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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Components of income taxes attributable to net income for common stock | The components of income taxes attributable to net income for common stock were as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
Years ended December 31 | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
(in thousands) |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |
Current | $ | 51,455 |  |  | $ | 23,207 |  |  | $ | 28,736 |  |  | $ | 42,794 |  |  | $ | 31,950 |  |  | $ | 21,751 |
Deferred | (11,689) |  |  | (4,215) |  |  | (4,353) |  |  | (12,109) |  |  | (5,408) |  |  | (7,793) |
Deferred tax credits, net* | 4,611 |  |  | 10,979 |  |  | 13,410 |  |  | 302 |  |  | 1,549 |  |  | 13,155 |
| 44,377 |  |  | 29,971 |  |  | 37,793 |  |  | 30,987 |  |  | 28,091 |  |  | 27,113 |
State |  |  |  |  |  |  |  |  |  |  |
Current | 12,119 |  |  | 8,430 |  |  | 10,472 |  |  | 4,861 |  |  | 3,768 |  |  | 5,579 |
Deferred | 6,290 |  |  | 2,509 |  |  | (10,732) |  |  | 8,279 |  |  | 8,559 |  |  | (8,491) |
Deferred tax credits, net* | 21 |  |  | — |  |  | 14,104 |  |  | 21 |  |  | — |  |  | 14,104 |
| 18,430 |  |  | 10,939 |  |  | 13,844 |  |  | 13,161 |  |  | 12,327 |  |  | 11,192 |
Total | $ | 62,807 |  |  | $ | 40,910 |  |  | $ | 51,637 |  |  | $ | 44,148 |  |  | $ | 40,418 |  |  | $ | 38,305 |
* In 2021 and 2020, primarily represents federal tax credits related to Mauo’s solar-plus-storage project, deferred and amortized starting in 2021 and 2020, respectively. In 2019, primarily represents federal and state credits related to Hawaiian Electric’s West Loch PV project, deferred and amortized starting in 2020.
Schedule of reconciliation of amount of income taxes computed at federal statutory rate | A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
Years ended December 31 | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
(in thousands) |  |  |  |  |  |  |  |  |  |  |
Amount at the federal statutory income tax rate | $ | 65,281 |  |  | $ | 50,531 |  |  | $ | 56,996 |  |  | $ | 46,995 |  |  | $ | 44,468 |  |  | $ | 41,399 |
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 15,735 |  |  | 9,448 |  |  | 11,658 |  |  | 10,323 |  |  | 9,658 |  |  | 8,703 |
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,886) |  |  | (11,267) |  |  | (9,255) |  |  | (9,886) |  |  | (11,267) |  |  | (9,255) |
Other, net | (8,323) |  |  | (7,802) |  |  | (7,762) |  |  | (3,284) |  |  | (2,441) |  |  | (2,542) |
Total | $ | 62,807 |  |  | $ | 40,910 |  |  | $ | 51,637 |  |  | $ | 44,148 |  |  | $ | 40,418 |  |  | $ | 38,305 |
Effective income tax rate | 20.2 | % |  | 17.0 | % |  | 19.0 | % |  | 19.7 | % |  | 19.1 | % |  | 19.4 | %
Schedule of deferred tax assets and liabilities | The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
December 31 | 2021 |  | 2020 |  | 2021 |  | 2020
(in thousands) |  |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  |  |
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | $ | 87,817 |  |  | $ | 93,684 |  |  | $ | 87,817 |  |  | $ | 93,684 |
Operating lease liabilities | 35,449 |  |  | 41,582 |  |  | 29,661 |  |  | 34,586 |
Revenue taxes | 35,040 |  |  | 22,726 |  |  | 35,040 |  |  | 22,726 |
Allowance for bad debts | 26,217 |  |  | 31,973 |  |  | 7,156 |  |  | 4,835 |
Other 1 | 58,518 |  |  | 44,127 |  |  | 20,529 |  |  | 24,741 |
Total deferred tax assets | 243,041 |  |  | 234,092 |  |  | 180,203 |  |  | 180,572 |
Deferred tax liabilities |  |  |  |  |  |  |
Property, plant and equipment related | 500,659 |  |  | 487,209 |  |  | 490,713 |  |  | 473,734 |
Operating lease right-of-use assets | 35,271 |  |  | 41,370 |  |  | 29,661 |  |  | 34,586 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 23,700 |  |  | 25,841 |  |  | 23,700 |  |  | 25,841 |
Retirement benefits | 6,863 |  |  | 18,407 |  |  | 8,261 |  |  | 20,537 |
Other | 61,308 |  |  | 56,354 |  |  | 36,502 |  |  | 23,672 |
Total deferred tax liabilities | 627,801 |  |  | 629,181 |  |  | 588,837 |  |  | 578,370 |
Net deferred income tax liability | $ | 384,760 |  |  | $ | 395,089 |  |  | $ | 408,634 |  |  | $ | 397,798 |
1 As of December 31, 2021, HEI consolidated and Hawaiian Electric consolidated have deferred tax assets of $11.0 million and $2.5 million respectively, relating to the benefit of state tax credit carryforwards of $14.6 million and $3.4 million respectively. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2021, a valuation allowance is not required.
Schedule of changes in total unrecognized tax benefits | The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2021, 2020 and 2019.
| HEI consolidated |  | Hawaiian Electric consolidated
(in millions) | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
Unrecognized tax benefits, January 1 | $ | 12.7 |  |  | $ | 2.2 |  |  | $ | 2.1 |  |  | $ | 12.7 |  |  | $ | 1.7 |  |  | $ | 1.6 |
Additions based on tax positions taken during the year | 2.8 |  |  | 0.2 |  |  | 0.5 |  |  | 0.3 |  |  | 0.2 |  |  | 0.5 |
Reductions based on tax positions taken during the year | (0.5) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Additions for tax positions of prior years | 7.6 |  |  | 11.6 |  |  | 0.1 |  |  | 0.2 |  |  | 11.6 |  |  | 0.1 |
Reductions for tax positions of prior years | (5.5) |  |  | (0.1) |  |  | (0.2) |  |  | (1.6) |  |  | (0.1) |  |  | (0.2) |
Lapses of statute of limitations | — |  |  | (0.2) |  |  | (0.3) |  |  | — |  |  | (0.2) |  |  | (0.3) |
Settlement | — |  |  | (1.0) |  |  | — |  |  | — |  |  | (0.5) |  |  | — |
Unrecognized tax benefits, December 31 | $ | 17.1 |  |  | $ | 12.7 |  |  | $ | 2.2 |  |  | $ | 11.6 |  |  | $ | 12.7 |  |  | $ | 1.7 |

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