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Income Taxes | 9 Months Ended
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Sep. 30, 2011
Income Taxes | 11: INCOME TAXES Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations, excluding noncontrolling interests:
Nine Months Ended September 30 |  | 2011 |  |  | 2010 |
CMS Energy, Including Consumers |  |  |  |  |  |  |  |
U.S. federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |
MCIT law change, net of federal expense |  |  | (5.9 | ) |  |  | — |
State and local income taxes, net of federal benefit |  |  | 3.4 |  |  |  | 4.0 |
Medicare Part D exempt income, net of law change |  |  | (0.9 | ) |  |  | (0.9 | )
Income tax credit amortization |  |  | (0.6 | ) |  |  | (0.6 | )
Other, net |  |  | 0.1 |  |  |  | 0.9 |
Effective income tax rate |  |  | 31.1 | % |  |  | 38.4 | %
Consumers |  |  |  |  |  |  |  |
U.S. federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |
State and local income taxes, net of federal benefit |  |  | 3.1 |  |  |  | 3.5 |
Medicare Part D exempt income, net of law change |  |  | (0.8 | ) |  |  | (1.3 | )
Plant basis differences |  |  | 0.2 |  |  |  | 0.3 |
Income tax credit amortization |  |  | (0.5 | ) |  |  | (0.5 | )
Other, net |  |  | (0.3 | ) |  |  | (0.2 | )
Effective income tax rate |  |  | 36.7 | % |  |  | 36.8 | %
CMS Energy's effective tax rate for the nine months ended September 30, 2011, was reduced due to a one-time non-cash reduction in tax expense resulting from a change in Michigan tax law. In May 2011, Michigan enacted the MCIT, effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, will replace the MBT, which is a complex multi-part business tax. Both the MBT and the MCIT are income taxes for financial reporting purposes, for which deferred income tax assets and liabilities are recorded. CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities at June 30, 2011 to reflect this change in law. Unlike the MBT, the MCIT does not allow future tax deductions to offset the book-tax differences that existed upon enactment of the tax. Due primarily to the elimination of these future tax deductions, Consumers eliminated $134 million of net deferred tax assets associated with its utility book-tax temporary differences, recognizing a $134 million regulatory asset (not including the effects of income tax gross-ups), and in addition to the amounts related to Consumers, CMS Energy eliminated $32 million of net deferred tax liabilities associated with its non-utility book-tax temporary differences, recognizing a $32 million deferred income tax benefit. For the nine months ended September 30, 2010, CMS Energy recognized deferred tax expense of $3 million to reflect the enactment of the Health Care Acts. The law change prospectively repealed the tax deduction for the portion of the health care costs reimbursed by the Medicare Part D subsidy for taxable years beginning after December 31, 2012.
Consumers Energy Company [Member] |
Income Taxes | 11: INCOME TAXES Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations, excluding noncontrolling interests:
Nine Months Ended September 30 |  | 2011 |  |  | 2010 |
CMS Energy, Including Consumers |  |  |  |  |  |  |  |
U.S. federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |
MCIT law change, net of federal expense |  |  | (5.9 | ) |  |  | — |
State and local income taxes, net of federal benefit |  |  | 3.4 |  |  |  | 4.0 |
Medicare Part D exempt income, net of law change |  |  | (0.9 | ) |  |  | (0.9 | )
Income tax credit amortization |  |  | (0.6 | ) |  |  | (0.6 | )
Other, net |  |  | 0.1 |  |  |  | 0.9 |
Effective income tax rate |  |  | 31.1 | % |  |  | 38.4 | %
Consumers |  |  |  |  |  |  |  |
U.S. federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |
State and local income taxes, net of federal benefit |  |  | 3.1 |  |  |  | 3.5 |
Medicare Part D exempt income, net of law change |  |  | (0.8 | ) |  |  | (1.3 | )
Plant basis differences |  |  | 0.2 |  |  |  | 0.3 |
Income tax credit amortization |  |  | (0.5 | ) |  |  | (0.5 | )
Other, net |  |  | (0.3 | ) |  |  | (0.2 | )
Effective income tax rate |  |  | 36.7 | % |  |  | 36.8 | %
CMS Energy's effective tax rate for the nine months ended September 30, 2011, was reduced due to a one-time non-cash reduction in tax expense resulting from a change in Michigan tax law. In May 2011, Michigan enacted the MCIT, effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, will replace the MBT, which is a complex multi-part business tax. Both the MBT and the MCIT are income taxes for financial reporting purposes, for which deferred income tax assets and liabilities are recorded. CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities at June 30, 2011 to reflect this change in law. Unlike the MBT, the MCIT does not allow future tax deductions to offset the book-tax differences that existed upon enactment of the tax. Due primarily to the elimination of these future tax deductions, Consumers eliminated $134 million of net deferred tax assets associated with its utility book-tax temporary differences, recognizing a $134 million regulatory asset (not including the effects of income tax gross-ups), and in addition to the amounts related to Consumers, CMS Energy eliminated $32 million of net deferred tax liabilities associated with its non-utility book-tax temporary differences, recognizing a $32 million deferred income tax benefit. For the nine months ended September 30, 2010, CMS Energy recognized deferred tax expense of $3 million to reflect the enactment of the Health Care Acts. The law change prospectively repealed the tax deduction for the portion of the health care costs reimbursed by the Medicare Part D subsidy for taxable years beginning after December 31, 2012.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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