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Income Taxes | 6 Months Ended
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Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | 6. Income Taxes Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.
(PPL) |  |  |  |  |  |  |
| Three Months |  |  |  | Six Months |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Federal income tax on Income Before Income Taxes at statutory tax rate - 21% | $ | 88 |  |  | $ | 110 |  |  | $ | 234 |  |  | $ | 235 |
Increase (decrease) due to: |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 11 |  |  | 8 |  |  | 24 |  |  | 21 |
Valuation allowance adjustments (a) | 7 |  |  | 7 |  |  | 13 |  |  | 14 |
Impact of lower U.K. income tax rates | (9) |  |  | (6) |  |  | (20) |  |  | (14) |
Amortization of excess deferred federal and state income taxes | (12) |  |  | (10) |  |  | (23) |  |  | (21) |
Interest benefit on U.K. financing entities | (3) |  |  | (3) |  |  | (5) |  |  | (6) |
Kentucky recycling credit, net of federal income tax expense (a) | — |  |  | (20) |  |  | — |  |  | (20) |
Other | (8) |  |  | (2) |  |  | (9) |  |  | 1 |
Total increase (decrease) | (14) |  |  | (26) |  |  | (20) |  |  | (25) |
Total income tax expense (benefit) | $ | 74 |  |  | $ | 84 |  |  | $ | 214 |  |  | $ | 210 |
(a) During the second quarter of 2019, LKE recorded a deferred income tax benefit associated with two projects placed into service that prepare a generation waste material for reuse and, as a result, qualify for a Kentucky recycling credit. The applicable credit provides tax benefits for a portion of the equipment costs for major recycling projects in Kentucky. A portion of this amount has been reserved due to insufficient Kentucky taxable income projected at LKE.
(PPL Electric) |  |  |  |  |  |  |
| Three Months |  |  |  | Six Months |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Federal income tax on Income Before Income Taxes at statutory tax rate - 21% | $ | 33 |  |  | $ | 26 |  |  | $ | 67 |  |  | $ | 61 |
Increase (decrease) due to: |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 12 |  |  | 10 |  |  | 25 |  |  | 23 |
Depreciation and other items not normalized | (2) |  |  | (1) |  |  | (4) |  |  | (3) |
Amortization of excess deferred federal and state income taxes | (5) |  |  | (4) |  |  | (8) |  |  | (8) |
Other | 2 |  |  | 1 |  |  | 1 |  |  | 1 |
Total increase (decrease) | 7 |  |  | 6 |  |  | 14 |  |  | 13 |
Total income tax expense (benefit) | $ | 40 |  |  | $ | 32 |  |  | $ | 81 |  |  | $ | 74 |
(LKE) |  |  |  |  |  |  |
| Three Months |  |  |  | Six Months |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Federal income tax on Income Before Income Taxes at statutory tax rate - 21% | $ | 21 |  |  | $ | 23 |  |  | $ | 56 |  |  | $ | 56 |
Increase (decrease) due to: |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 4 |  |  | 4 |  |  | 11 |  |  | 10 |
Valuation allowance adjustments (a) | — |  |  | 3 |  |  | — |  |  | 3 |
Amortization of excess deferred federal and state income taxes | (6) |  |  | (6) |  |  | (13) |  |  | (12) |
Kentucky recycling credit, net of federal income tax expense (a) | — |  |  | (20) |  |  | — |  |  | (20) |
Other | (2) |  |  | (1) |  |  | (3) |  |  | (2) |
Total increase (decrease) | (4) |  |  | (20) |  |  | (5) |  |  | (21) |
Total income tax expense (benefit) | $ | 17 |  |  | $ | 3 |  |  | $ | 51 |  |  | $ | 35 |
(a)During the second quarter of 2019, LKE recorded a deferred income tax benefit associated with two projects placed into service that prepare a generation waste material for reuse and, as a result, qualify for a Kentucky recycling credit. The applicable credit provides tax benefits for a portion of the equipment costs for major recycling projects in Kentucky. A portion of this amount has been reserved due to insufficient Kentucky taxable income projected at LKE.
(LG&E) |  |  |  |  |  |  |
| Three Months |  |  |  | Six Months |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Federal income tax on Income Before Income Taxes at statutory tax rate - 21% | $ | 12 |  |  | $ | 12 |  |  | $ | 32 |  |  | $ | 29 |
Increase (decrease) due to: |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 2 |  |  | 2 |  |  | 6 |  |  | 5 |
Valuation allowance adjustments (a) | — |  |  | 15 |  |  | — |  |  | 15 |
Amortization of excess deferred federal and state income taxes | (2) |  |  | (2) |  |  | (5) |  |  | (5) |
Kentucky recycling credit, net of federal income tax expense (a) | — |  |  | (15) |  |  | — |  |  | (15) |
Other | — |  |  | — |  |  | (2) |  |  | — |
Total increase (decrease) | — |  |  | — |  |  | (1) |  |  | — |
Total income tax expense (benefit) | $ | 12 |  |  | $ | 12 |  |  | $ | 31 |  |  | $ | 29 |
(a)During the second quarter of 2019, LG&E recorded a deferred income tax benefit associated with two projects placed into service that prepare a generation waste material for reuse and, as a result, qualify for a Kentucky recycling credit. The applicable credit provides tax benefits for a portion of the equipment costs for major recycling projects in Kentucky. This amount has been reserved due to insufficient Kentucky taxable income projected at LG&E.
(KU) |  |  |  |  |  |  |
| Three Months |  |  |  | Six Months |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Federal income tax on Income Before Income Taxes at statutory tax rate - 21% | $ | 13 |  |  | $ | 16 |  |  | $ | 34 |  |  | $ | 37 |
Increase (decrease) due to: |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 3 |  |  | 3 |  |  | 6 |  |  | 7 |
Valuation allowance adjustments (a) | — |  |  | 5 |  |  | — |  |  | 5 |
Amortization of excess deferred federal and state income taxes | (4) |  |  | (4) |  |  | (8) |  |  | (7) |
Kentucky recycling credit, net of federal income tax expense (a) | — |  |  | (5) |  |  | — |  |  | (5) |
Other | (1) |  |  | (1) |  |  | (1) |  |  | (1) |
Total increase (decrease) | (2) |  |  | (2) |  |  | (3) |  |  | (1) |
Total income tax expense (benefit) | $ | 11 |  |  | $ | 14 |  |  | $ | 31 |  |  | $ | 36 |
(a)During the second quarter of 2019, KU recorded a deferred income tax benefit associated with two projects placed into service that prepare a generation waste material for reuse and, as a result, qualify for a Kentucky recycling credit. The applicable credit provides tax benefits for a portion of the equipment costs for major recycling projects in Kentucky. This amount has been reserved due to insufficient Kentucky taxable income projected at KU. Other U.K. Corporation Tax Rate Change (PPL) The U.K. corporation tax rate was scheduled to be reduced from 19% to 17%, effective April 1, 2020. On March 11, 2020, the U.K. Finance Act 2020 included a cancellation of the tax rate reduction to 17%, thereby maintaining the corporation tax rate at 19% for financial years 2020 and 2021. The Finance Act 2020 was formally enacted on July 22, 2020. The impact of the cancellation of the corporate tax rate reduction will result in an increase in deferred tax liabilities and a corresponding deferred tax expense of approximately $100 million to $110 million, which will be recorded in the third quarter of 2020. 2020 TCJA Regulatory Update (All Registrants) In July 2020, the IRS issued final and new proposed regulations relating to limitations on interest deductibility for tax purposes. The final regulations are expected to apply to the Registrants for 2020, while the proposed regulations will apply in the year in which the regulations are issued in final form, which is expected to be in 2021. The Registrants are evaluating the final and proposed regulations, but do not expect the regulations to have a material impact on the Registrants’ financial condition or results of operations.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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