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Income Tax Expense | 3 Months Ended
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Mar. 31, 2019
Income Tax Disclosure [Abstract] |
Income Tax Expense [Text Block] | INCOME TAX EXPENSE
| Three Months Ended
| March 31,
| 2019 |  | 2018
Millions |  |  |
Current Income Tax Expense (a) |  |  |
Federal | — |  |  | — |
State |  | $0.3 |  |  |  | $0.7 |
Total Current Income Tax Expense |  | $0.3 |  |  |  | $0.7 |
Deferred Income Tax Expense (Benefit) |  |  |
Federal (b) | $(9.7) |  | $(6.8)
State (c) | 12.5 |  |  | 2.6 |
Investment Tax Credit Amortization | (0.2 | ) |  | (0.2 | )
Total Deferred Income Tax Expense (Benefit) | $2.6 |  | $(4.4)
Total Income Tax Expense (Benefit) | $2.9 |  | $(3.7)
(a) | For each of the three months ended March 31, 2019, and 2018, 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. Federal and state NOLs are being carried forward to offset current and future taxable income.
(b) | For each of the three months ended March 31, 2019, and 2018, the federal income tax benefit is primarily due to production tax credits.
(c) | For the three months ended March 31, 2019, the state income tax expense is primarily due to the sale of U.S. Water Services.
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. NOTE 9. INCOME TAX EXPENSE (Continued)
| Three Months Ended
Reconciliation of Taxes from Federal Statutory | March 31,
Rate to Total Income Tax Expense | 2019 |  | 2018
Millions |  |  |
Income Before Income Taxes |  | $73.4 |  |  |  | $47.3 |
Statutory Federal Income Tax Rate | 21 | % |  | 21 | %
Income Taxes Computed at Statutory Federal Rate |  | $15.4 |  |  |  | $9.9 |
Increase (Decrease) in Income Tax Due to: |  |  |
State Income Taxes – Net of Federal Income Tax Benefit | 10.1 |  |  | 2.6 |
Production Tax Credits | (16.3 | ) |  | (14.4 | )
Regulatory Differences – Excess Deferred Tax | (3.2 | ) |  | (2.2 | )
U.S. Water Services Sale of Stock Basis Difference | 2.4 |  |  | — |
Share-Based Compensation | (0.9 | ) |  | (0.5 | )
Other | (4.6 | ) |  | 0.9 |
Total Income Tax Expense (Benefit) | $2.9 |  | $(3.7)
For the three months ended March 31, 2019, the effective tax rate was an expense of 4.0 percent (benefit of 7.8 percent for the three months ended March 31, 2018). The effective tax rate included income tax expense of $10.2 million on the sale of U.S. Water Services. Uncertain Tax Positions. As of March 31, 2019, we had gross unrecognized tax benefits of $1.3 million ($1.6 million as of December 31, 2018). Of the total gross unrecognized tax benefits, $0.6 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 has no open federal or state audits, and is no longer subject to federal examination for years before 2015, or state examination for years before 2014.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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