XML 27 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The reconciliation of the statutory federal income tax rate to our effective tax rate for each of the three and nine months ended September 30, 2021 and 2020 is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Federal Statutory Rate21.0 %21.0 %21.0 %21.0 %
Increases (Decreases) in Tax from:
State Taxes on Income, Net of Federal Tax5.0 5.0 5.0 5.0 
Production Tax Credits (PTCs)(5.0)— (6.0)— 
Amortization of Excess Deferred Income Taxes(1.6)(2.9)(2.0)(3.4)
North Dakota Wind Tax Credit Amortization, Net of Federal Tax(0.2)(0.6)(0.3)(0.8)
Excess Tax Deduction on Stock Awards— 0.3 — (0.4)
Allowance for Equity Funds Used During Construction(0.1)(0.7)(0.1)(0.8)
Other, Net(0.8)(1.9)(0.7)(1.2)
Effective Tax Rate18.3 %20.2 %16.9 %19.4 %
We began generating PTCs from our Merricourt wind farm placed in service in the fourth quarter of 2020. No PTCs were generated during the nine months ended September 30, 2020. Income tax benefits arising from PTCs are offset by corresponding operating revenue reductions.