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Income Taxes
6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
 
Effective Tax Rate

IPALCO’s effective combined state and federal income tax rate was 20.7% and 20.6% for the three and six months ended June 30, 2021, respectively, as compared to 21.3% and 21.3% for the three and six months ended June 30, 2020, respectively. The decrease in the effective tax rate versus the comparable periods was primarily due to the impact of the reversal of excess deferred income taxes as a percentage of pre-tax income. The rates for the three and six months ended June 30, 2021 are lower than the combined federal and state statutory rate of 25.01% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Indiana, which was partially offset by the net tax expense related to the amortization of allowance for equity funds used during construction.