Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Components of income taxes

The components of income taxes are as follows:

	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2025		2024		2023		2025		2024		2023
	(millions)
Federal:
Current	$	194	$	208	$	507	$	121	$	252	$	990
Deferred	(1,248)		(150)		368		288		422		(179)
Total federal	(1,054)		58		875		409		674		811
State:
Current	78		126		161		161		116		294
Deferred	174		155		(30)		149		180		18
Total state	252		281		131		310		296		312
Total income taxes	$	(802)	$	339	$	1,006	$	719	$	970	$	1,123

Reconciliation between the effective income tax rates and the applicable statutory rates

A reconciliation of the income tax expense (benefit) and effective income tax rates based on the statutory U.S. federal income tax rate is as follows:

	NEE
	Years Ended December 31,
	2025				2024				2023
	(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%	$	951	21.0	%	$	1,268	21.0	%	$	1,530	21.0	%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit	199		4.4(a)		223		3.7(b)		102		1.4(c)
Nontaxable or nondeductible items:
Taxes attributable to noncontrolling interests	315		7.0		260		4.3		219		3.0
Amortization of deferred regulatory credit	(159)		(3.5)		(163)		(2.7)		(182)		(2.5)
Other – net	(14)		(0.3)		(30)		(0.5)		(44)		(0.6)
Clean energy tax credits	(2,075)		(45.8)		(1,201)		(19.9)		(605)		(8.3)
Valuation allowance	95		2.1		48		0.8		22		0.3
Other adjustments – net	(114)		(2.6)		(66)		(1.1)		(36)		(0.5)
Income tax expense (benefit) and effective tax rate	$	(802)	(17.7)	%	$	339	5.6	%	$	1,006	13.8	%

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(a)State taxes in Florida made up greater than 50 percent of the tax effect in this category.

(b)State taxes in Florida and Massachusetts made up greater than 50 percent of the tax effect in this category.

(c)State taxes in Florida, California, Kansas, Oklahoma, New Hampshire, Massachusetts and Virginia made up greater than 50 percent of the tax effect in this category.

	FPL
	Years Ended December 31,
	2025				2024				2023
	(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%	$	1,204	21.0	%	$	1,158	21.0	%	$	1,192	21.0	%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit(a)	246		4.3		237		4.3		244		4.3
Clean energy tax credits	(522)		(9.1)		(237)		(4.3)		(114)		(2.0)
Amortization of deferred regulatory credit	(160)		(2.8)		(165)		(3.0)		(182)		(3.2)
Other adjustments – net	(49)		(0.9)		(23)		(0.4)		(17)		(0.3)
Income tax expense and effective tax rate	$	719	12.5	%	$	970	17.6	%	$	1,123	19.8	%

______________________

(a)State taxes in Florida made up greater than 50 percent of the tax effect in this category.

Schedule of deferred income tax liabilities and assets

The income tax effects of temporary differences giving rise to consolidated deferred income tax liabilities and assets are as follows:

	NEE				FPL
	December 31,				December 31,
	2025		2024		2025		2024
	(millions)
Deferred tax liabilities:
Property-related	$	12,374	$	11,558	$	10,048	$	9,272
Pension	708		637		525		495
Investments in partnerships and joint ventures	2,822		2,534		3		3
Other	2,275		2,168		1,448		1,463
Total deferred tax liabilities	18,179		16,897		12,024		11,233
Deferred tax assets and valuation allowance:
Decommissioning reserves	323		307		346		331
Net operating loss carryforwards	278		233		—		—
Tax credit carryforwards	3,591		3,057		9		—
ARO and accrued asset removal costs	257		233		123		116
Regulatory liabilities	1,120		1,153		1,096		1,129
Other	791		652		295		219
Valuation allowance(a)	(295)		(266)		(1)		—
Net deferred tax assets	6,065		5,369		1,868		1,795
Net deferred income taxes	$	12,114	$	11,528	$	10,156	$	9,438

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(a)Reflects valuation allowances related to deferred state tax credits and state operating loss carryforwards.

Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:

	NEE				FPL
	December 31,				December 31,
	2025		2024		2025		2024
			(millions)
Noncurrent other assets	$	245	$	221	$	—	$	—
Deferred income taxes – noncurrent liabilities	(12,359)		(11,749)		(10,156)		(9,438)
Net deferred income taxes	$	(12,114)	$	(11,528)	$	(10,156)	$	(9,438)

Components of deferred tax assets relating to net operating loss carryforwards

The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards as of December 31, 2025 are as follows:

	Amount			Expiration Dates
	(millions)
Net operating loss carryforwards:
State	$	259	(a)	2026 – 2045
Foreign	19		(b)	2028 – 2045
Net operating loss carryforwards	$	278
Tax credit carryforwards:
Federal	$	3,208		2038 – 2047
State	376		(c)	2026 – 2044
Foreign	7			2034 – 2045
Tax credit carryforwards	$	3,591

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(a)Includes approximately $92 million of net operating loss carryforwards with an indefinite expiration period.

(b)Includes approximately $1 million of net operating loss carryforwards with an indefinite expiration period.

(c)Includes approximately $201 million of clean energy tax credit carryforwards with an indefinite expiration period.

Schedule of Cash Flow, Supplemental Disclosures

The components of cash paid (received) for income taxes – net are as follows:

	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2025		2024		2023		2025		2024		2023
	(millions)
Cash paid (received) for income taxes – net:
Federal	$	(1,264)	$	(1,010)	$	280	$	(52)	$	242	$	977
State	(11)		250		41		89		398		4
Total	$	(1,275)	$	(760)	$	321	$	37	$	640	$	981
States that exceed 5% of total cash paid (received) for income taxes – net:
Florida	(a)		$	176	(a)		$	91	$	397	(a)

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(a)Jurisdiction below the threshold for the period presented.