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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Taxes [Line Items] |
Schedule of Effective Income Tax Rate Reconciliation | Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31 |  | 2024 |  | 2023 | 2022
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 1,123 |  |  |  |  | $ | 954 |  |  | $ | 902 |
Income tax expense at statutory rate |  |  |  | 236 |  |  |  |  | 200 |  |  | 189 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 60 |  |  |  |  | 31 |  |  | 51 |
Renewable energy tax credits |  |  |  | (72) |  |  |  |  | (58) |  |  | (51) |
TCJA excess deferred taxes |  |  |  | (43) |  |  |  |  | (40) |  |  | (65) |
Deferred tax adjustment 2 |  |  |  | (16) |  |  |  |  | — |  |  | — |
Taxes attributable to noncontrolling interests |  |  |  | 12 |  |  |  |  | 17 |  |  | 5 |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | — |  |  | (39) |
Other, net |  |  |  | (1) |  |  |  |  | (3) |  |  | 3 |
Income tax expense |  |  |  | $ | 176 |  |  |  |  | $ | 147 |  |  | $ | 93 |
Effective tax rate |  |  |  | 15.7 | % |  |  |  | 15.4 | % |  | 10.3 | %
Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 1,209 |  |  |  |  | $ | 1,028 |  |  | $ | 1,085 |
Income tax expense at statutory rate |  |  |  | 254 |  |  |  |  | 216 |  |  | 228 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 59 |  |  |  |  | 36 |  |  | 59 |
Renewable energy tax credits |  |  |  | (54) |  |  |  |  | (46) |  |  | (46) |
TCJA excess deferred taxes |  |  |  | (43) |  |  |  |  | (40) |  |  | (65) |
Deferred tax adjustment 2 |  |  |  | (16) |  |  |  |  | — |  |  | — |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | — |  |  | (39) |
Other, net |  |  |  | — |  |  |  |  | (5) |  |  | 3 |
Income tax expense |  |  |  | $ | 200 |  |  |  |  | $ | 161 |  |  | $ | 140 |
Effective tax rate |  |  |  | 16.5 | % |  |  |  | 15.7 | % |  | 12.9 | %
1 CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, during 2023, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers. 2 During 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years. 3 In 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits were fully amortized in 2022.
Summary of Significant Components of Income Tax Expense | Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31 | 2024 | 2023 | 2022
CMS Energy, including Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 34 |  |  | $ | 5 |  |  | $ | 6 |
State and local |  | — |  |  | 1 |  |  | — |
|  | $ | 34 |  |  | $ | 6 |  |  | $ | 6 |
Deferred income taxes |  |  |  |  |  |
Federal |  | 70 |  |  | 107 |  |  | 4 |
State and local |  | 76 |  |  | 38 |  |  | 65 |
|  | $ | 146 |  |  | $ | 145 |  |  | $ | 69 |
Deferred income tax credit |  | (4) |  |  | (4) |  |  | 18 |
Tax expense |  | $ | 176 |  |  | $ | 147 |  |  | $ | 93 |
Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 78 |  |  | $ | 3 |  |  | $ | (2) |
State and local |  | 7 |  |  | 2 |  |  | 8 |
|  | $ | 85 |  |  | $ | 5 |  |  | $ | 6 |
Deferred income taxes |  |  |  |  |  |
Federal |  | 51 |  |  | 117 |  |  | 50 |
State and local |  | 68 |  |  | 43 |  |  | 66 |
|  | $ | 119 |  |  | $ | 160 |  |  | $ | 116 |
Deferred income tax credit |  | (4) |  |  | (4) |  |  | 18 |
Tax expense |  | $ | 200 |  |  | $ | 161 |  |  | $ | 140 |
Summary of Principal Components of Deferred Income Tax Assets and Liabilities | Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 31 | 2024 | 2023
CMS Energy, including Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Tax loss and credit carryforwards |  | $ | 258 |  |  | $ | 428 |
Net regulatory tax liability |  | 307 |  |  | 305 |
Reserves and accruals |  | 27 |  |  | 28 |
Total deferred income tax assets |  | $ | 592 |  |  | $ | 761 |
Valuation allowance |  | (1) |  |  | (2) |
Total deferred income tax assets, net of valuation allowance |  | $ | 591 |  |  | $ | 759 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,682) |  |  | $ | (2,520) |
Employee benefits |  | (507) |  |  | (473) |
Gas inventory |  | (38) |  |  | (66) |
Securitized costs |  | (167) |  |  | (194) |
Other |  | (122) |  |  | (121) |
Total deferred income tax liabilities |  | $ | (3,516) |  |  | $ | (3,374) |
Total net deferred income tax liabilities |  | $ | (2,925) |  |  | $ | (2,615) |
Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Net regulatory tax liability |  | $ | 307 |  |  | $ | 305 |
Tax loss and credit carryforwards |  | 37 |  |  | 175 |
Reserves and accruals |  | 24 |  |  | 27 |
Total deferred income tax assets |  | $ | 368 |  |  | $ | 507 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,658) |  |  | $ | (2,498) |
Employee benefits |  | (489) |  |  | (459) |
Gas inventory |  | (38) |  |  | (66) |
Securitized costs |  | (167) |  |  | (194) |
Other |  | (69) |  |  | (79) |
Total deferred income tax liabilities |  | $ | (3,421) |  |  | $ | (3,296) |
Total net deferred income tax liabilities |  | $ | (3,053) |  |  | $ | (2,789) |
Summary of Loss And Credit Carryforwards | Presented in the following table are the tax loss and credit carryforwards at December 31, 2024:
In Millions
|  | Tax Attribute | Expiration
CMS Energy, including Consumers |  |  |  |  |
Michigan net operating loss carryforwards |  |  |  | $ | 38 |  | 2030 – 2033
Arkansas net operating loss carryforwards |  |  |  | 2 |  | 2033 - 2034
Local net operating loss carryforwards |  |  |  | 2 |  | 2025 – 2040
General business credits 1 |  |  |  | 216 |  | 2038 – 2044
Total tax attributes |  |  |  | $ | 258 |  |
Consumers |  |  |  |  |
Michigan net operating loss carryforwards |  |  |  | $ | 29 |  | 2030 – 2033
General business credits 1 |  |  |  | 8 |  | 2038 – 2044
Total tax attributes |  |  |  | $ | 37 |  |
1 General business credits comprise research and development tax credits and renewable energy tax credits that are not expected to be transferred to third parties.
Schedule of Reconciliation of Uncertain Tax Benefits | Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31 | 2024 | 2023 | 2022
CMS Energy, including Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 26 |  |  | $ | 28 |  |  | $ | 27 |
Additions for current-year tax positions |  | 1 |  |  | 1 |  |  | 1 |
Additions for prior-year tax positions |  | 2 |  |  | — |  |  | 1 |
Reductions for prior-year tax positions |  | — |  |  | — |  |  | (1) |
Reductions for lapse of statute of limitations |  | (5) |  |  | (3) |  |  | — |
Balance at end of period |  | $ | 24 |  |  | $ | 26 |  |  | $ | 28 |
Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 36 |  |  | $ | 36 |  |  | $ | 34 |
Additions for current-year tax positions |  | 6 |  |  | 1 |  |  | 3 |
Additions for prior-year tax positions |  | 1 |  |  | 2 |  |  | 1 |
Reductions for prior-year tax positions |  | — |  |  | — |  |  | (2) |
Reductions for lapse of statute of limitations |  | (11) |  |  | (3) |  |  | — |
Balance at end of period |  | $ | 32 |  |  | $ | 36 |  |  | $ | 36 |
Consumers Energy Company |
Income Taxes [Line Items] |
Schedule of Effective Income Tax Rate Reconciliation | Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31 |  | 2024 |  | 2023 | 2022
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 1,123 |  |  |  |  | $ | 954 |  |  | $ | 902 |
Income tax expense at statutory rate |  |  |  | 236 |  |  |  |  | 200 |  |  | 189 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 60 |  |  |  |  | 31 |  |  | 51 |
Renewable energy tax credits |  |  |  | (72) |  |  |  |  | (58) |  |  | (51) |
TCJA excess deferred taxes |  |  |  | (43) |  |  |  |  | (40) |  |  | (65) |
Deferred tax adjustment 2 |  |  |  | (16) |  |  |  |  | — |  |  | — |
Taxes attributable to noncontrolling interests |  |  |  | 12 |  |  |  |  | 17 |  |  | 5 |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | — |  |  | (39) |
Other, net |  |  |  | (1) |  |  |  |  | (3) |  |  | 3 |
Income tax expense |  |  |  | $ | 176 |  |  |  |  | $ | 147 |  |  | $ | 93 |
Effective tax rate |  |  |  | 15.7 | % |  |  |  | 15.4 | % |  | 10.3 | %
Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 1,209 |  |  |  |  | $ | 1,028 |  |  | $ | 1,085 |
Income tax expense at statutory rate |  |  |  | 254 |  |  |  |  | 216 |  |  | 228 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 59 |  |  |  |  | 36 |  |  | 59 |
Renewable energy tax credits |  |  |  | (54) |  |  |  |  | (46) |  |  | (46) |
TCJA excess deferred taxes |  |  |  | (43) |  |  |  |  | (40) |  |  | (65) |
Deferred tax adjustment 2 |  |  |  | (16) |  |  |  |  | — |  |  | — |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | — |  |  | (39) |
Other, net |  |  |  | — |  |  |  |  | (5) |  |  | 3 |
Income tax expense |  |  |  | $ | 200 |  |  |  |  | $ | 161 |  |  | $ | 140 |
Effective tax rate |  |  |  | 16.5 | % |  |  |  | 15.7 | % |  | 12.9 | %
1 CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, during 2023, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers. 2 During 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years. 3 In 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits were fully amortized in 2022.
Summary of Significant Components of Income Tax Expense | Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31 | 2024 | 2023 | 2022
CMS Energy, including Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 34 |  |  | $ | 5 |  |  | $ | 6 |
State and local |  | — |  |  | 1 |  |  | — |
|  | $ | 34 |  |  | $ | 6 |  |  | $ | 6 |
Deferred income taxes |  |  |  |  |  |
Federal |  | 70 |  |  | 107 |  |  | 4 |
State and local |  | 76 |  |  | 38 |  |  | 65 |
|  | $ | 146 |  |  | $ | 145 |  |  | $ | 69 |
Deferred income tax credit |  | (4) |  |  | (4) |  |  | 18 |
Tax expense |  | $ | 176 |  |  | $ | 147 |  |  | $ | 93 |
Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 78 |  |  | $ | 3 |  |  | $ | (2) |
State and local |  | 7 |  |  | 2 |  |  | 8 |
|  | $ | 85 |  |  | $ | 5 |  |  | $ | 6 |
Deferred income taxes |  |  |  |  |  |
Federal |  | 51 |  |  | 117 |  |  | 50 |
State and local |  | 68 |  |  | 43 |  |  | 66 |
|  | $ | 119 |  |  | $ | 160 |  |  | $ | 116 |
Deferred income tax credit |  | (4) |  |  | (4) |  |  | 18 |
Tax expense |  | $ | 200 |  |  | $ | 161 |  |  | $ | 140 |
Summary of Principal Components of Deferred Income Tax Assets and Liabilities | Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 31 | 2024 | 2023
CMS Energy, including Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Tax loss and credit carryforwards |  | $ | 258 |  |  | $ | 428 |
Net regulatory tax liability |  | 307 |  |  | 305 |
Reserves and accruals |  | 27 |  |  | 28 |
Total deferred income tax assets |  | $ | 592 |  |  | $ | 761 |
Valuation allowance |  | (1) |  |  | (2) |
Total deferred income tax assets, net of valuation allowance |  | $ | 591 |  |  | $ | 759 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,682) |  |  | $ | (2,520) |
Employee benefits |  | (507) |  |  | (473) |
Gas inventory |  | (38) |  |  | (66) |
Securitized costs |  | (167) |  |  | (194) |
Other |  | (122) |  |  | (121) |
Total deferred income tax liabilities |  | $ | (3,516) |  |  | $ | (3,374) |
Total net deferred income tax liabilities |  | $ | (2,925) |  |  | $ | (2,615) |
Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Net regulatory tax liability |  | $ | 307 |  |  | $ | 305 |
Tax loss and credit carryforwards |  | 37 |  |  | 175 |
Reserves and accruals |  | 24 |  |  | 27 |
Total deferred income tax assets |  | $ | 368 |  |  | $ | 507 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,658) |  |  | $ | (2,498) |
Employee benefits |  | (489) |  |  | (459) |
Gas inventory |  | (38) |  |  | (66) |
Securitized costs |  | (167) |  |  | (194) |
Other |  | (69) |  |  | (79) |
Total deferred income tax liabilities |  | $ | (3,421) |  |  | $ | (3,296) |
Total net deferred income tax liabilities |  | $ | (3,053) |  |  | $ | (2,789) |
Summary of Loss And Credit Carryforwards | Presented in the following table are the tax loss and credit carryforwards at December 31, 2024:
In Millions
|  | Tax Attribute | Expiration
CMS Energy, including Consumers |  |  |  |  |
Michigan net operating loss carryforwards |  |  |  | $ | 38 |  | 2030 – 2033
Arkansas net operating loss carryforwards |  |  |  | 2 |  | 2033 - 2034
Local net operating loss carryforwards |  |  |  | 2 |  | 2025 – 2040
General business credits 1 |  |  |  | 216 |  | 2038 – 2044
Total tax attributes |  |  |  | $ | 258 |  |
Consumers |  |  |  |  |
Michigan net operating loss carryforwards |  |  |  | $ | 29 |  | 2030 – 2033
General business credits 1 |  |  |  | 8 |  | 2038 – 2044
Total tax attributes |  |  |  | $ | 37 |  |
1 General business credits comprise research and development tax credits and renewable energy tax credits that are not expected to be transferred to third parties.
Schedule of Reconciliation of Uncertain Tax Benefits | Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31 | 2024 | 2023 | 2022
CMS Energy, including Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 26 |  |  | $ | 28 |  |  | $ | 27 |
Additions for current-year tax positions |  | 1 |  |  | 1 |  |  | 1 |
Additions for prior-year tax positions |  | 2 |  |  | — |  |  | 1 |
Reductions for prior-year tax positions |  | — |  |  | — |  |  | (1) |
Reductions for lapse of statute of limitations |  | (5) |  |  | (3) |  |  | — |
Balance at end of period |  | $ | 24 |  |  | $ | 26 |  |  | $ | 28 |
Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 36 |  |  | $ | 36 |  |  | $ | 34 |
Additions for current-year tax positions |  | 6 |  |  | 1 |  |  | 3 |
Additions for prior-year tax positions |  | 1 |  |  | 2 |  |  | 1 |
Reductions for prior-year tax positions |  | — |  |  | — |  |  | (2) |
Reductions for lapse of statute of limitations |  | (11) |  |  | (3) |  |  | — |
Balance at end of period |  | $ | 32 |  |  | $ | 36 |  |  | $ | 36 |

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