceeding $1.0 billion over a three-year period. The CAMT is effective for tax years beginning after December 31, 2022. We expect the CAMT to have an impact on our cash taxes beginning with the 2024 tax year. When we become subject to the CAMT and our CAMT liability is greater than our regular U.S. federal income tax liability for any particular year, the CAMT liability would effectively accelerate our future U.S. federal income tax obligations but provide an offsetting credit against our regular U.S. federal income tax liability for future years. As a result, we expect that any impact is limited to timing differences in future tax years.
As of December 31, 2022, we have federal net operating loss carryforwards of $5.3 billion, the majority of which have an indefinite carryforward period. We expect to generate taxable income and utilize these net operating loss carryforwards in future periods. We also have loss and credit carryovers in multiple states, $2.7 billion of which have an indefinite carryforward period and $1.7 billion of which will expire between 2024 and 2039. We have deferred tax assets related to federal and state net operating loss and credit carryforwards of $1.3 billion and $1.6 billion in 2022 and 2021, respectively. We believe that it is more likely than not that the tax benefits of certain state carryforwards will not be utilized; therefore, we recorded a valuation allowance, which was reduced by $1.4 million in 2022, and increased by $6.4 million and $20.9 million in 2021 and 2020, respectively, through net income