XML 34 R21.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate
The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:
Three months ended September 30,Nine months ended September 30,
(in millions)2025202420252024
Edison International:
Income from operations before income taxes$1,063 $645 $3,387 $1,152 
Provision for income tax at federal statutory rate of 21%
223 136 711 242 
Increase (decrease) in income tax from:
State tax, net of federal tax effect43 12 134 (18)
Property-related(72)(78)(198)(195)
Other(19)(2)(38)(15)
Total income tax expense$175 $68 $609 $14 
Effective tax rate16.5%10.5%18.0%1.2%
SCE:
Income from operations before income taxes$1,162 $736 $3,741 $1,413 
Provision for income tax at federal statutory rate of 21%
244 155 786 297 
Increase (decrease) in income tax from:
State tax, net of federal tax effect50 18 156 — 
Property-related(72)(78)(198)(195)
Other(19)— (39)(8)
Total income tax expense$203 $95 $705 $94 
Effective tax rate17.5%12.9%18.8%6.7%
The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirement in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11.
Under the IRA, SCE generated investment tax credits of approximately $231 million in 2024 related to utility owned storage projects and $29 million in nuclear production tax credits. In the third quarter of 2025, SCE monetized the majority of these credits for $236 million. SCE expects to pass the proceeds, net of transaction fees, back to customers.
Tax Disputes
The tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2021 – 2023, and 2013 – 2018 & 2020 – 2023, respectively.