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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income tax expense are as follows:
Eversource
(Millions of Dollars)
For the Years Ended December 31,
202420232022
Current Income Taxes:   
Federal$(23.4)$75.8 $95.8 
State14.3 0.6 13.6 
Total Current(9.1)76.4 109.4 
Deferred Income Taxes, Net: 
Federal266.3 (0.9)198.8 
State169.6 86.3 148.0 
Total Deferred435.9 85.4 346.8 
Investment Tax Credits, Net(2.1)(2.1)(2.6)
Income Tax Expense$424.7 $159.7 $453.6 
 For the Years Ended December 31,
 202420232022
(Millions of Dollars)CL&PNSTAR
Electric		PSNHCL&PNSTAR ElectricPSNHCL&PNSTAR ElectricPSNH
Current Income Taxes:         
Federal$25.9 $65.9 $(1.7)$(10.8)$50.7 $(40.0)$106.2 $55.0 $29.6 
State(6.8)15.2 (5.2)(2.3)7.8 (20.0)20.1 8.7 5.9 
Total Current19.1 81.1 (6.9)(13.1)58.5 (60.0)126.3 63.7 35.5 
Deferred Income Taxes, Net:   
Federal107.9 63.9 50.8 130.3 50.1 81.2 17.2 35.6 5.9 
State67.5 47.3 26.3 53.7 46.1 37.8 28.2 42.4 9.9 
Total Deferred175.4 111.2 77.1 184.0 96.2 119.0 45.4 78.0 15.8 
Investment Tax Credits, Net— (1.7)— — (1.7)— (0.5)(1.7)— 
Income Tax Expense$194.5 $190.6 $70.2 $170.9 $153.0 $59.0 $171.2 $140.0 $51.3 
A reconciliation between income tax expense and the expected tax expense at the statutory rate is as follows:
Eversource
(Millions of Dollars, except percentages)
For the Years Ended December 31,
202420232022
Income/(Loss) Before Income Tax Expense$1,243.8 $(275.0)$1,866.0 
Statutory Federal Income Tax Expense at 21%261.2 (57.7)391.9 
Tax Effect of Differences:  
Depreciation(22.6)(25.8)(17.1)
Investment Tax Credit Amortization(2.1)(2.1)(2.6)
Other Federal Tax Credits(67.0)(42.5)— 
State Income Taxes, Net of Federal Impact43.2 (11.4)75.9 
Dividends on ESOP(5.5)(5.3)(5.1)
Tax Asset Valuation Allowance/Reserve Adjustments278.6 295.8 51.6 
Tax Deficiency/(Excess Stock Benefit)2.3 0.5 (2.1)
EDIT Amortization(37.0)(51.5)(49.1)
Other, Net(26.4)59.7 10.2 
Income Tax Expense$424.7 $159.7 $453.6 
Effective Tax Rate34.1 %(58.1)%24.3 %
 For the Years Ended December 31,
 202420232022
(Millions of Dollars, except percentages)CL&PNSTAR
Electric		PSNHCL&PNSTAR
Electric		PSNHCL&PNSTAR
Electric		PSNH
Income Before Income Tax Expense$707.1 $826.9 $285.1 $689.6 $697.5 $254.7 $704.1 $632.4 $222.9 
Statutory Federal Income Tax Expense at 21%148.5 173.7 59.9 144.9 146.5 53.5 147.9 132.8 46.8 
Tax Effect of Differences:         
Depreciation0.4 (10.9)(1.0)(5.6)(8.8)(1.0)(3.7)(4.2)0.9 
Investment Tax Credit Amortization— (1.7)— — (1.7)— (0.5)(1.7)— 
State Income Taxes, Net of Federal Impact(2.8)49.4 16.7 (10.7)42.5 14.1 (6.6)40.3 12.5 
Tax Asset Valuation
  Allowance/Reserve Adjustments		50.8 — — 51.3 — — 44.7 — — 
Tax Deficiency/(Excess Stock Benefit)0.8 0.8 0.3 0.2 0.2 0.1 (0.7)(0.8)(0.3)
EDIT Amortization(9.2)(20.0)(6.5)(10.5)(28.4)(6.8)(9.2)(29.2)(7.7)
Other, Net6.0 (0.7)0.8 1.3 2.7 (0.9)(0.7)2.8 (0.9)
Income Tax Expense$194.5 $190.6 $70.2 $170.9 $153.0 $59.0 $171.2 $140.0 $51.3 
Effective Tax Rate27.5 %23.0 %24.6 %24.8 %21.9 %23.2 %24.3 %22.1 %23.0 %

Eversource, CL&P, NSTAR Electric and PSNH file a consolidated federal income tax return and unitary, combined and separate state income tax returns.  These entities are also parties to a tax allocation agreement under which taxable subsidiaries do not pay any more taxes than they would have otherwise paid had they filed a separate company tax return, and subsidiaries generating tax losses, if any, are paid for their losses when utilized.
Deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the carrying amounts and the tax basis of assets and liabilities.  The tax effect of temporary differences is accounted for in accordance with the rate-making treatment of the applicable regulatory commissions and relevant accounting authoritative literature.  The tax effects of temporary differences that give rise to the net accumulated deferred income tax obligations are as follows:
 As of December 31,
 20242023
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHEversourceCL&PNSTAR
Electric		PSNH
Deferred Tax Assets:     
Employee Benefits$266.9 $33.7 $83.5 $14.5 $244.5 $29.9 $66.8 $13.0 
Derivative Liabilities19.6 19.6 — — 33.0 33.0 — — 
Regulatory Deferrals - Liabilities508.7 128.0 316.7 19.6 452.0 94.4 291.5 23.8 
Allowance for Uncollectible Accounts145.3 75.4 26.5 3.8 143.8 79.6 21.5 3.9 
Tax Effect - Tax Regulatory Liabilities720.8 317.6 214.3 93.2 739.0 320.7 227.1 95.5 
Net Operating Loss Carryforwards198.2 — — 1.5 13.8 — — — 
Purchase Accounting Adjustment52.1 — — — 56.7 — — — 
Equity Method Wind Investments1,098.6 — — — 584.9 — — — 
Other267.1 134.7 31.5 24.1 200.1 125.3 25.0 23.4 
Total Deferred Tax Assets3,277.3 709.0 672.5 156.7 2,467.8 682.9 631.9 159.6 
Less:  Valuation Allowance (1)
558.2 104.1 — — 328.1 80.6 — — 
Net Deferred Tax Assets$2,719.1 $604.9 $672.5 $156.7 $2,139.7 $602.3 $631.9 $159.6 
Deferred Tax Liabilities:        
Accelerated Depreciation and Other
  Plant-Related Differences		$5,493.3 $1,820.3 $1,845.2 $618.4 $5,103.3 $1,703.4 $1,728.6 $566.5 
Property Tax Accruals107.4 49.8 44.5 6.5 95.0 42.0 39.8 6.3 
Regulatory Amounts:
Regulatory Deferrals - Assets1,709.1 522.9 519.9 277.8 1,512.3 470.0 474.5 250.3 
Tax Effect - Tax Regulatory Assets294.5 194.7 10.0 9.4 284.0 191.9 10.5 8.3 
Goodwill-related Regulatory Asset - 1999 Merger67.5 — 58.0 — 72.2 — 61.9 — 
Employee Benefits353.0 51.0 175.4 23.5 282.0 38.8 146.7 16.8 
Derivative Assets3.8 3.8 — — 6.4 6.4 — — 
Other101.7 15.2 24.9 2.7 88.2 9.9 19.5 2.9 
Total Deferred Tax Liabilities$8,130.3 $2,657.7 $2,677.9 $938.3 $7,443.4 $2,462.4 $2,481.5 $851.1 

(1)    As of December 31, 2024 and 2023, the Eversource Valuation Allowance of $558.2 million and $328.1 million, includes $427.0 million and $224.0 million, respectively, related to Eversource’s share of offshore wind investments.

Carryforwards:  The following table provides the amounts and expiration dates of state tax credit and loss carryforwards and federal tax credit and net operating loss carryforwards:
As of December 31,
 20242023
(Millions of Dollars)EversourceCL&PNSTAR
Electric		PSNHExpiration RangeEversourceCL&PNSTAR
Electric		PSNHExpiration Range
Federal Net Operating Loss$877.7 $— $— $7.1 —$— $— $— $— —
Federal Tax Credit404.1 — — — 2044— — — — —
Federal Capital Loss2,700.0 — — — 2024 - 2029— — — — —
State Net Operating Loss214.1 — — — 2024 - 2044243.4 — — — 2023 - 2041
State Tax Credit238.3 157.7 — — 2024 - 2029228.5 157.5 — — 2023 - 2028
State Capital Loss2,700.0 — — — 2024 - 2029— — — — —
State Charitable Contribution15.2 — — — 2024 - 20287.9 — — — 2023 - 2027

In 2024 and 2023, the Company increased its valuation allowance reserve for state credits by $27.3 million ($23.5 million for CL&P), net of tax, and $21.3 million ($17.3 million for CL&P), net of tax, respectively, to reflect an update for expiring tax credits.

For 2024, state credit and federal and state loss carryforwards have been partially reserved by a valuation allowance of $558.2 million (net of tax) and for 2023, state credit and state loss carryforwards were partially reserved by a valuation allowance of $104.1 million (net of tax).    
Unrecognized Tax Benefits:  A reconciliation of the activity in unrecognized tax benefits, all of which would impact the effective tax rate if recognized, is as follows:
(Millions of Dollars)EversourceCL&P
Balance as of January 1, 2022$65.8 $26.2 
Gross Increases - Current Year11.5 3.5 
Gross Decreases - Prior Year(2.4)(0.9)
Lapse of Statute of Limitations(7.8)(3.3)
Balance as of December 31, 202267.1 25.5 
Gross Increases - Current Year23.4 4.0 
Gross Increases - Prior Year0.1 0.1 
Gross Decreases - Prior Year(0.1)— 
Lapse of Statute of Limitations(9.2)(3.8)
Balance as of December 31, 202381.3 25.8 
Gross Increases - Current Year14.2 2.9 
Gross Increases - Prior Year11.0 — 
Gross Decreases - Prior Year(0.2)(0.2)
Lapse of Statute of Limitations(12.6)(6.6)
Balance as of December 31, 2024$93.7 $21.9 

Interest and Penalties:  Interest on uncertain tax positions is recorded and generally classified as a component of Other Interest Expense on the statements of income.  However, when resolution of uncertainties results in the Company receiving interest income, any related interest benefit is recorded in Other Income, Net on the statements of income.  No penalties have been recorded. The amount of interest expense recognized on uncertain tax positions was $1.3 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively. There was no interest expense/(income) recognized on uncertain tax positions for the year ended December 31, 2022. Accrued interest payable was $1.7 million and $0.4 million as of December 31, 2024 and 2023, respectively.

Tax Positions:  During 2024 and 2023, Eversource did not resolve any of its uncertain tax positions.

Open Tax Years:  The following table summarizes Eversource, CL&P, NSTAR Electric, and PSNH's tax years that remain subject to examination by major tax jurisdictions as of December 31, 2024:
DescriptionTax Years
Federal
   2022 - 2024(1)
Connecticut2021 - 2024
Massachusetts2022 - 2024
New Hampshire2021 - 2024

(1) The Company’s Corporate Income Tax Returns for 2022 and 2023 were reviewed and closed as part of the annual IRS CAP program, with the exception for partnership investments of the Company. The Company was recently informed of an IRS audit of one of the partnership returns for the tax year 2022 and the IRS reserves the right to audit 2023. The Company recorded in the above Unrecognized Tax Benefits a reserve associated with this Partnership audit. These years remain open in relation to those audits.

Eversource does not estimate to have an earnings impact related to unrecognized tax benefits during the next twelve months.