INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Income taxes for Entergy for 2024, 2023, and 2022 consist of the following:


	2024	2023	2022
	(In Thousands)
Current:
Federal	$66,708	$60,639	$32,387
State	44,956	23,014	(3,091)
Total	111,664	83,653	29,296
Deferred and non-current - net	281,190	(768,941)	(67,520)
Investment tax credits - net	(11,827)	(5,247)	(754)
Income taxes	$381,027	($690,535)	($38,978)

Income taxes for the Registrant Subsidiaries for 2024, 2023, and 2022 consist of the following:


2024	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($10,558)	($79,519)	$38,680	($8,022)	$8,281	($5,527)
State	(2,275)	1,709	2,407	5,331	5,468	(396)
Total	(12,833)	(77,810)	41,087	(2,691)	13,749	(5,923)
Deferred and non-current - net	88,637	307,835	39,608	6,381	52,702	39,409
Investment tax credits - net	(1,230)	(4,616)	(380)	(848)	(767)	(3,983)
Income taxes	$74,574	$225,409	$80,315	$2,842	$65,684	$29,503


2023	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	$33,100	($142,253)	$20,328	($99,343)	$2,851	$337
State	(4,201)	(6,397)	4,142	(5,854)	3,719	(1,570)
Total	28,899	(148,650)	24,470	(105,197)	6,570	(1,233)
Deferred and non-current - net	(126,878)	(52,451)	30,690	(84,744)	57,066	31,005
Investment tax credits - net	(1,231)	(4,680)	(796)	(32)	(764)	2,260
Income taxes	($99,210)	($205,781)	$54,364	($189,973)	$62,872	$32,032


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	$8,015	($79,079)	$9,242	$1,074	$37,471	($11,720)
State	(1,066)	(1,773)	(6,486)	6,221	2,260	581
Total	6,949	(80,852)	2,756	7,295	39,731	(11,139)
Deferred and non-current - net	74,802	(77,223)	48,443	16,814	11,520	(83,369)
Investment tax credits - net	(855)	(4,778)	3,665	168	(630)	1,680
Income taxes	$80,896	($162,853)	$54,864	$24,277	$50,621	($92,828)

Total income taxes for Entergy differ from the amounts computed by applying the statutory income tax rate to income before income taxes. The reasons for the differences for the years 2024, 2023, and 2022 are:


	2024		2023		2022
	(In Thousands)
Net income attributable to Entergy Corporation	$1,055,590		$2,356,536		$1,103,166
Preferred dividend requirements of subsidiaries and noncontrolling interests	5,594		5,774		(6,028)
Consolidated net income	1,061,184		2,362,310		1,097,138
Income taxes	381,027		(690,535)		(38,978)
Income before income taxes	$1,442,211		$1,671,775		$1,058,160

Income taxes computed at statutory rate (21%)	$302,864		$351,073		$222,214
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	81,377		70,144		61,368
Regulatory differences - utility plant items	(30,288)		(27,901)		(32,143)
Equity component of AFUDC	(27,343)		(20,172)		(14,156)
Amortization of investment tax credits	(8,808)		(7,978)		(7,740)
Flow-through / permanent differences	33		(1,374)		1,011
Amortization of deficient/(excess) ADIT (a)	19,169		9,102		(34,899)
IRS audit resolution (b)	—		(842,769)		—
Reversal of regulatory liability (c)	—		(105,649)		—
Entergy Louisiana securitization (d)	—		(129,034)		(282,620)
System Energy sale-leaseback order (e)	—		—		12,662
State audit resolution (f)	(9,057)		—		—
State rate change (g)	28,636		—		—
Provision for uncertain tax positions	21,487		18,884		34,423
Valuation allowance	(780)		(8,697)		(2,754)
Other - net	3,737		3,836		3,656
Total income taxes as reported	$381,027		($690,535)		($38,978)
Effective Income Tax Rate	26.4	%	(41.3	%)	(3.7	%)

(a)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2024, 2023, and 2022 and the tax legislation enactment in 2017.

(b)See “Income Tax Audits - 2016-2018 IRS Audit” below for discussion of the resolution of the 2016-2018 IRS audit in 2023.

(c)See Note 2 to the financial statements for discussion of Entergy Louisiana’s reversal of a regulatory liability, primarily associated with the Hurricane Isaac securitization, recognized in 2017 as a result of the Tax Cuts and Jobs Act.

(d)See “Other Tax Matters – Act 293 Securitizations” below for discussion of the Entergy Louisiana May 2022 and March 2023 storm cost securitizations.

(e)See Note 2 to the financial statements for discussion of the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint.

(f)See “Income Tax Audits - State Income Tax Audits” below for discussion of the resolution of the 2014-2018 Arkansas Department of Finance and Administration examination in 2024.

(g)See “Other Tax Matters - Arkansas and Louisiana Corporate Income Tax Rate Changes” below for details.

Total income taxes for the Registrant Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before taxes. The reasons for the differences for the years 2024, 2023, and 2022 are:


2024	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Net income	$319,466	$890,771	$245,407	$15,847	$293,622	$103,500
Income taxes	74,574	225,409	80,315	2,842	65,684	29,503
Income before income taxes	$394,040	$1,116,180	$325,722	$18,689	$359,306	$133,003

Income taxes computed at statutory rate (21%)	$82,748	$234,398	$68,402	$3,925	$75,454	$27,931
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	13,940	50,760	13,210	1,248	5,164	4,936
Regulatory differences - utility plant items	(9,885)	(9,988)	(3,572)	(830)	(4,537)	(1,475)
Equity component of AFUDC	(6,032)	(7,513)	(1,910)	(445)	(10,045)	(1,398)
Amortization of investment tax credits	(1,201)	(4,563)	(267)	(839)	(748)	(1,155)
Flow-through / permanent differences	214	(3,244)	2,987	(338)	(760)	(538)

Amortization of excess ADIT (a)	10,193	9,305	—	(332)	2	—
State audit resolution (f)	(18,276)	—	—	—	—	—

State rate change (g)	—	16,307	—	242	—	—
Non-taxable dividend income	—	(64,982)	—	—	—	—
Provision for uncertain tax positions	1,800	3,400	1,100		777	1,000
Other - net	1,073	1,529	365	211	377	202
Total income taxes as reported	$74,574	$225,409	$80,315	$2,842	$65,684	$29,503
Effective Income Tax Rate	18.9%	20.2%	24.7%	15.2%	18.3%	22.2%


2023	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Net income	$396,850	$1,273,370	$181,969	$228,938	$291,273	$108,772
Income taxes	(99,210)	(205,781)	54,364	(189,973)	62,872	32,032
Income before income taxes	$297,640	$1,067,589	$236,333	$38,965	$354,145	$140,804

Income taxes computed at statutory rate (21%)	$62,504	$224,194	$49,630	$8,183	$74,370	$29,569
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	13,291	51,899	11,133	1,907	2,574	5,798
Regulatory differences - utility plant items	(8,812)	(5,535)	(5,290)	(1,353)	(6,394)	(517)
Equity component of AFUDC	(4,093)	(6,754)	(1,796)	(309)	(5,920)	(1,301)
Amortization of investment tax credits	(1,201)	(4,625)	(223)	(25)	(748)	(1,155)
Flow-through / permanent differences	1,105	126	3,534	(1,913)	1,493	(191)
Amortization of excess ADIT (a)	(6,095)	14,032	—	1,147	17	—
IRS audit resolution (b)	(159,588)	(179,111)	(3,291)	(198,424)	(3,112)	(1,575)
Reversal of regulatory liability (c)	—	(105,649)	—	—	—	—
Entergy Louisiana securitization (d)	—	(133,443)	—	—	—	—
Non-taxable dividend income	—	(62,116)	—	—	—	—
Provision for uncertain tax positions	2,600	(400)	300	600	211	1,200

Other - net	1,079	1,601	367	214	381	204
Total income taxes as reported	($99,210)	($205,781)	$54,364	($189,973)	$62,872	$32,032
Effective Income Tax Rate	(33.3%)	(19.3%)	23.0%	(487.5%)	17.8%	22.7%


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Net income	$292,887	$855,870	$176,267	$64,101	$303,327	($276,593)
Income taxes	80,896	(162,853)	54,864	24,277	50,621	(92,828)
Income before income taxes	$373,783	$693,017	$231,131	$88,378	$353,948	($369,421)

Income taxes computed at statutory rate (21%)	$78,494	$145,534	$48,538	$18,559	$74,329	($77,578)
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	17,981	44,244	9,659	6,733	2,175	(16,727)
Regulatory differences - utility plant items	(12,466)	(6,347)	(7,726)	(1,908)	(3,010)	(686)
Equity component of AFUDC	(3,437)	(5,513)	(1,286)	(174)	(2,841)	(905)
Amortization of investment tax credits	(1,201)	(4,720)	(223)	175	(614)	(1,155)
Flow-through / permanent differences	106	3,467	4,837	230	765	(641)
Amortization of excess ADIT (a)	—	(13,164)	—	(752)	(20,983)	—

Entergy Louisiana securitization (d)	—	(289,609)	—	—	—	—
System Energy sale-leaseback order (e)	—	—	—	—	—	12,662
Non-taxable dividend income	—	(38,735)	—	—	—	—
Provision for uncertain tax positions	1,600	400	700	1,200	420	(8,000)
Valuation allowance	(1,258)	—	—	—	—	—
Other - net	1,077	1,590	365	214	380	202
Total income taxes as reported	$80,896	($162,853)	$54,864	$24,277	$50,621	($92,828)
Effective Income Tax Rate	21.6%	(23.5%)	23.7%	27.5%	14.3%	25.1%

(a)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess ADIT in 2024, 2023, 2022 and the tax legislation enactment in 2017.

(b)See “Income Tax Audits - 2016-2018 IRS Audit” below for discussion of the resolution of the 2016-2018 IRS audit in 2023.

(c)See Note 2 to the financial statements for discussion of Entergy Louisiana’s reversal of a regulatory liability, primarily associated with the Hurricane Isaac securitization, recognized in 2017 as a result of the Tax Cuts and Jobs Act.

(d)See “Other Tax Matters - Act 293 Securitizations” below for discussion of the Entergy Louisiana May 2022 and March 2023 storm cost securitizations.

(e)See Note 2 to the financial statements for discussion of the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint.

(f)See “Income Tax Audits - State Income Tax Audits” below for discussion of the resolution of the 2014-2018 Arkansas Department of Finance and Administration examination in 2024.

(g)See “Other Tax Matters - Arkansas and Louisiana Corporate Income Tax Rate Changes” below for details.

Significant components of accumulated deferred income taxes and taxes accrued for Entergy Corporation and Subsidiaries as of December 31, 2024 and 2023 are as follows:


	2024	2023
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($6,451,189)	($6,192,156)
Regulatory assets	(1,003,045)	(989,405)
Nuclear decommissioning trusts/receivables	(563,423)	(467,267)
Pension, net regulatory asset	(303,007)	(363,829)
Combined unitary state taxes	(3,600)	(8,783)
Power purchase agreements	(89,614)	(75,612)
Accumulated storm damage provision	—	(2,474)
Deferred fuel	(23,305)	(69,436)
Other	(206,648)	(251,107)
Total	(8,643,831)	(8,420,069)
Deferred tax assets:
Regulatory liabilities	1,394,937	1,247,530
Nuclear and other decommissioning liabilities	164,685	147,011
Pension and other post-employment benefits	22,646	116,222
Compensation	79,580	81,226
Accumulated deferred investment tax credit	52,709	55,928
Provision for allowances and contingencies	141,769	149,479
Unbilled/deferred revenues	(9,960)	2,418
Net operating loss carryforwards	2,672,993	2,857,908
Capital losses and miscellaneous tax credits	111,325	107,009
Valuation allowance	(338,508)	(372,119)
Other	212,563	220,055
Total	4,504,739	4,612,667
Non-current accrued taxes (including unrecognized tax benefits)	(309,669)	(422,213)
Accumulated deferred income taxes and taxes accrued	($4,448,761)	($4,229,615)

Entergy’s estimated tax attributes carryovers and their expiration dates as of December 31, 2024 are as follows:

Carryover Description

Carryover Amount

Year(s) of expiration

Federal net operating losses before 1/1/2018

$4.4 billion

2025-2037

Federal net operating losses - 1/1/2018 forward

$13.9 billion

N/A

State net operating losses

$4.3 billion

2028-2042

State net operating losses with no expiration

$8.8 billion

N/A

Other federal and state carryforwards

$134.5 million

2025-2028

Miscellaneous federal and state credits

$138.8 million

2025-2044

As a result of the accounting for uncertain tax positions, the amount of the deferred tax assets reflected in the financial statements is less than the amount of the tax effect of the federal and state net operating loss carryovers, tax credit carryovers, and other tax attributes generated and reflected on income tax returns. Entergy evaluates the available positive and negative evidence to estimate whether sufficient future taxable income of the appropriate character will be generated to realize the benefits of existing deferred tax assets. When the evaluation

indicates that Entergy will not be able to realize the existing benefits, a valuation allowance is recorded to reduce deferred tax assets to the realizable amount.

Because it is more likely than not that the benefits from certain state net operating losses and other deferred tax assets will not be utilized, valuation allowances totaling $339 million as of December 31, 2024 and $372 million as of December 31, 2023 have been provided on the deferred tax assets related to federal and state jurisdictions in which Entergy does not currently expect to be able to utilize certain separate company tax return attributes, preventing realization of such deferred tax assets. Certain accelerated tax deductions which generated taxable losses in various taxing jurisdictions, and which have a limited term carryover period, have resulted in the impairment of the realizability of such carryovers and are reflected in the valuation allowance disclosed above.

Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2024 and 2023 are as follows:


2024	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,530,196)	($2,729,299)	($849,623)	($272,182)	($727,242)	($466,361)
Regulatory assets	(219,773)	(497,177)	(37,374)	(72,389)	(100,959)	(75,606)
Nuclear decommissioning trusts/receivables	(185,725)	(202,364)	—	—	—	(175,341)
Pension, net regulatory asset	(101,887)	(84,732)	(26,064)	(9,687)	(16,569)	—
Power purchase agreements	11,993	(97,846)	1,140	(12,385)	(5,148)	—

Deferred fuel	—	(4,785)	(17,234)	(1,247)	—	(78)
Other	(24,430)	(106,590)	(5,231)	(5,133)	(4,512)	(13,572)
Total	(2,050,018)	(3,722,793)	(934,386)	(373,023)	(854,430)	(730,958)
Deferred tax assets:
Regulatory liabilities	310,621	678,086	53,046	89,385	37,325	229,065
Nuclear and other decommissioning liabilities	127,933	18,649	—	(407)	97	17,956
Pension and other post-employment benefits	(29,923)	39,379	(8,989)	(19,443)	(23,403)	(24,642)
Compensation	4,851	7,119	3,277	1,394	2,596	515
Accumulated deferred investment tax credit	6,360	26,549	3,355	4,205	1,515	10,724
Provision for allowances and contingencies	31,686	59,448	11,361	23,998	4,358	225
Unbilled/deferred revenues	3,546	(24,017)	1,274	715	7,925	—
Net operating loss carryforwards	126,255	336,128	305	30,740	50	69,611
Capital losses and miscellaneous tax credits	14,489	17,029	8,206	16,220	1,273	10,788
Other	11,608	54,207	1,096	1,692	1,189	—
Total	607,426	1,212,577	72,931	148,499	32,925	314,242
Non-current accrued taxes (including unrecognized tax benefits)	(46,577)	32,262	(8,661)	22,983	(47,344)	(35,114)
Accumulated deferred income taxes and taxes accrued	($1,489,169)	($2,477,954)	($870,116)	($201,541)	($868,849)	($451,830)


2023	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Deferred tax liabilities:
Plant basis differences - net	($1,421,272)	($2,639,079)	($810,120)	($272,187)	($671,072)	($450,559)
Regulatory assets	(241,427)	(500,395)	(41,519)	(23,618)	(104,562)	(76,522)
Nuclear decommissioning trusts/receivables	(154,106)	(173,402)	—	—	—	(139,858)
Pension, net regulatory asset	(96,853)	(82,305)	(24,342)	(9,216)	(17,522)	(18,895)
Power purchase agreements	15,993	(112,292)	1,140	(12,516)	(4,551)	—
Accumulated storm damage provision	—	—	—	—	(1,387)	—
Deferred fuel	—	(17,065)	(21,137)	(1,563)	(29,194)	(37)
Other	(21,187)	(126,952)	(6,844)	(4,270)	(3,301)	(9,051)
Total	(1,918,852)	(3,651,490)	(902,822)	(323,370)	(831,589)	(694,922)
Deferred tax assets:
Regulatory liabilities	296,278	575,459	54,586	42,921	41,137	240,310
Nuclear and other decommissioning liabilities	118,301	9,055	—	—	97	19,259
Pension and other post-employment benefits	(28,868)	46,837	(10,064)	(19,354)	(21,977)	(2,641)
Compensation	4,054	6,078	3,649	1,268	2,181	406
Accumulated deferred investment tax credit	6,761	27,902	3,446	4,431	1,672	11,717
Provision for allowances and contingencies	23,956	70,297	10,072	25,846	8,659	225
Unbilled/deferred revenues	5,962	(20,375)	6,194	1,045	8,365	—
Net operating loss carryforwards	94,321	459,553	8,375	26,227	61	35,089
Capital losses and miscellaneous tax credits	7,137	13,073	7,613	15,684	1,655	13,211
Other	17,072	52,438	1,556	(235)	1,740	—
Total	544,974	1,240,317	85,427	97,833	43,590	317,576
Non-current accrued taxes (including unrecognized tax benefits)	(63,175)	19,731	(4,349)	29,922	(26,906)	(28,398)
Accumulated deferred income taxes and taxes accrued	($1,437,053)	($2,391,442)	($821,744)	($195,615)	($814,905)	($405,744)

The Registrant Subsidiaries’ estimated tax attributes carryovers and their expiration dates as of December 31, 2024 are as follows:

Entergy Arkansas

Entergy Louisiana

Entergy Mississippi

Entergy New Orleans

Entergy Texas

System Energy

Federal net operating losses before 1/1/2018

$— million

$812.8 million

$— million

$82.6 million

$— million

Year(s) of expiration

N/A

2035-2037

N/A

2037

N/A

Federal net operating losses - 1/1/2018 forward

$576 million

$2.6 billion

$— million

$26.4 million

$1.5 billion

$264.7 million

Year(s) of expiration

N/A

State net operating losses

$597.4 million

$5.8 billion

$7.1 million

$336.6 million

$1 million

$370.1 million

Year(s) of expiration

2028-2032

N/A

2039-2042

N/A

2028

2040-2044

Misc. federal credits

$12.9 million

$21 million

$4.9 million

$16.7 million

$0.8 million

$5.7 million

Year(s) of expiration

2038-2044

2035-2044

2038-2044

2037-2044

2039-2044

2029-2044

State credits

$— million

$1.1 million

$8.3 million

$— million

$1.3 million

$17 million

Year(s) of expiration

N/A

2025-2028

N/A

2027-2033

2025-2028

Unrecognized tax benefits

Accounting standards establish a “more-likely-than-not” recognition threshold that must be met before a tax benefit can be recognized in the financial statements. If a tax deduction is taken on a tax return but does not meet the more-likely-than-not recognition threshold, an increase in income tax liability, above what is payable on the tax return, is required to be recorded. A reconciliation of Entergy’s beginning and ending amount of unrecognized tax benefits is as follows:


	2024	2023	2022
	(In Thousands)
Gross balance at January 1	$2,439,910	$6,393,599	$5,759,968
Additions based on tax positions related to the current year	12,731	332,884	792,134
Additions for tax positions of prior years	21,149	194,894	37,259
Reductions for tax positions of prior years (a)	(85,715)	(1,300,381)	(195,762)
Settlements (a)	(33,208)	(3,181,086)	—

Gross balance at December 31	2,354,867	2,439,910	6,393,599
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(2,079,778)	(2,160,484)	(5,566,212)
Cash paid to taxing authorities	(27,000)	—	(82,000)
Unrecognized tax benefits net of unused tax attributes and payments (b)	$248,089	$279,426	$745,387

(a)Amounts in 2023 are primarily related to the resolution of the 2016-2018 IRS audit as discussed in “Income Tax Audits - 2016-2018 IRS Audit” below. Amounts in 2024 are primarily related to the resolution of 2014-2018 Arkansas tax examination as discussed in “Income Tax Audits - State Income Tax Audits” below.

(b)Potential tax liability above what is payable on tax returns.

The balances of unrecognized tax benefits include $1,900 million, $1,899 million, and $3,254 million as of December 31, 2024, 2023, and 2022, respectively, which, if recognized, would lower the effective income tax

rates. Because of the effect of deferred tax accounting, the remaining balances of unrecognized tax benefits of $455 million, $541 million, and $3,140 million as of December 31, 2024, 2023, and 2022, respectively, if disallowed, would not affect the annual effective income tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

Entergy accrues interest expense, if any, related to unrecognized tax benefits in income tax expense. Entergy’s December 31, 2024, 2023, and 2022 accrued balance for the possible payment of interest is approximately $32 million, $39 million, and $50 million, respectively. Interest (net-of-tax) of ($7) million, ($11) million, and $8 million was recorded in 2024, 2023, and 2022, respectively.

A reconciliation of the Registrant Subsidiaries’ beginning and ending amount of unrecognized tax benefits for 2024, 2023, and 2022 is as follows:


2024	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2024	$69,197	$864,043	$5,653	$19,331	$415,205	$14,301
Additions based on tax positions related to the current year (a)	2,732	1,921	237	163	378	833
Additions for tax positions of prior years	25,784	10,357	536	153	560	1,281
Reductions for tax positions of prior years	(52,300)	(9,205)	(437)	(139)	(31,810)	—

Gross balance at December 31, 2024	45,413	867,116	5,989	19,508	384,333	16,415
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(30,333)	(753,101)	(4,997)	(11,639)	(314,446)	(16,415)
Unrecognized tax benefits net of unused tax attributes	$15,080	$114,015	$992	$7,869	$69,887	$—


2023	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2023	$1,452,819	$1,350,836	$547,548	$638,726	$389,366	$23,702
Additions based on tax positions related to the current year (a)	2,249	332,320	209	78	196	752
Additions for tax positions of prior years	—	—	—	—	94,793	—
Reductions for tax positions of prior years (b)	(148,558)	(458,072)	(16,853)	(191,336)	(67,156)	(9,532)
Settlements (b)	(1,237,313)	(361,041)	(525,251)	(428,137)	(1,994)	(621)
Gross balance at December 31, 2023	69,197	864,043	5,653	19,331	415,205	14,301
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(34,683)	(735,612)	(3,778)	(11,721)	(381,561)	(14,301)
Unrecognized tax benefits net of unused tax attributes	$34,514	$128,431	$1,875	$7,610	$33,644	$—


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Gross balance at January 1, 2022	$1,408,494	$604,628	$549,569	$639,497	$552,295	$23,356
Additions based on tax positions related to the current year (a)	40,502	750,320	185	72	173	690
Additions for tax positions of prior years	6,233	10,262	1,122	393	801	761
Reductions for tax positions of prior years	(2,410)	(14,374)	(3,328)	(1,236)	(163,903)	(1,105)
Gross balance at December 31, 2022	1,452,819	1,350,836	547,548	638,726	389,366	23,702
Offsets to gross unrecognized tax benefits:
Loss and tax credit carryovers	(1,277,414)	(1,328,916)	(504,940)	(455,928)	(377,054)	(23,702)
Unrecognized tax benefits net of unused tax attributes	$175,405	$21,920	$42,608	$182,798	$12,312	$—

(a)The primary additions for Entergy Louisiana in 2022 and 2023 are related to the Entergy Louisiana securitizations as discussed in “Other Tax Matters - Act 293 Securitizations” below.

(b)Amounts in 2023 are primarily related to the resolution of the 2016-2018 IRS audit as discussed in “Income Tax Audits - 2016-2018 IRS Audit” below.

The Registrant Subsidiaries’ balances of unrecognized tax benefits included amounts which, if recognized, would have reduced income tax expense as follows:


	December 31,
	2024	2023	2022
	(In Millions)
Entergy Arkansas	$32.6	$57.2	$377.9
Entergy Louisiana	$868.2	$862.5	$720.8
Entergy Mississippi	$1.3	$1.0	$151.2
Entergy New Orleans	$18.3	$18.2	$310.7
Entergy Texas	$50.3	$2.9	$3.3
System Energy	$4.0	$3.1	$2.5

Accrued balances for the possible payment of interest related to unrecognized tax benefits for the Registrant Subsidiaries are as follows:


	December 31,
	2024	2023	2022
	(In Millions)
Entergy Arkansas	$8.4	$7.8	$4.3
Entergy Louisiana	$5.1	$1.5	$4.1
Entergy Mississippi	$3.2	$2.1	$3.1
Entergy New Orleans	$0.6	$0.6	$6.4
Entergy Texas	$0.5	$—	$1.1
System Energy	$2.9	$1.9	$1.9

The Registrant Subsidiaries record interest and penalties related to unrecognized tax benefits in income tax expense. No penalties were recorded in 2024, 2023, and 2022. Interest (net-of-tax) was recorded as follows:


	2024	2023	2022
	(In Millions)
Entergy Arkansas	$0.6	$3.5	$1.6
Entergy Louisiana	$3.6	($2.6)	$0.4
Entergy Mississippi	$1.1	($1.0)	$0.7
Entergy New Orleans	$—	($5.8)	$1.2
Entergy Texas	$0.5	($1.1)	$—
System Energy	$1.0	$—	($10.2)

Income Tax Audits

Entergy and its subsidiaries file U.S. federal and various state income tax returns. IRS examinations are complete for years before 2019. All state taxing authorities’ examinations are complete for years before 2016. Entergy regularly defends its positions and works with the IRS to resolve audits. The resolution of audit issues could result in significant changes to the amounts of unrecognized tax benefits in the next twelve months.

2016-2018 IRS Audit

The IRS completed its examination of the 2016 through 2018 tax years and issued a Revenue Agent Report (RAR) for each federal filer under audit in November 2023. Entergy agreed to all adjustments contained in the RARs. Entergy and the Registrant Subsidiaries recorded all the material effects resulting from the RARs in the fourth quarter of 2023.

Utility Restructurings

In 2017, Entergy New Orleans undertook an internal restructuring, and in 2018, Entergy Arkansas and Entergy Mississippi also participated in internal restructurings under which these three Utility operating companies joined Entergy Louisiana as wholly-owned subsidiaries of Entergy Utility Holding Company, LLC. The change in ownership required Entergy to recognize Entergy Arkansas’s nuclear decommissioning liabilities for income tax purposes, which resulted in recognition of a gain for income tax purposes and a corresponding increase in the tax basis of assets, in accordance with the Internal Revenue Code and Treasury Regulations. Entergy determined that there was uncertainty regarding the treatment of certain aspects of the restructurings and recorded provisions for uncertain tax positions which are now considered to be effectively settled in accordance with accounting standards. The reversal of such provisions for uncertain tax positions results in a reduction of income tax expense of $156 million for Entergy Arkansas, $1 million for Entergy Mississippi, and $6 million for Entergy New Orleans.

The IRS also required Entergy New Orleans to reverse a tax gain associated with the 2017 restructuring that had been previously recognized, allowing Entergy New Orleans to reduce its tax expense by $39 million.

After the restructuring, Entergy Arkansas adopted a new method of accounting for income tax purposes in which its nuclear decommissioning costs are treated as production costs of electricity includable in cost of goods sold, which resulted in a $1.8 billion reduction in taxable income on its 2018 tax return that was treated as an unrecognized tax benefit. In conjunction with the audit, Entergy agreed with the IRS adjustments concerning the nuclear decommissioning tax position allowing Entergy Arkansas to include $102 million of its decommissioning liability in cost of goods sold.

Mark-to-Market Method of Accounting

In 2016, Entergy Louisiana elected mark-to-market income tax treatment for various wholesale electric power purchase and sale agreements, including Entergy Louisiana’s contract to purchase electricity from the Vidalia hydroelectric facility and from System Energy under the Unit Power Sales Agreement as well as other intercompany power purchase agreements. The election resulted in a $2 billion deductible temporary difference. The IRS allowed the mark-to-market tax method of accounting associated with the Vidalia contract and various other third-party and intercompany wholesale electric power purchase and sale agreements. The IRS disallowed the net deductions associated with the Unit Power Sales Agreement, which did not have an effect on net tax expense. The net allowance resulted in a reversal of a provision for uncertain tax positions of $132 million and a corresponding reduction of income tax expense.

In 2017, Entergy New Orleans also elected mark-to-market income tax treatment for the Unit Power Sales Agreement and various intercompany wholesale electric contracts which resulted in a $1 billion deductible temporary difference. The IRS allowed the mark-to-market tax method of accounting associated with various intercompany and third-party wholesale electric contracts. The IRS disallowed the net deductions associated with the Unit Power Sales Agreement, which did not have an effect on net tax expense. The net allowance resulted in a reversal of a provision for uncertain tax positions of $139 million and a corresponding reduction of income tax expense.

In 2018, Entergy Arkansas and Entergy Mississippi each accrued approximately $2 billion in deductible temporary differences related to mark-to-market tax accounting for the Unit Power Sales Agreement and various wholesale electric contracts. The IRS allowed the mark-to-market tax method of accounting associated with various intercompany and third-party wholesale electric contracts. The IRS disallowed the net deductions associated with the Unit Power Sales Agreement, which did not have an effect on net tax expense. The effective settlement of the mark-to-market tax position for Entergy Arkansas resulted in the accrual of an increase to tax expense of $40 million, which was offset by approximately $5 million of miscellaneous excess ADIT recognized as a result of the 2016-2018 IRS audit resolution. The net increase to tax expense is deferred as a regulatory asset, as discussed within the “Regulatory and Other Matters” section below.

Restructuring of Entergy’s Non-Utility Operations Business

During the 2016 to 2018 audit period, the ownership of certain of Entergy’s non-utility operations business nuclear power plants (previously reported as part of Entergy Wholesale Commodities) was restructured. Such restructuring transactions required Entergy to recognize the plants’ nuclear decommissioning liabilities for income tax purposes. The accrual of the nuclear decommissioning liabilities also required Entergy to recognize a gain for income tax purposes, a significant portion of which resulted in an increase in the tax basis of the assets. Because certain aspects of the restructuring transactions involved uncertainty, Entergy recorded a provision for uncertain tax positions. The IRS did not propose adjustments to the tax treatment of the restructuring transactions resulting in a net decrease to income tax expense of $288 million from the reversal of the provision for uncertain tax positions in fourth quarter 2023.

Reduction of Net Operating Loss Carryovers

The IRS audit reduced Entergy’s net operating loss carryover by $8 billion. A portion of Entergy’s audit adjustments were not offset by losses which resulted in a tax liability of $79 million, which was fully offset by prior deposits made by Entergy. Entergy received an assessment of interest in excess of prior deposits of $13 million in December 2023, and such interest was paid in January 2024.

Net operating loss carryovers were reduced by $4 billion for Entergy Arkansas, $1 billion for Entergy Louisiana, $2 billion for Entergy Mississippi, $1 billion for Entergy New Orleans, and $40 million for System

Energy. The IRS audit adjustments were also factored into the settle-up required under Entergy’s intercompany income tax allocation agreement, and such amounts were settled in the fourth quarter of 2023.

Regulatory and Other Matters

In accordance with prior regulatory agreements associated with the Entergy Louisiana and Entergy Gulf States Louisiana business combination and Entergy New Orleans restructuring and general rate-making principles, Entergy Louisiana and Entergy New Orleans, respectively, recorded a regulatory liability and an associated regulatory charge of $38 million and $60 million ($28 million and $44 million net-of-tax), in December 2023.

Additionally, in December 2023, a regulatory asset for income tax associated with deficient ADIT of $35 million, $2 million, and $3 million, was recorded for Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi, respectively. See Note 2 to the financial statements for discussion of Entergy Arkansas’s regulatory activity related to the Tax Cuts and Jobs Act and discussion of the settlement of Entergy Arkansas’s 2023 formula rate plan.

As noted above, Entergy accrues interest expense related to unrecognized tax benefits in income tax expense. As a result of the IRS audit resolution, Entergy reversed approximately $24 million of interest related to the allowance of previously unrecognized tax benefits in December 2023.

Reversal of net deferred credits associated with the accounting for income taxes upon the resolution of the IRS audit resulted in a reduction/(increase) in income tax expense in December 2023 of $9 million, $42 million, ($2) million, $2 million, $2 million, and $1 million for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, respectively.

In April 2024, Entergy New Orleans and the City Council entered into a settlement in principle whereby Entergy New Orleans agreed to share with customers $138 million of income tax benefits from the resolution of the 2016–2018 IRS audit. Based on this settlement in principle, in first quarter 2024 Entergy New Orleans increased the associated regulatory liability from $60 million to $138 million and recorded a corresponding $78 million regulatory charge ($57 million net-of-tax). The settlement in principle requires that the regulatory liability be amortized over 25 years beginning January 2025 with the unamortized balance included in rate base and the amortization treated as a reduction to Entergy New Orleans’s retail revenue requirement. In May 2024 the City Council approved the settlement.

In September 2024 the LPSC unanimously approved a jointly filed global stipulated settlement agreement between Entergy Louisiana and the LPSC staff whereby Entergy Louisiana agreed to $184 million of customer rate credits to be given over two years, including customer sharing of income tax benefits resulting from the 2016-2018 IRS audit. See Note 2 to the financial statements for further discussion of Entergy Louisiana agreement in principle and the subsequently filed global stipulated settlement agreement.

Included in the effect of the IRS audit on the results of operations was the measurement of deferred tax assets and liabilities influenced by the 2017 enactment of the Tax Cuts and Jobs Act income tax rate change discussed below. With the conclusion of the audit, there are no remaining federal unrecognized tax benefits affected by the rate differential which could impact income tax expense and the regulatory liability for income taxes in future periods.

State Income Tax Audits

As a result of income tax audit adjustments proposed by the Arkansas Department of Finance and Administration, an Entergy subsidiary in the non-utility operations business recorded a provision in third quarter 2022 for uncertain tax positions of approximately $21 million, which includes interest expense. In the third quarter 2024, Entergy and the Arkansas Department of Finance and Administration resolved the terms of the Arkansas

Department of Finance and Administration’s outstanding tax assessments related to the examination of the 2014 through 2018 tax years. The agreement resulted in a payment of tax of approximately $8 million by Entergy. As a result of the income tax audit adjustments and the reversal of a provision for uncertain tax positions, including amounts previously recorded in the third quarter 2022, Entergy Arkansas recorded a net reduction in income tax expense of approximately $18 million, which was offset by approximately $9 million of income tax expense recorded by other Entergy subsidiaries, resulting in a net reduction in income tax expense for Entergy of $9 million.

Other Tax Matters

Tax Cuts and Jobs Act (TCJA)

The most significant effect of the TCJA for Entergy and the Registrant Subsidiaries was the change in the federal corporate income tax rate from 35% to 21%, effective January 1, 2018. Entergy had regulatory liability balances of $1.2 billion and $1.0 billion as of December 31, 2024 and December 31, 2023, respectively. These liabilities were primarily associated with the re-measurement of deferred tax assets and liabilities due to the income tax rate change, subsequent amortization of excess ADIT, and payments to customers since the enactment of the TCJA. In addition to the protected and unprotected excess ADIT amounts, the net regulatory liability for income taxes includes other regulatory assets and liabilities for income taxes mainly related to AFUDC, as described in Note 1 to the financial statements.

Entergy’s regulatory liability for income taxes includes a gross-up at the applicable tax rate to account for the effect of excess ADIT on the ratemaking formula. The regulatory liability for income taxes reflects (1) the reduction of the net deferred tax liability resulting in excess ADIT, and (2) the tax gross-up of excess ADIT. The Registrant Subsidiaries’ December 31, 2024 and December 31, 2023 balance sheets reflect net regulatory liabilities for income taxes as follows:


	2024	2023
	(In Millions)
Entergy Arkansas	$418	$392
Entergy Louisiana	$355	$194
Entergy Mississippi	$181	$189
Entergy New Orleans	$15	$36
Entergy Texas	$94	$115
System Energy	$105	$107

Excess ADIT is generally classified into two categories: (1) the portion that is subject to the normalization requirements of the TCJA, referred to as “protected”, and (2) the portion that is not subject to such normalization provisions, referred to as “unprotected”. See Note 2 to the financial statements for discussion of Entergy Louisiana’s $106 million reversal of a regulatory liability, primarily associated with the Hurricane Isaac securitization, recognized in 2017 as a result of the TCJA, recorded in fourth quarter 2023.

The majority of the remaining unamortized Excess ADIT as of December 31, 2024 is classified as protected. The TCJA mandates the normalization method of accounting for income taxes for excess ADIT associated with public utility property. The TCJA specifies the use of the average rate assumption method (ARAM) to determine of the timing of the return of excess ADIT associated with such property. Under ARAM, the excess ADIT is reduced over the remaining life of the asset. Remaining asset lives vary for each Registrant Subsidiary, but the average life of public utility property is typically 30 years or longer. Entergy will amortize the protected portion of the excess ADIT in compliance with the normalization requirements.

During the second quarter 2018, the Registrant Subsidiaries began returning unprotected excess accumulated deferred income taxes, associated with the effects of the TCJA, to their customers through rate riders

and other mechanisms approved by their respective regulatory authorities. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This manner of regulatory accounting affects the effective tax rate for the period as compared to the statutory tax rate. The return of unprotected excess accumulated deferred income taxes was substantially completed by Entergy and the Registrant Subsidiaries during 2022.

Inflation Reduction Act of 2022

The Inflation Reduction Act of 2022, signed into law on August 16, 2022, significantly expanded federal tax incentives for clean energy production, including the extension of production tax credits to solar projects and certain qualified nuclear power facilities. Additionally, the Inflation Reduction Act of 2022 enacted a 1% excise tax on the buyback of public company stock and a new corporate alternative minimum tax. Entergy Arkansas has accrued approximately $5 million of solar production tax credits associated with the Walnut Bend Solar facility, the Driver Solar facility, and the West Memphis Solar facility in 2024. As the value of such credits is expected to be provided to customers, a regulatory liability has been recorded for all credits recognized in 2024.

Entergy Arkansas, Entergy Louisiana, and System Energy have the potential to generate zero-emission nuclear power production tax credits for electricity generated by their respective nuclear power facilities. Based on guidance provided by the U.S. Treasury and the IRS, the nuclear production tax credits will be calculated by multiplying the kWh of qualifying electricity by $0.003, with the value of the credits decreasing ratably, or phasing out, once the annual gross receipts from the sale of nuclear power exceed a certain threshold. If certain prevailing wage requirements are satisfied, the calculation of the credit, as described in the preceding sentence, is multiplied by a factor of five. Additional guidance is needed from the U.S. Treasury and/or the IRS to determine how the value of these credits will be calculated for power generated from nuclear facilities of rate-regulated utilities. Due to the uncertainty of value, if any, of credits Entergy Arkansas, Entergy Louisiana, or System Energy may receive, such credits have not been recognized for the nuclear power produced in 2024. Depending on the specifics of the expected additional guidance from the U.S. Treasury and/or the IRS, Entergy Arkansas, Entergy Louisiana, or System Energy may not recognize any production tax credits for their nuclear facilities, or they could recognize a significant amount each year, beginning for 2024. If the IRS does not issue any technical guidance before the due date of Entergy’s 2024 tax return, Entergy Arkansas, Entergy Louisiana, and System Energy will be required to reassess the determination of the availability of such credits based on any other additional information or regulatory requests. If credits are recognized in future periods, the value of such credits is expected to be provided to customers. As such, recognition of nuclear production tax credits is not expected to have a material effect on the results of operations of Entergy, Entergy Arkansas, Entergy Louisiana, or System Energy.

Tax Accounting Methods

Certain Entergy subsidiaries have elected to apply the mark-to-market method of accounting for income tax return purposes to wholesale power purchase agreements as appropriate under the Internal Revenue Code and U.S. Treasury Regulations. The mark-to-market tax gain or loss computed each year is based on an estimated fair market valuation which includes analyses of market prices and conditions.

In 2020, Entergy Texas elected mark-to-market income tax treatment for wholesale electric power purchase and sale agreements which resulted in a $2.5 billion deductible temporary difference.

Arkansas and Louisiana Corporate Income Tax Rate Changes

Since 2019, the State of Arkansas has enacted corporate income tax law changes that have phased in rate reductions from the former rate of 6.5% to the currently enacted rate of 4.3%. As a result of the rate reductions, Entergy Arkansas has recorded regulatory liabilities for income taxes of approximately $29 million, $26 million, and $15 million in 2024, 2023, and 2022, respectively, and a total of $32 million for years prior to 2022. The

regulatory liabilities include a tax gross-up related to the treatment of income taxes in the retail and wholesale ratemaking formulas and have been or are scheduled to be included in future rate mechanisms.

In November 2024, during the Louisiana Third Special Legislative Session of 2024, the Louisiana legislature enacted comprehensive tax reform measures that impact corporate income taxes through a reduction in rates to a flat 5.5% (from the current highest marginal rate of 7.5%), effective January 1, 2025. Accordingly, deferred tax assets and liabilities were adjusted, with associated regulatory assets and liabilities for income taxes, to reflect the new applicable state rate. As a result of the rate reduction, Entergy Louisiana and Entergy New Orleans recorded regulatory liabilities for income taxes of approximately $179 million and $9 million, respectively. The regulatory liabilities include a tax gross-up related to the treatment of income taxes in the retail and wholesale ratemaking formulas and are expected to be included in future rate mechanisms. In fourth quarter 2024, as a result of the net reduction in certain deferred tax assets and liabilities, Entergy Louisiana and Entergy New Orleans recorded an increase of income tax expense of approximately $16.3 million and $0.2 million, respectively, with an additional $12.1 million increase of income tax expense recorded by other Entergy subsidiaries.

Act 293 Securitizations

As described in Note 2 to the financial statements, Entergy Louisiana has implemented two separate securitization transactions authorized under Act 293 of the Louisiana Legislature’s Regular Session of 2021. The first transaction occurred in May of 2022 and the second occurred in March of 2023. Act 293 provides that the LURC contribute the net bond proceeds to a LURC-sponsored trust. Over the 15-year term of the Act 293 bonds, the respective storm trusts will make distributions to Entergy Louisiana, a beneficiary of the storm trusts, that will not be taxable to Entergy Louisiana. Additionally, Entergy Louisiana will not include the receipt of the system restoration charges in taxable income because the right to receive the system restoration charges has been granted directly to the LURC, and Entergy Louisiana only acts as an agent to collect those charges on behalf of the LURC.

Accordingly, the securitizations provided for a tax accounting permanent difference resulting in net reductions of income tax expense for Entergy Louisiana of approximately $133 million in March 2023 and $290 million in May 2022, both after taking into account a provision for uncertain tax positions. Entergy’s recognition of reduced income tax expense was offset by other tax changes resulting in a net reduction of income tax expense for Entergy of approximately $129 million in March 2023 and $283 million in May 2022, both after taking into account a provision for uncertain tax positions.

In recognition of its obligations described in LPSC ancillary orders issued as part of the securitization regulatory proceedings, Entergy Louisiana recorded regulatory liabilities of $103 million ($76 million net-of-tax) in first quarter 2023 and $224 million ($165 million net-of-tax) in second quarter 2022 to reflect its obligation to provide credits to its customers. See Note 2 to the financial statements for further discussion of the Entergy Louisiana March 2023 and May 2022 storm cost securitizations.

Income Tax Disclosure [Text Block]

INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Income taxes for Entergy for 2024, 2023, and 2022 consist of the following:


	2024	2023	2022
	(In Thousands)
Current:
Federal	$66,708	$60,639	$32,387
State	44,956	23,014	(3,091)
Total	111,664	83,653	29,296
Deferred and non-current - net	281,190	(768,941)	(67,520)
Investment tax credits - net	(11,827)	(5,247)	(754)
Income taxes	$381,027	($690,535)	($38,978)

Income taxes for the Registrant Subsidiaries for 2024, 2023, and 2022 consist of the following:


2024	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	($10,558)	($79,519)	$38,680	($8,022)	$8,281	($5,527)
State	(2,275)	1,709	2,407	5,331	5,468	(396)
Total	(12,833)	(77,810)	41,087	(2,691)	13,749	(5,923)
Deferred and non-current - net	88,637	307,835	39,608	6,381	52,702	39,409
Investment tax credits - net	(1,230)	(4,616)	(380)	(848)	(767)	(3,983)
Income taxes	$74,574	$225,409	$80,315	$2,842	$65,684	$29,503


2023	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	$33,100	($142,253)	$20,328	($99,343)	$2,851	$337
State	(4,201)	(6,397)	4,142	(5,854)	3,719	(1,570)
Total	28,899	(148,650)	24,470	(105,197)	6,570	(1,233)
Deferred and non-current - net	(126,878)	(52,451)	30,690	(84,744)	57,066	31,005
Investment tax credits - net	(1,231)	(4,680)	(796)	(32)	(764)	2,260
Income taxes	($99,210)	($205,781)	$54,364	($189,973)	$62,872	$32,032


2022	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Current:
Federal	$8,015	($79,079)	$9,242	$1,074	$37,471	($11,720)
State	(1,066)	(1,773)	(6,486)	6,221	2,260	581
Total	6,949	(80,852)	2,756	7,295	39,731	(11,139)
Deferred and non-current - net	74,802	(77,223)	48,443	16,814	11,520	(83,369)
Investment tax credits - net	(855)	(4,778)	3,665	168	(630)	1,680
Income taxes	$80,896	($162,853)	$54,864	$24,277	$50,621	($92,828)

Total income taxes for Entergy differ from the amounts computed by applying the statutory income tax rate to income before income taxes. The reasons for the differences for the years 2024, 2023, and 2022 are:


	2024		2023		2022
	(In Thousands)
Net income attributable to Entergy Corporation	$1,055,590		$2,356,536		$1,103,166
Preferred dividend requirements of subsidiaries and noncontrolling interests	5,594		5,774		(6,028)
Consolidated net income	1,061,184		2,362,310		1,097,138
Income taxes	381,027		(690,535)		(38,978)
Income before income taxes	$1,442,211		$1,671,775		$1,058,160

Income taxes computed at statutory rate (21%)	$302,864		$351,073		$222,214
Increases (reductions) in tax resulting from:
State income taxes net of federal income tax effect	81,377		70,144		61,368
Regulatory differences - utility plant items	(30,288)		(27,901)		(32,143)
Equity component of AFUDC	(27,343)		(20,172)		(14,156)
Amortization of investment tax credits	(8,808)		(7,978)		(7,740)
Flow-through / permanent differences	33		(1,374)		1,011
Amortization of deficient/(excess) ADIT (a)	19,169		9,102		(34,899)
IRS audit resolution (b)	—		(842,769)		—
Reversal of regulatory liability (c)	—		(105,649)		—
Entergy Louisiana securitization (d)	—		(129,034)		(282,620)
System Energy sale-leaseback order (e)	—		—		12,662
State audit resolution (f)	(9,057)		—		—
State rate change (g)	28,636		—		—
Provision for uncertain tax positions	21,487		18,884		34,423
Valuation allowance	(780)		(8,697)		(2,754)
Other - net	3,737		3,836		3,656
Total income taxes as reported	$381,027		($690,535)		($38,978)
Effective Income Tax Rate	26.4	%	(41.3	%)	(3.7	%)