Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

IRA

The IRA was enacted in August 2022, and includes various income tax provisions, among other things. The law extends federal production and investment tax credits for projects beginning construction through 2024 and allows for a 10% adder to the production and investment tax credits for siting projects at existing energy communities as defined in the law, which includes sites previously used for coal-fired generation. The law also creates clean energy tax credits for projects placed in service after 2024. The clean energy tax credits will apply to renewable energy production and investments, along with certain nuclear energy production, and will be phased out beginning in 2033, at the earliest. The phase-out is triggered when greenhouse gas emissions from the electric generation industry are reduced by at least 75% from the annual 2022 emission rate or at the beginning of 2033, whichever is later. The law allows for transferability to an unrelated party for cash of up to 100% of certain tax credits generated after 2022. In addition, the new law imposes a 15% minimum tax on adjusted financial statement income, as defined in the law, for corporations whose average annual adjusted financial statement income exceeds $1 billion for three consecutive preceding tax years effective for tax years beginning after December 31, 2022. Once a corporation exceeds this three-year average annual adjusted financial statement income threshold, it will be subject to the minimum tax for all future tax years. Additional regulations, interpretations, amendments, or technical corrections to or in connection with the IRA have been and are expected to be issued by the IRS or United States Department of Treasury, which may impact the timing of when the 15% minimum tax becomes applicable for Ameren.

The following table presents the principal reasons for the difference between the effective income tax rate and the federal statutory corporate income tax rate for the years ended December 31, 2023, 2022, and 2021:

	Ameren Missouri		Ameren Illinois		Ameren
2023
Federal statutory corporate income tax rate	21	%	21	%	21	%
Increases (decreases) from:
Amortization of excess deferred income taxes(a)	(15)		(2)		(8)
Amortization of deferred investment tax credit	(1)		—		—
Production and other tax credits(b)	(10)		—		(4)
State tax	3		7		5
Effective income tax rate	(2)	%	26	%	14	%
2022
Federal statutory corporate income tax rate	21	%	21	%	21	%
Increases (decreases) from:
Amortization of excess deferred income taxes(a)	(15)		(2)		(8)
Amortization of deferred investment tax credit	(1)		—		—
Production and other tax credits(b)	(10)		—		(4)
State tax	3		7		5
Effective income tax rate	(2)	%	26	%	14	%
2021
Federal statutory corporate income tax rate	21	%	21	%	21	%
Increases (decreases) from:
Amortization of excess deferred income taxes(a)	(15)		(3)		(8)
Amortization of deferred investment tax credit	(1)		—		—
Production and other tax credits(b)	(7)		—		(3)
State tax	3		7		5
Stock-based compensation	—		—		(1)
Effective income tax rate	1	%	25	%	14	%

(a)Reflects the amortization of amounts resulting from the revaluation of deferred income taxes subject to regulatory ratemaking, which are being refunded to customers. Deferred income taxes are revalued when federal or state income tax rates change, and the offset to the revaluation of deferred income taxes subject to regulatory ratemaking is recorded to a regulatory asset or liability.

(b)The benefit of the credits associated with Missouri renewable energy standard compliance is refunded to customers through the RESRAM.

The following table presents the components of income tax expense (benefit) for the years ended December 31, 2023, 2022, and 2021:

	Ameren Missouri		Ameren Illinois		Other		Ameren
2023
Current taxes:
Federal	$	(37)	$	27	$	(37)	$	(47)
State	1		5		(5)		1
Deferred taxes:
Federal	102		123		35		260
State	9		71		(10)		70
Amortization of excess deferred income taxes	(80)		(17)		(1)		(98)
Amortization of deferred investment tax credits	(3)		—		—		(3)
Total income tax expense (benefit)	$	(8)	$	209	$	(18)	$	183
2022
Current taxes:
Federal	$	(26)	$	46	$	(15)	$	5
State	(5)		16		(10)		1
Deferred taxes:
Federal	93		82		19		194
State	18		48		14		80
Amortization of excess deferred income taxes	(86)		(13)		(1)		(100)
Amortization of deferred investment tax credits	(4)		—		—		(4)
Total income tax expense (benefit)	$	(10)	$	179	$	7	$	176
2021
Current taxes:
Federal	$	—	$	(15)	$	22	$	7
State	—		(7)		1		(6)
Deferred taxes:
Federal	65		120		(15)		170
State	23		59		4		86
Amortization of excess deferred income taxes	(81)		(14)		(1)		(96)
Amortization of deferred investment tax credits	(4)		—		—		(4)
Total income tax expense	$	3	$	143	$	11	$	157

The following table presents the accumulated deferred income tax assets and liabilities recorded as a result of temporary differences and accumulated deferred investment tax credits at December 31, 2023 and 2022:

	Ameren Missouri		Ameren Illinois		Other		Ameren
2023
Accumulated deferred income taxes, net liability (asset):
Plant-related	$	2,370	$	2,030	$	246	$	4,646
Regulatory assets and liabilities, net	(206)		(184)		(23)		(413)
Deferred employee benefit costs	(48)		55		(33)		(26)
Tax carryforwards	(124)		(33)		(61)		(218)
Other	104		38		19		161
Total net accumulated deferred income tax liabilities (assets)	2,096		1,906		148		4,150
Accumulated deferred investment tax credits	26		—		—		26
Accumulated deferred income taxes and investment tax credits	$	2,122	$	1,906	$	148	$	4,176
2022
Accumulated deferred income taxes, net liability (asset):
Plant-related	$	2,297	$	1,880	$	239	$	4,416
Regulatory assets and liabilities, net	(233)		(193)		(23)		(449)
Deferred employee benefit costs	(55)		28		(43)		(70)
Tax carryforwards	(122)		(34)		(72)		(228)
Other	70		18		22		110
Total net accumulated deferred income tax liabilities (assets)	1,957		1,699		123		3,779
Accumulated deferred investment tax credits	25		—		—		25
Accumulated deferred income taxes and investment tax credits	$	1,982	$	1,699	$	123	$	3,804

The following table presents the components of accumulated deferred income tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2023 and 2022:

	Ameren Missouri		Ameren Illinois		Other		Ameren
2023
Net operating loss carryforwards:
State(a)	$	—	$	26	$	16	$	42
Total net operating loss carryforwards	$	—	$	26	$	16	$	42
Tax credit carryforwards:
Federal(b)	$	124	$	5	$	45	$	174
State(c)	—		2		—		2
Total tax credit carryforwards	$	124	$	7	$	45	$	176
2022
Net operating loss carryforwards:
Federal	$	3	$	4	$	4	$	11
State	1		26		9		36
Total net operating loss carryforwards	$	4	$	30	$	13	$	47
Tax credit carryforwards:
Federal	$	118	$	3	$	55	$	176
State	—		1		4		5
Total tax credit carryforwards	$	118	$	4	$	59	$	181

(a)Will expire between 2032 and 2043.

(b)Will expire between 2030 and 2043.

(c)Will expire between 2025 and 2028.

Uncertain Tax Positions

As of December 31, 2023 and 2022, the Ameren Companies did not record any uncertain tax positions.

Ameren is a part of the IRS’s compliance assurance process program, which involves real-time review of compliance with federal income tax law. State income tax returns are generally subject to examination for a period of three years after filing. The state impact of any federal changes remains subject to examination by various states for up to one year after formal notification to the states. Ameren’s federal tax returns for the 2020, 2021, and 2022 tax years are open, but, at the time of this filing, the Ameren Companies do not have material income tax issues under examination, administrative appeals, or litigation.