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TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
TAXES | TAXES Components of income tax expense are detailed in the following tables.
Evergy |  |  |  |  | 2023 |  | 2022 |  | 2021
Current income taxes |  |  |  |  | (millions)
Federal |  |  |  |  | $ | 25.3 |  |  | $ | 31.9 |  |  | $ | 15.6 |
State |  |  |  |  | 6.9 |  |  | 8.3 |  |  | (0.4) |
Total |  |  |  |  | 32.2 |  |  | 40.2 |  |  | 15.2 |
Deferred income taxes |  |  |  |  |  |  |  |  |
Federal |  |  |  |  | 10.2 |  |  | 17.2 |  |  | 92.8 |
State |  |  |  |  | (21.7) |  |  | (3.4) |  |  | 14.7 |
Total |  |  |  |  | (11.5) |  |  | 13.8 |  |  | 107.5 |
Investment tax credit |  |  |  |  |  |  |  |  |
Deferral |  |  |  |  | 2.2 |  |  | — |  |  | 0.4 |
Amortization |  |  |  |  | (7.3) |  |  | (6.5) |  |  | (5.7) |
Total |  |  |  |  | (5.1) |  |  | (6.5) |  |  | (5.3) |
Income tax expense |  |  |  |  | $ | 15.6 |  |  | $ | 47.5 |  |  | $ | 117.4 |
Evergy Kansas Central |  |  |  |  | 2023 |  | 2022 |  | 2021
Current income taxes |  |  |  |  | (millions)
Federal |  |  |  |  | $ | 27.8 |  |  | $ | 95.8 |  |  | $ | 53.3 |
State |  |  |  |  | 4.7 |  |  | 3.9 |  |  | (0.2) |
Total |  |  |  |  | 32.5 |  |  | 99.7 |  |  | 53.1 |
Deferred income taxes |  |  |  |  |  |  |  |  |
Federal |  |  |  |  | (29.3) |  |  | (78.7) |  |  | 3.8 |
State |  |  |  |  | (7.4) |  |  | (4.6) |  |  | (1.2) |
Total |  |  |  |  | (36.7) |  |  | (83.3) |  |  | 2.6 |
Investment tax credit |  |  |  |  |  |  |  |  |
Deferral |  |  |  |  | 2.2 |  |  | — |  |  | 0.3 |
Amortization |  |  |  |  | (3.9) |  |  | (4.1) |  |  | (4.3) |
Total |  |  |  |  | (1.7) |  |  | (4.1) |  |  | (4.0) |
Income tax expense (benefit) |  |  |  |  | $ | (5.9) |  |  | $ | 12.3 |  |  | $ | 51.7 |
Evergy Metro |  |  |  |  | 2023 |  | 2022 |  | 2021
Current income taxes |  |  |  |  | (millions)
Federal |  |  |  |  | $ | 13.2 |  |  | $ | (21.9) |  |  | $ | 39.2 |
State |  |  |  |  | 3.7 |  |  | 4.1 |  |  | 3.2 |
Total |  |  |  |  | 16.9 |  |  | (17.8) |  |  | 42.4 |
Deferred income taxes |  |  |  |  |  |  |  |  |
Federal |  |  |  |  | 33.6 |  |  | 69.9 |  |  | 6.5 |
State |  |  |  |  | (7.8) |  |  | 0.6 |  |  | 4.8 |
Total |  |  |  |  | 25.8 |  |  | 70.5 |  |  | 11.3 |
Investment tax credit amortization |  |  |  |  | (3.5) |  |  | (2.4) |  |  | (1.3) |
Income tax expense |  |  |  |  | $ | 39.2 |  |  | $ | 50.3 |  |  | $ | 52.4 |
Effective Income Tax Rates Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.
Evergy |  |  |  |  | 2023 |  | 2022 |  | 2021
Federal statutory income tax |  |  |  |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
COLI policies |  |  |  |  | (1.9) |  |  | (1.2) |  |  | (1.0) |
State income taxes |  |  |  |  | (1.9) |  |  | 0.3 |  |  | 1.0 |
Flow through depreciation for plant-related differences |  |  |  |  | (8.0) |  |  | (8.4) |  |  | (5.4) |
Federal tax credits |  |  |  |  | (6.2) |  |  | (4.0) |  |  | (2.8) |
Non-controlling interest |  |  |  |  | (0.3) |  |  | (0.3) |  |  | (0.3) |
AFUDC equity |  |  |  |  | (0.3) |  |  | (0.6) |  |  | (0.6) |
Amortization of federal investment tax credits |  |  |  |  | (0.7) |  |  | (0.6) |  |  | (0.4) |
Valuation allowance |  |  |  |  | 0.4 |  |  | — |  |  | — |
Stock compensation |  |  |  |  | — |  |  | (0.2) |  |  | — |
Officer compensation limitation |  |  |  |  | 0.3 |  |  | 0.3 |  |  | 0.5 |
Other |  |  |  |  | (0.4) |  |  | (0.5) |  |  | (0.4) |
Effective income tax rate |  |  |  |  | 2.0 | % |  | 5.8 | % |  | 11.6 | %
Evergy Kansas Central |  |  |  |  | 2023 |  | 2022 |  | 2021
Federal statutory income tax |  |  |  |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
COLI policies |  |  |  |  | (3.6) |  |  | (2.2) |  |  | (1.7) |
State income taxes |  |  |  |  | (1.0) |  |  | (0.4) |  |  | (0.4) |
Flow through depreciation for plant-related differences |  |  |  |  | (5.0) |  |  | (6.6) |  |  | (3.0) |
Federal tax credits |  |  |  |  | (11.7) |  |  | (7.2) |  |  | (5.0) |
Non-controlling interest |  |  |  |  | (0.7) |  |  | (0.6) |  |  | (0.5) |
AFUDC equity |  |  |  |  | (0.4) |  |  | (0.4) |  |  | (0.6) |
Amortization of federal investment tax credits |  |  |  |  | (0.6) |  |  | (0.5) |  |  | (0.5) |
Valuation allowance |  |  |  |  | 0.7 |  |  | — |  |  | — |
Stock compensation |  |  |  |  | — |  |  | (0.2) |  |  | (0.1) |
Officer compensation limitation |  |  |  |  | — |  |  | 0.1 |  |  | 0.3 |
Other |  |  |  |  | (0.3) |  |  | (0.2) |  |  | (0.1) |
Effective income tax rate |  |  |  |  | (1.6) | % |  | 2.8 | % |  | 9.4 | %
Evergy Metro |  |  |  |  | 2023 |  | 2022 |  | 2021
Federal statutory income tax |  |  |  |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
COLI policies |  |  |  |  | (0.1) |  |  | (0.1) |  |  | (0.2) |
State income taxes |  |  |  |  | (0.9) |  |  | 0.9 |  |  | 1.7 |
Flow through depreciation for plant-related differences |  |  |  |  | (7.6) |  |  | (7.2) |  |  | (7.8) |
Federal tax credits |  |  |  |  | (0.7) |  |  | (0.1) |  |  | (0.2) |
AFUDC equity |  |  |  |  | (0.3) |  |  | (0.7) |  |  | (0.7) |
Amortization of federal investment tax credits |  |  |  |  | (0.9) |  |  | (0.6) |  |  | (0.4) |
Stock compensation |  |  |  |  | 0.1 |  |  | (0.2) |  |  | — |
Officer compensation limitation |  |  |  |  | 0.5 |  |  | 0.5 |  |  | 0.9 |
Other |  |  |  |  | (0.5) |  |  | (1.1) |  |  | 0.1 |
Effective income tax rate |  |  |  |  | 10.6 | % |  | 12.4 | % |  | 14.4 | %
Deferred Income Taxes The tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets is in the following table.
| December 31
| 2023 |  | 2022
| Evergy |  | Evergy Kansas Central |  | Evergy Metro |  | Evergy |  | Evergy Kansas Central |  | Evergy Metro
Deferred tax assets: | (millions)
Tax credit carryforward | $ | 288.9 |  |  | $ | 242.7 |  |  | $ | 43.6 |  |  | $ | 311.0 |  |  | $ | 226.9 |  |  | $ | 77.6 |
Income taxes refundable to customers, net | 289.4 |  |  | 149.1 |  |  | 103.6 |  |  | 311.0 |  |  | 156.5 |  |  | 113.6 |
Deferred employee benefit costs | 101.5 |  |  | 52.1 |  |  | 58.2 |  |  | 86.2 |  |  | 45.1 |  |  | 54.7 |
Net operating loss carryforward | 22.5 |  |  | — |  |  | — |  |  | 31.7 |  |  | — |  |  | — |
Deferred state income taxes | 141.0 |  |  | 99.2 |  |  | 36.2 |  |  | 145.6 |  |  | 99.8 |  |  | 38.6 |
Accrued liabilities | 185.9 |  |  | 85.9 |  |  | 66.8 |  |  | 169.7 |  |  | 77.5 |  |  | 61.6 |
Other regulatory liabilities | 132.0 |  |  | 86.4 |  |  | 17.1 |  |  | 116.4 |  |  | 43.7 |  |  | 30.6 |
Other | 121.7 |  |  | 64.2 |  |  | 25.1 |  |  | 131.7 |  |  | 69.0 |  |  | 28.2 |
Total deferred tax assets before valuation allowance | 1,282.9 |  |  | 779.6 |  |  | 350.6 |  |  | 1,303.3 |  |  | 718.5 |  |  | 404.9 |
Valuation allowances | (14.8) |  |  | (2.7) |  |  | — |  |  | (12.8) |  |  | — |  |  | — |
Total deferred tax assets, net | 1,268.1 |  |  | 776.9 |  |  | 350.6 |  |  | 1,290.5 |  |  | 718.5 |  |  | 404.9 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |
Plant-related | (2,818.4) |  |  | (1,397.1) |  |  | (1,030.2) |  |  | (2,770.9) |  |  | (1,333.2) |  |  | (1,016.4) |
Deferred employee benefit costs | (11.1) |  |  | (10.6) |  |  | — |  |  | (8.8) |  |  | (8.3) |  |  | — |
ARO regulatory assets | (159.1) |  |  | (67.2) |  |  | (60.3) |  |  | (144.3) |  |  | (59.4) |  |  | (54.3) |
Acquisition premium | (37.4) |  |  | (37.4) |  |  | — |  |  | (40.6) |  |  | (40.6) |  |  | — |
Other regulatory assets | (231.3) |  |  | (43.6) |  |  | (34.1) |  |  | (195.6) |  |  | (41.7) |  |  | (28.6) |
Other | (108.7) |  |  | (65.2) |  |  | (23.2) |  |  | (126.9) |  |  | (79.8) |  |  | (26.5) |
Total deferred tax liabilities | (3,366.0) |  |  | (1,621.1) |  |  | (1,147.8) |  |  | (3,287.1) |  |  | (1,563.0) |  |  | (1,125.8) |
Net deferred income tax liabilities | $ | (2,097.9) |  |  | $ | (844.2) |  |  | $ | (797.2) |  |  | $ | (1,996.6) |  |  | $ | (844.5) |  |  | $ | (720.9) |
Tax Credit Carryforwards As of December 31, 2023 and 2022, Evergy had $284.1 million and $311.0 million, respectively, of federal general business income tax credit carryforwards. As of December 31, 2023 and 2022, Evergy Kansas Central had $237.9 million and $226.9 million, respectively, of federal general business income tax credit carryforwards. As of December 31, 2023 and 2022, Evergy Metro had $43.6 million and $77.6 million, respectively, of federal general business income tax credit carryforwards. The carryforwards for Evergy, Evergy Kansas Central and Evergy Metro relate primarily to wind production tax credits and research and development tax credits and expire in the years 2024 to 2043. Approximately $0.1 million of Evergy's credits are related to Low Income Housing credits that were acquired in Great Plains Energy's acquisition of Evergy Missouri West. The year of origin of Evergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 2023 are detailed in the following table.
|  | Amount of Benefit |
Year of Origin |  | Evergy |  | Evergy Kansas Central |  | Evergy Metro |
|  | (millions) |
2007 |  | 0.1 |  |  | — |  |  | — |  |
2016 |  | 8.5 |  |  | 3.2 |  |  | 4.6 |  |
2017 |  | 44.0 |  |  | 34.9 |  |  | 8.4 |  |
2018 |  | 43.9 |  |  | 36.3 |  |  | 7.5 |  |
2019 |  | 37.7 |  |  | 30.9 |  |  | 6.7 |  |
2020 |  | 35.9 |  |  | 28.4 |  |  | 7.4 |  |
2021 |  | 31.9 |  |  | 28.1 |  |  | 3.7 |  |
2022 |  | 34.8 |  |  | 31.7 |  |  | 2.6 |  |
2023 |  | 47.3 |  |  | 44.4 |  |  | 2.7 |  |
|  | $ | 284.1 |  |  | $ | 237.9 |  |  | $ | 43.6 |  |
As of December 31, 2023, Evergy had $4.8 million of tax benefits related to state income tax credit carryforwards. As of December 31, 2023, Evergy Kansas Central had $4.8 million of tax benefits related to state income tax credit carryforwards. The state income tax credits relate primarily to the Kansas high performance incentive program tax credits and expire in the years 2038 to 2039. Due to the elimination of the Kansas corporate income tax for utilities, Evergy and Evergy Kansas Central expect a portion of these state NOL carryforwards to expire unutilized and have provided a valuation allowance against $2.7 million of the state tax benefits. Net Operating Loss Carryforwards As of December 31, 2023 and 2022, Evergy had $17.2 million and $25.4 million, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards. Approximately $7.1 million of Evergy's tax benefits as of December 31, 2023 are related to NOLs that were acquired in the Evergy Missouri West acquisition. Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these federal NOL carryforwards to expire unutilized and has provided a valuation allowance against $7.1 million of the federal income tax benefit. The federal NOL carryforwards expire in 2024. The year of origin of Evergy's related tax benefit amounts for federal NOL carryforwards as of December 31, 2023 are detailed in the following table.
Year of Origin |  | Amount of Benefit |
|  | (millions)
2006 |  | $ | 17.2 |  |
In addition, Evergy also had deferred tax benefits of $5.3 million and $6.3 million related to state NOLs as of December 31, 2023 and 2022, respectively. The state NOL carryforwards expire in years 2024 to 2041. Evergy does not expect to utilize $5.0 million of NOLs before the expiration date of the carryforwards of NOLs in certain states. Therefore, a valuation allowance has been provided against $5.0 million of state tax benefits. Valuation Allowances Evergy is required to assess the ultimate realization of deferred tax assets using a "more likely than not" assessment threshold. This assessment takes into consideration tax planning strategies within Evergy's control. As a result of this assessment, Evergy has established a partial valuation allowance for federal and state tax NOL carryforwards and tax credit carryforwards. During 2023, Evergy recorded $2.0 million of tax expense in continuing operations primarily related to state tax credits. Uncertain Tax Positions Evergy is considered open to U.S. federal examination for years after 2009 due to the carryforward of net operating losses and general business income tax credits. With few exceptions, Evergy is no longer subject to state and local tax examinations by tax authorities for years before 2018. As of December 31, 2023, Evergy does not have any significant income tax issues under examination. Inflation Reduction Act (IRA) In 2022, the IRA was signed into law, providing a production tax credit (PTC) for electricity produced by existing nuclear power plants. The Evergy Companies are still evaluating the IRA, pending the issuance of additional guidance, and its impact to the Evergy Companies' consolidated financial results.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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