Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:

Nine Months Ended September 30	2024			2023
CMS Energy, including Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		5.4			1.7
Renewable energy tax credits		(6.3)			(6.9)
TCJA excess deferred taxes		(3.8)			(3.9)
Deferred tax adjustment2		(1.9)			—
Taxes attributable to noncontrolling interests		1.1			0.6
Other, net		(0.2)			0.2
Effective tax rate		15.3	%		12.7	%
Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		5.0			2.9
Renewable energy tax credits		(4.4)			(4.5)
TCJA excess deferred taxes		(3.5)			(3.7)
Deferred tax adjustment2		(1.8)			—
Other, net		(0.2)			(0.1)
Effective tax rate		16.1	%		15.6	%

1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.

2In September 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years.

Consumers Energy Company

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:

Nine Months Ended September 30	2024			2023
CMS Energy, including Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		5.4			1.7
Renewable energy tax credits		(6.3)			(6.9)
TCJA excess deferred taxes		(3.8)			(3.9)
Deferred tax adjustment2		(1.9)			—
Taxes attributable to noncontrolling interests		1.1			0.6
Other, net		(0.2)			0.2
Effective tax rate		15.3	%		12.7	%
Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		5.0			2.9
Renewable energy tax credits		(4.4)			(4.5)
TCJA excess deferred taxes		(3.5)			(3.7)
Deferred tax adjustment2		(1.8)			—
Other, net		(0.2)			(0.1)
Effective tax rate		16.1	%		15.6	%

1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.

2In September 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years.