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Income Tax
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
Con Edison’s income tax expense was $242 million and $184 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

CECONY’s income tax expense was $227 million and $181 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended March 31, 2025 and 2024 is as follows:
For the Three Months Ended March 31,
Con EdisonCECONY
2025202420252024
(Millions of Dollars) (% of Pre-tax income)$%$%$%$%
STATUTORY TAX RATE
Federal$21721.0 %$19021.0 %$20421.0 %$18421.0 %
Changes in computed taxes resulting from:
State income tax, net of federal income taxes555.4 475.2 515.3 455.2 
     MTA Surcredit amortization, net of federal taxes
(13)(1.3)—— (12)(1.3)—— 
Tax Credits (R&D and renewable energy tax credits)
(4)(0.4)(6)(0.7)(3)(0.3)(3)(0.4)
Amortization of excess deferred federal income taxes(12)(1.1)(50)(5.6)(10)(1.0)(49)(5.6)
Allowance for uncollectible accounts, net of COVID-19 assistance(13)(1.2)(5)(0.6)(13)(1.3)(5)(0.6)
Cost of removal111.0 111.3 101.0 111.2 
   Other10.1 (3)(0.3)—— (2)(0.2)
Effective tax rate$24223.5 %$18420.3 %$22723.4 %$18120.6 %


Corporate Alternative Minimum Tax
On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposed a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.

Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. The Companies’ CAMT liability did not exceed their regular tax liability for the three months ended March 31, 2025 and 2024. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

Uncertain Tax Positions
Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.

At March 31, 2025, the estimated uncertain tax positions for Con Edison were $10 million ($6 million of which is for CECONY). For the three months ended March 31, 2025, Con Edison recognized $1 million of income tax expense related to current year positions, all of which were attributed to CECONY. The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $10 million ($9 million, net of federal taxes) with $6 million attributable to CECONY.

The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the three months ended March 31, 2025 and 2024, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At March 31, 2025 and December 31, 2024, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.