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Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Taxes [Line Items]  
Income Taxes

Note 13. Income Taxes

A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

PSEG

 

June 30,

 

 

June 30,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

726

 

 

$

437

 

 

$

1,343

 

 

$

1,066

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

152

 

 

$

92

 

 

$

282

 

 

$

224

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

34

 

 

 

34

 

 

 

79

 

 

 

74

 

 

 

NDT Fund

 

 

14

 

 

 

3

 

 

 

17

 

 

 

15

 

 

 

Uncertain Tax Positions

 

 

2

 

 

 

1

 

 

 

3

 

 

 

2

 

 

 

GPRC-CEF-EE

 

 

(14

)

 

 

(13

)

 

 

(30

)

 

 

(28

)

 

 

Tax Credits

 

 

(1

)

 

 

(104

)

 

 

(3

)

 

 

(106

)

 

 

Estimated Annual Effective Tax Rate Interim Period Adjustment

 

 

12

 

 

 

5

 

 

 

(25

)

 

 

(12

)

 

 

TAC

 

 

(59

)

 

 

(24

)

 

 

(155

)

 

 

(67

)

 

 

Other

 

 

1

 

 

 

9

 

 

 

1

 

 

 

(2

)

 

 

Subtotal

 

 

(11

)

 

 

(89

)

 

 

(113

)

 

 

(124

)

 

 

Total Income Tax Expense

 

$

141

 

 

$

3

 

 

$

169

 

 

$

100

 

 

 

Effective Income Tax Rate

 

 

19.4

%

 

 

0.7

%

 

 

12.6

%

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

PSE&G

 

June 30,

 

 

June 30,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

365

 

 

$

361

 

 

$

955

 

 

$

941

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

77

 

 

$

76

 

 

$

201

 

 

$

198

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

24

 

 

 

25

 

 

 

67

 

 

 

66

 

 

 

Uncertain Tax Positions

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

Tax Credits

 

 

(1

)

 

 

(2

)

 

 

(3

)

 

 

(4

)

 

 

GPRC-CEF-EE

 

 

(14

)

 

 

(13

)

 

 

(30

)

 

 

(28

)

 

 

TAC

 

 

(59

)

 

 

(24

)

 

 

(155

)

 

 

(67

)

 

 

Bad Debt Flow-Through

 

 

(2

)

 

 

(4

)

 

 

2

 

 

 

(6

)

 

 

Other

 

 

8

 

 

 

1

 

 

 

(6

)

 

 

(8

)

 

 

Subtotal

 

 

(44

)

 

 

(17

)

 

 

(124

)

 

 

(47

)

 

 

Total Income Tax Expense

 

$

33

 

 

$

59

 

 

$

77

 

 

 

151

 

 

 

Effective Income Tax Rate

 

 

9.0

%

 

 

16.3

%

 

 

8.1

%

 

 

16.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG’s and PSE&G’s total income tax expense (benefit) for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, PSEG and PSE&G update the respective estimated annual effective tax rates, and if the estimated tax rate changes, PSEG and PSE&G make cumulative adjustments.

In August 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA enacted a new 15% corporate alternative minimum tax (CAMT), which is based on adjusted financial statement income, effective in 2023, and made certain changes to existing energy tax credit laws.

PSEG determined that it was not subject to the CAMT for 2024 as it was not an applicable corporation in accordance with the statute. Under the same criteria, PSEG determined that it is an applicable corporation in 2025 and therefore it is subject to the CAMT in 2025. The impact of the CAMT for the six months ended June 30, 2025 was not material. In September 2024, the U.S. Treasury issued proposed CAMT regulations on which taxpayers are not required to rely. The proposed CAMT regulations and certain relevant rules remain unclear and require further guidance. As such, the impact of the CAMT on PSEG’s and PSE&G’s financial statements is subject to continued evaluation.

The IRA established a new PTC for existing qualified nuclear generation facilities, effective 2024 through 2032. The PTC for a given nuclear facility is multiplied by five if prevailing wage requirements are met, and the value of the PTC is designed to phase out as the facility’s gross receipts increase. Both the PTC rate and phase out amount are subject to the Internal Revenue Service’s determination of annual inflation beginning in 2025.

PSEG’s estimated full year 2025 gross receipts from its nuclear operations are above the phase out amount, therefore, PSEG did not record a PTC benefit during the three and six months ended June 30, 2025. The financial statement impacts from the PTC are subject to change based on several factors, including but not limited to, adjustments to estimated market prices and generation, and the issuance of authoritative guidance by Treasury/the Internal Revenue Service, including clarification of the definition of “gross receipts” used to determine the phase out. Any adjustments to amounts previously recorded could be material.

In July 2025, “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (the Act) was signed into law. The Act made no material changes to the PTC for existing qualified nuclear generation facilities. The Act permanently extends 100% bonus depreciation to qualified business property retroactive to January 19, 2025. The impact of the Act on PSEG’s and PSE&G’s financial statements is subject to continued evaluation.

The enactment of additional federal or state tax legislation and clarification of previously enacted tax laws could impact PSEG’s and PSE&G’s financial statements.
Public Service Electric and Gas Company [Member]  
Income Taxes [Line Items]  
Income Taxes

Note 13. Income Taxes

A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

PSEG

 

June 30,

 

 

June 30,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

726

 

 

$

437

 

 

$

1,343

 

 

$

1,066

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

152

 

 

$

92

 

 

$

282

 

 

$

224

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

34

 

 

 

34

 

 

 

79

 

 

 

74

 

 

 

NDT Fund

 

 

14

 

 

 

3

 

 

 

17

 

 

 

15

 

 

 

Uncertain Tax Positions

 

 

2

 

 

 

1

 

 

 

3

 

 

 

2

 

 

 

GPRC-CEF-EE

 

 

(14

)

 

 

(13

)

 

 

(30

)

 

 

(28

)

 

 

Tax Credits

 

 

(1

)

 

 

(104

)

 

 

(3

)

 

 

(106

)

 

 

Estimated Annual Effective Tax Rate Interim Period Adjustment

 

 

12

 

 

 

5

 

 

 

(25

)

 

 

(12

)

 

 

TAC

 

 

(59

)

 

 

(24

)

 

 

(155

)

 

 

(67

)

 

 

Other

 

 

1

 

 

 

9

 

 

 

1

 

 

 

(2

)

 

 

Subtotal

 

 

(11

)

 

 

(89

)

 

 

(113

)

 

 

(124

)

 

 

Total Income Tax Expense

 

$

141

 

 

$

3

 

 

$

169

 

 

$

100

 

 

 

Effective Income Tax Rate

 

 

19.4

%

 

 

0.7

%

 

 

12.6

%

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

PSE&G

 

June 30,

 

 

June 30,

 

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

365

 

 

$

361

 

 

$

955

 

 

$

941

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

77

 

 

$

76

 

 

$

201

 

 

$

198

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

24

 

 

 

25

 

 

 

67

 

 

 

66

 

 

 

Uncertain Tax Positions

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

Tax Credits

 

 

(1

)

 

 

(2

)

 

 

(3

)

 

 

(4

)

 

 

GPRC-CEF-EE

 

 

(14

)

 

 

(13

)

 

 

(30

)

 

 

(28

)

 

 

TAC

 

 

(59

)

 

 

(24

)

 

 

(155

)

 

 

(67

)

 

 

Bad Debt Flow-Through

 

 

(2

)

 

 

(4

)

 

 

2

 

 

 

(6

)

 

 

Other

 

 

8

 

 

 

1

 

 

 

(6

)

 

 

(8

)

 

 

Subtotal

 

 

(44

)

 

 

(17

)

 

 

(124

)

 

 

(47

)

 

 

Total Income Tax Expense

 

$

33

 

 

$

59

 

 

$

77

 

 

 

151

 

 

 

Effective Income Tax Rate

 

 

9.0

%

 

 

16.3

%

 

 

8.1

%

 

 

16.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG’s and PSE&G’s total income tax expense (benefit) for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, PSEG and PSE&G update the respective estimated annual effective tax rates, and if the estimated tax rate changes, PSEG and PSE&G make cumulative adjustments.

In August 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA enacted a new 15% corporate alternative minimum tax (CAMT), which is based on adjusted financial statement income, effective in 2023, and made certain changes to existing energy tax credit laws.

PSEG determined that it was not subject to the CAMT for 2024 as it was not an applicable corporation in accordance with the statute. Under the same criteria, PSEG determined that it is an applicable corporation in 2025 and therefore it is subject to the CAMT in 2025. The impact of the CAMT for the six months ended June 30, 2025 was not material. In September 2024, the U.S. Treasury issued proposed CAMT regulations on which taxpayers are not required to rely. The proposed CAMT regulations and certain relevant rules remain unclear and require further guidance. As such, the impact of the CAMT on PSEG’s and PSE&G’s financial statements is subject to continued evaluation.

The IRA established a new PTC for existing qualified nuclear generation facilities, effective 2024 through 2032. The PTC for a given nuclear facility is multiplied by five if prevailing wage requirements are met, and the value of the PTC is designed to phase out as the facility’s gross receipts increase. Both the PTC rate and phase out amount are subject to the Internal Revenue Service’s determination of annual inflation beginning in 2025.

PSEG’s estimated full year 2025 gross receipts from its nuclear operations are above the phase out amount, therefore, PSEG did not record a PTC benefit during the three and six months ended June 30, 2025. The financial statement impacts from the PTC are subject to change based on several factors, including but not limited to, adjustments to estimated market prices and generation, and the issuance of authoritative guidance by Treasury/the Internal Revenue Service, including clarification of the definition of “gross receipts” used to determine the phase out. Any adjustments to amounts previously recorded could be material.

In July 2025, “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (the Act) was signed into law. The Act made no material changes to the PTC for existing qualified nuclear generation facilities. The Act permanently extends 100% bonus depreciation to qualified business property retroactive to January 19, 2025. The impact of the Act on PSEG’s and PSE&G’s financial statements is subject to continued evaluation.

The enactment of additional federal or state tax legislation and clarification of previously enacted tax laws could impact PSEG’s and PSE&G’s financial statements.