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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Inflation Reduction Act
In August 2022, the IRA was signed into law. Among other provisions, the IRA implemented a new 15% corporate alternative minimum tax based on GAAP net income, with certain adjustments as defined by the IRA, and clean energy-related provisions. The IRA's clean energy provisions included, among other provisions, the extension and modification of existing investment and PTCs for projects placed in service through 2024 and introduced new technology-neutral clean energy-related credits beginning in 2025. In addition, the IRA created a new, zero-emission nuclear power PTC and a clean hydrogen PTC.
For the year ended December 31, 2024, Duke Energy Carolinas and Duke Energy Progress have recorded nuclear PTCs of approximately $449 million and $73 million, respectively. These amounts represent the estimated net realizable value of the PTCs, which were deferred to a regulatory liability. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available. The Subsidiary Registrants are working with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. In 2024, net proceeds of $558 million was received related to the sale of tax credits, which includes primarily $428 million of nuclear power PTCs at Duke Energy Carolinas, $65 million of nuclear power PTCs at Duke Energy Progress, and $43 million of solar PTCs at Duke Energy Florida. See Note 4 for further details on the IRA as it relates to Duke Energy Florida and Duke Energy Carolinas' approval for a stand-alone rider starting January 1, 2025.
Income Tax Expense
Components of Income Tax Expense
Tax benefit from discontinued operations, in the following tables, includes income tax benefits related to the Commercial Renewables Disposal Groups. See Note 2 for further details.
 Year Ended December 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes
Federal
$(365)$178 $359 $373 $14 $52 $70 $40 
State 31 75 34 40 (12)3 12 (6)
Foreign 2 — — — — — — — 
Total current income taxes (332)253 393 413 2 55 82 34 
Deferred income taxes       
Federal 858 10 (22)(215)181 8 (19)40 
State 81 (25)59 (6)86 1 8 21 
Total deferred income taxes(a)
939 (15)37 (221)267 9 (11)61 
ITC amortization (17)(12)(4)(3)(1)— — — 
Income tax expense from continuing operations 590 226 426 189 268 64 71 95 
Tax benefit from discontinued operations (50)— — — — — — — 
Total income tax expense included in Consolidated Statements of Operations
$540 $226 $426 $189 $268 $64 $71 $95 
(a)     Total deferred income taxes include the utilization of NOL carryforwards and tax credit carryforwards of $523 million at Duke Energy and $8 million at Duke Energy Indiana. In addition, total deferred income taxes include the generation of NOL carryforwards and tax credit carryforwards of $47 million at Duke Energy Carolinas, $85 million at Progress Energy, $66 million at Duke Energy Progress, $30 million at Duke Energy Florida, $26 million at Duke Energy Ohio, and $8 million at Piedmont.
    
 Year Ended December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes        
Federal(b)
$71 $173 $459 $198 $279 $(46)$10 $44 
State 1 22 38 4 71 (3)9 3 
Foreign 3 — — — — — — — 
Total current income taxes 75 195 497 202 350 (49)19 47 
Deferred income taxes
Federal 319 (43)(154)(69)(89)111 77 25 
State 53 (7)38 19 — 1 14 12 
Total deferred income taxes(a)
372 (50)(116)(50)(89)112 91 37 
ITC amortization (9)(4)(4)(3)— — — — 
Income tax expense from continuing operations 438 141 377 149 261 63 110 84 
Tax benefit from discontinued operations (359)— — — — — — — 
Total income tax expense included in Consolidated Statements of Operations
$79 $141 $377 $149 $261 $63 $110 $84 
(a)    Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $214 million at Duke Energy and $54 million at Duke Energy Indiana. In addition, total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $2 million at Duke Energy Carolinas, $116 million at Progress Energy, $59 million at Duke Energy Progress, $5 million at Duke Energy Florida, $22 million at Duke Energy Ohio, and $15 million at Piedmont.
(b)    Total current federal income tax at Duke Energy includes corporate alternative minimum tax, net of tax credit utilization, of $69 million. In addition, under the IRA transferability provision, Progress Energy elected to sell $28 million of PTCs generated by Duke Energy Florida.
 Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes        
Federal $1 $(71)$(13)$37 $(37)$(2)$38 $32 
State (8)(13)(3)— (23)1 2 2 
Foreign 4 — — — — — — — 
Total current income taxes (3)(84)(16)37 (60)(1)40 34 
Deferred income taxes
Federal 328 230 310 118 201 (22)(63)12 
State (14)(16)59 7 84 3 — (7)
Total deferred income taxes(a)
314 214 369 125 285 (19)(63)5 
ITC amortization (11)(4)(5)(4)— (1)(1)— 
Income tax expense (benefit) from continuing operations
300 126 348 158 225 (21)(24)39 
Tax benefit from discontinued operations (503)— — — — — — — 
Total income tax (benefit) expense included in Consolidated Statements of Operations
$(203)$126 $348 $158 $225 $(21)$(24)$39 
(a)    Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $550 million at Duke Energy, $97 million at Duke Energy Carolinas, $128 million at Progress Energy, $9 million at Duke Energy Progress, $111 million at Duke Energy Florida, $7 million at Duke Energy Ohio, $13 million at Duke Energy Indiana, and $12 million at Piedmont.    
Duke Energy Income from Continuing Operations before Income Taxes
 Years Ended December 31,
(in millions)202420232022
Domestic$5,145 $4,700 $3,991 
Foreign49 67 87 
Income from continuing operations before income taxes$5,194 $4,767 $4,078 
Statutory Rate Reconciliation
The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.
 Year Ended December 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$1,090$443$545$284$279$85$108$107
State income tax, net of federal income tax effect8840 73275831612
Amortization of EDIT
(436)(225)(121)(98)(23)(23)(49)(18)
AFUDC equity income(48)(24)(16)(13)(3)(1)(3)(4)
AFUDC equity depreciation3819147724—
Production tax credits
(46)—(46)—(46)———
Other tax credits
(43)(23)(16)(12)(4)(1)(2)(2)
Other items, net(53)(4)(7)(6)—(1)(3)—
Income tax expense from continuing operations$590 $226 $426 $189 $268 $64 $71 $95 
Effective tax rate11.4 %10.7 %16.4 %14.0 %20.2 %15.8 %13.9 %18.7 %
 Year Ended December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$1,001$338$490$241$268$83$128$97
State income tax, net of federal income tax effect4312 601856(2)1812
Amortization of EDIT
(388)(197)(114)(91)(23)(22)(33)(20)
AFUDC equity income(41)(19)(14)(11)(3)(2)(2)(4)
AFUDC equity depreciation3718136724—
Tax credits(b)
(63)(11)(46)(7)(39)(2)(2)(1)
Interest on company-owned life insurance(a)
(114)———————
Other items, net(37)—(12)(7)(5)6(3)—
Income tax expense from continuing operations
$438 $141 $377 $149 $261 $63 $110 $84 
Effective tax rate9.2 %8.8 %16.2 %13.0 %20.4 %15.9 %18.1 %18.1 %
(a)     During 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable federal adjustment of approximately $114 million and a favorable state adjustment of approximately $6 million. The favorable state adjustment is included in State income tax, net of federal income tax effect, in the above table.
(b)    Tax credits at Progress Energy and Duke Energy Florida include $28 million of certain eligible PTCs, net of discount, that were elected to be sold in 2023 under the transferability provisions of the IRA.
 Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$856 $362 $457 $245 $238 $59 $24 $76 
State income tax, net of federal income tax effect(17)(23)44 6 48 3 2 (4)
Amortization of EDIT
(481)(195)(133)(74)(59)(79)(48)(23)
AFUDC equity income(41)(20)(14)(11)(3)(1)(2)(2)
AFUDC equity depreciation36 18 12 6 6 1 4 — 
Other tax credits(43)(12)(16)(9)(7)(2)(3)(8)
Other items, net(10)(4)(2)(5)2 (2)(1)— 
Income tax expense (benefit) from continuing operations
$300 $126 $348 $158 $225 $(21)$(24)$39 
Effective tax rate7.4 %7.3 %16.0 %13.6 %19.8 %(7.5)%(21.2)%10.8 %
Valuation allowances have been established for certain state NOL carryforwards and state income tax credits that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in state income tax, net of federal income tax effect, in the above tables.
Valuation allowances have been established for foreign tax credits and certain tax attributes that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in Other items, net in the above tables.
DEFERRED TAXES
Net Deferred Income Tax Liability Components
 December 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Deferred credits and other liabilities $284 $217 $84 $43 $41 $17 $15 $40 
Lease obligations 430 88 265 179 86 2 12 2 
Pension, post-retirement and other employee benefits 89 (33)(23)(1)(26)6 1 (2)
Progress Energy merger purchase accounting adjustments(a)
227 — — — — — — — 
Tax credits and NOL carryforwards 3,845 522 783 312 449 70 145 57 
Regulatory liabilities and deferred credits— — — — — — 10 — 
Other 35 11 5 3 2 4 — 8 
Valuation allowance (517)— — — — — — — 
Total deferred income tax assets 4,393 805 1,114 536 552 99 183 105 
Investments and other assets (2,114)(1,350)(724)(671)(69)— — (48)
Accelerated depreciation rates (11,942)(3,203)(4,608)(1,624)(3,047)(1,361)(1,677)(1,019)
Regulatory assets and deferred debits, net (1,761)(304)(1,045)(585)(460)(52)— (56)
Total deferred income tax liabilities (15,817)(4,857)(6,377)(2,880)(3,576)(1,413)(1,677)(1,123)
Net deferred income tax liabilities$(11,424)$(4,052)$(5,263)$(2,344)$(3,024)$(1,314)$(1,494)$(1,018)
(a)    Primarily related to lease obligations and debt fair value adjustments.
The following table presents the expiration of tax credits and NOL carryforwards.
 December 31, 2024
(in millions)AmountExpiration Year
General Business Credits$2,186 2032—2044
Foreign Tax Credits(c)
615 2027—2028
State Carryforwards and Credits(a)
316 2025—Indefinite
Corporate AMT Credits717 Indefinite
Foreign NOL carryforwards(b)
11 2027—2042
Total tax credits and NOL carryforwards
$3,845    
(a)    A valuation allowance of $102 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(b)    A valuation allowance of $11 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(c)    A valuation allowance of $404 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.
In 2024, the Company recorded a corporate alternative minimum tax liability, net of tax credit utilization, of $133 million. In addition, under the IRA
transferability provision, the Company received net proceeds of $558 million related to the sale of certain tax credits generated by Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida.
 December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Deferred credits and other liabilities $327 $194 $77 $21 $56 $13 $18 $42 
Lease obligations 418 86 256 179 77 4 15 3 
Pension, post-retirement and other employee benefits 65 (41)(22)(1)(25)5 2 (5)
Progress Energy merger purchase accounting adjustments(a)
260 — — — — — — — 
Tax credits and NOL carryforwards 4,489 445 686 230 425 44 154 50 
Regulatory liabilities and deferred credits— — — — — — 47 — 
Investments and other assets— — — — — — 1 — 
Other 102 29 22 12 8 5 5 9 
Valuation allowance (544)— — — — — — — 
Total deferred income tax assets 5,117 713 1,019 441 541 71 242 99 
Investments and other assets (1,812)(1,213)(596)(520)(91)— — (37)
Accelerated depreciation rates (11,969)(3,411)(4,557)(1,823)(2,778)(1,314)(1,678)(944)
Regulatory assets and deferred debits, net (1,892)(468)(1,063)(658)(405)(29)— (51)
Total deferred income tax liabilities (15,673)(5,092)(6,216)(3,001)(3,274)(1,343)(1,678)(1,032)
Net deferred income tax liabilities $(10,556)$(4,379)$(5,197)$(2,560)$(2,733)$(1,272)$(1,436)$(933)
(a)    Primarily related to lease obligations and debt fair value adjustments.
UNRECOGNIZED TAX BENEFITS
The following tables present changes to unrecognized tax benefits.
 Year Ended December 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$62 $21 $24 $18 $6 $2 $3 $11 
Gross increases – current period tax positions12 4 5 4 1 — — 2 
Unrecognized tax benefits – December 31$74 $25 $29 $22 $7 $2 $3 $13 
 Year Ended December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$65 $17 $19 $13 $5 $1 $2 $9 
Gross decreases – tax positions in prior periods
(15)— — — — — — — 
Gross increases – current period tax positions12 4 5 5 1 1 1 2 
Total changes(3)4 5 5 1 1 1 2 
Unrecognized tax benefits – December 31$62 $21 $24 $18 $6 $2 $3 $11 
 Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$51 $13 $15 $10 $4 $1 $2 $4 
Gross increases – current period tax positions14 4 4 3 1 — — 5 
Total changes14 4 4 3 1 — — 5 
Unrecognized tax benefits – December 31$65 $17 $19 $13 $5 $1 $2 $9 
The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2024. None of Duke Energy Registrants anticipates a material increase or decrease in unrecognized tax benefits within the next 12 months.
 December 31, 2024
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Amount that if recognized, would affect the
effective tax rate or regulatory liability(a)
$68 $24 $27 $20 $7 $2 $3 $11 
(a)    The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.
Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2019, aside from certain tax attributes carried forward for utilization in future years.