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Income Tax Expense (Tables) | 9 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Income Tax Expense |
|  | Quarter Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Millions |  |  |  |  |  |  |  |
Current Income Tax Expense (a) |  |  |  |  |  |  |  |
Federal |  | $4.0 |  | — |  | $12.6 |  | —
State |  | 1.1 |  | $0.2 |  | 6.5 |  | $0.3
Total Current Income Tax Expense |  | $5.1 |  | $0.2 |  | $19.1 |  | $0.3
Deferred Income Tax Expense (Benefit) |  |  |  |  |  |  |  |
Federal (b) |  | $5.2 |  | $(8.4) |  | $(10.9) |  | $(20.7)
State |  | 9.1 |  | 1.1 |  | 12.5 |  | 1.4
Investment Tax Credit Amortization |  | (0.1) |  | (0.1) |  | (0.3) |  | (0.4)
Total Deferred Income Tax Expense (Benefit) |  | $14.2 |  | $(7.4) |  | $1.3 |  | $(19.7)
Total Income Tax Expense (Benefit) |  | $19.3 |  | $(7.2) |  | $20.4 |  | $(19.4)
(a)For the quarter and nine months ended September 30, 2023, the federal current tax expense was partially offset by production tax credits. For the quarter and nine months ended September 30, 2022, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of certain tax legislation. (b)For the quarter ended September 30, 2023, the federal deferred tax expense was due to higher pre-tax income at ALLETE Clean Energy, partially offset by production tax credits. For the nine months ended September 30, 2023 and 2022, and the quarter ended September 30, 2022, the federal deferred income tax benefit is primarily due to production tax credits.
Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense | 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.
| Quarter Ended | Nine Months Ended
Reconciliation of Taxes from Federal Statutory | September 30, | September 30,
Rate to Total Income Tax Expense | 2023 |  | 2022 | 2023 |  | 2022
Millions |  |  |  |  |  |
Income Before Income Taxes | $88.9 |  |  | $19.6 |  | $168.3 |  |  | $74.7 |
Statutory Federal Income Tax Rate | 21 | % |  | 21 | % | 21 | % |  | 21 | %
Income Taxes Computed at Statutory Federal Rate | $18.7 |  |  | $4.1 |  | $35.3 |  |  | $15.7 |
Increase (Decrease) in Income Tax Due to: |  |  |  |  |  |
State Income Taxes – Net of Federal Income Tax Benefit | 8.0 |  |  | 1.1 |  | 15.0 |  |  | 6.6 |
Deferred Revaluation – Net of Federal Income Tax Benefit | — |  |  | — |  | — |  |  | (5.2) |
Production Tax Credits (a) | (7.7) |  |  | (9.7) |  | (28.3) |  |  | (34.4) |
Investment Tax Credits (a) | (1.6) |  |  | (3.2) |  | (5.2) |  |  | (3.2) |
Regulatory Differences – Excess Deferred Tax | (2.3) |  |  | (1.5) |  | (7.5) |  |  | (6.7) |
Non-Controlling Interest in Subsidiaries | 3.0 |  |  | 1.4 |  | 8.9 |  |  | 8.4 |
Other | 1.2 |  |  | 0.6 |  | 2.2 |  |  | (0.6) |
Total Income Tax Expense (Benefit) | $19.3 |  | $(7.2) | $20.4 |  |  | $(19.4)
(a)For the quarter and nine months ended September 30, 2023, the credits are presented net of any estimated discount on the sale of certain credits.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
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