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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table sets forth our provision for income taxes for the periods indicated:
 Years Ended Dec. 31,
 202420232022
 
(Millions of dollars)
Current tax expense (benefit)
Federal$89 $(3)$52 
State20 12 12 
Total current tax expense109 9 64 
Deferred tax expense
Federal792 739 423 
State97 90 41 
Total deferred tax expense889 829 464 
Total provision for income taxes$998 $838 $528 

The following table is a reconciliation of our income tax provision for the periods indicated:
Years Ended Dec. 31,
 202420232022
 
(Millions of dollars)
Income before income taxes
$4,110 $3,497 $2,250 
Federal statutory income tax rate21.0 %21.0 %21.0 %
Provision for federal income taxes863 734 472 
State income taxes, net of federal benefit93 100 54 
Change in valuation allowance
12 2 (1)
Deferred tax rate change
20 — — 
Excess tax benefits from share-based compensation(13)1 (1)
Other, net23 1 4 
Income tax provision$998 $838 $528 

The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of the dates indicated:
Dec. 31,
2024		Dec. 31,
2023
Deferred tax assets
(Millions of dollars)
Employee benefits and other accrued liabilities$99 $88 
Federal net operating loss2,818 2,534 
State net operating loss and benefits515 492 
Derivative instruments15 — 
Interest expense limitation407 210 
Other39 20 
Total deferred tax assets3,893 3,344 
Valuation allowance for state net operating loss and tax credits
Carryforward expected to expire prior to utilization(252)(240)
Net deferred tax assets3,641 3,104 
Deferred tax liabilities
Excess of tax over book depreciation58 104 
Derivative instruments— 7 
Investment in partnerships (a)9,034 5,587 
Total deferred tax liabilities9,092 5,698 
Net deferred tax liabilities$5,451 $2,594 
(a) Due primarily to excess of tax over book depreciation.
On Oct. 15, 2024, we completed the EnLink Controlling Interest Acquisition resulting in a difference between the carrying value of the underlying assets acquired and the carryover tax basis in the assets, which resulted in a deferred tax liability of $2.0 billion recorded as part of the purchase price allocation.

Subsequent event - On Jan. 31, 2025, we completed the EnLink Acquisition by acquiring all of the remaining and outstanding publicly held EnLink Units. EnLink is now a wholly owned subsidiary and included in our consolidated income tax returns.

As of Dec. 31, 2024, we have federal net operating loss carryforwards of $13.4 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, $11.0 billion of which, have an indefinite carryforward period and $2.3 billion of which will expire between 2026 and 2044. We have deferred tax assets related to federal and state net operating loss and credit carryforwards of $3.3 billion and $3.0 billion in 2024 and 2023, 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 increased by $12 million and $165 million in 2024 and 2023, respectively, and reduced by $1 million in 2022 through net income.