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Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Income Tax Rate
The income tax provision consisted of the following:
 Three months ended June 30,Six months ended June 30,
(In millions, except rates)2022202120222021
Income before income taxes$665 $1,458 $2,972 $1,291 
Income tax expense152 380 723 295 
Effective income tax rate22.9 %26.1 %24.3 %22.9 %
For the three and six months ended June 30, 2022, the effective tax rates were higher than the statutory rate of 21% primarily due to state tax expense partially offset by tax benefit resulting from the release of valuation allowance on state net operating losses. For the three months ended June 30, 2021, the effective tax rate was higher than the statutory rate of 21% primarily due to state tax expense. For the six months ended June 30, 2021 the effective tax rate was higher than the statutory rate of 21% primarily due to state tax expense partially offset by one-time tax benefits, as a result of the acquisition of Direct Energy, on the revaluation of state deferred tax assets, NOLs and valuation allowance.
Uncertain Tax Benefits
As of June 30, 2022, NRG had a non-current tax liability of $20 million for uncertain tax benefits from positions taken on various federal and state income tax returns and accrued interest. For the six months ended June 30, 2022, NRG accrued an immaterial amount of interest relating to the uncertain tax benefits. As of June 30, 2022, NRG had cumulative interest and penalties related to these uncertain tax benefits of $1 million. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense.
NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including operations located in Australia and Canada. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2017. With few exceptions, state and local income tax examinations are no longer open for years prior to 2013.