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Income Tax Expense | 6 Months Ended
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Jun. 30, 2016
Income Tax Disclosure [Abstract] |
Income Tax Expense [Text Block] | INCOME TAX EXPENSE
|  | Quarter Ended |  | Six Months Ended
|  | June 30, |  | June 30,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Millions |  |  |  |  |  |  |  |
Current Tax Expense (a) |  |  |  |  |  |  |  |
Federal |  | — |  |  | — |  |  | — |  |  | — |
State |  |  | $0.1 |  |  | $0.2 |  |  | $0.2 |  |  | $0.3
Total Current Tax Expense |  |  | $0.1 |  |  | $0.2 |  |  | $0.2 |  |  | $0.3
Deferred Tax Expense |  |  |  |  |  |  |  |
Federal |  | $2.1 |  |  | $3.9 |  |  | $6.7 |  |  | $8.7 |
State |  | 2.7 |  |  | 2.5 |  |  | 7.5 |  |  | 4.0 |
Investment Tax Credit Amortization |  | (0.2 | ) |  | (0.2 | ) |  | (0.4 | ) |  | (0.4 | )
Total Deferred Tax Expense |  | $4.6 |  |  | $6.2 |  |  | $13.8 |  |  | $12.3 |
Total Income Tax Expense |  | $4.7 |  |  | $6.4 |  |  | $14.0 |  |  | $12.6 |
(a) | For the six months ended June 30, 2016 and 2015, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of the Protecting Americans from Tax Hikes Act of 2015, the Tax Increase Prevention Act of 2014 and the American Taxpayer Relief Act of 2012.
The Company's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company would make a cumulative adjustment in that quarter.
Reconciliation of Taxes from Federal Statutory |  |
Rate to Total Income Tax Expense |  |
Six Months Ended June 30 | 2016 |  | 2015 |
Millions |  |
Income Before Non-Controlling Interest and Income Taxes |  | $85.2 |  |  | $75.0 |
Statutory Federal Income Tax Rate | 35 | % | 35 | %
Income Taxes Computed at 35 percent Statutory Federal Rate |  | $29.8 |  |  | $26.3 |
Increase (Decrease) in Tax Due to: |  |
State Income Taxes – Net of Federal Income Tax Benefit | 5.0 |  | 2.8 |
Production Tax Credits | (20.5 | ) | (20.8 | )
Regulatory Differences for Utility Plant | (0.1 | ) | (0.4 | )
Other | (0.2 | ) | 4.7 |
Total Income Tax Expense |  | $14.0 |  |  | $12.6 |
For the six months ended June 30, 2016, the effective tax rate was 16.4 percent (16.8 percent for the six months ended June 30, 2015). Uncertain Tax Positions. As of June 30, 2016, we had gross unrecognized tax benefits of $2.2 million ($2.4 million as of December 31, 2015). Of the total gross unrecognized tax benefits, $0.5 million represents the amount of unrecognized tax benefits included on the Consolidated Balance Sheet that, if recognized, would favorably impact the effective income tax rate. The unrecognized tax benefit amounts have been presented as reductions to the tax benefits associated with NOL and tax credit carryforwards on the Consolidated Balance Sheet. ALLETE and its subsidiaries file a consolidated federal income tax return as well as combined and separate state income tax returns in various jurisdictions. ALLETE is no longer subject to federal or state examination for years before 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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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 3: 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 4: 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 5: 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 + Details
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