Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Entity Information [Line Items]

Schedule Of Federal And State Income Taxed Charged To Income

Federal and state income taxes charged to income are as follows: 

	2021		2020		2019
	(In Thousands)
Components of income tax expense:
Current income taxes:
Federal	$	28,100	$	19,489	$	17,229
State	8,218		6,249		3,022
Total current income taxes	36,318		25,738		20,251
Deferred income taxes:
Federal	(7,286)		323		7,547
State	(91)		2,531		7,745
Total deferred income taxes	(7,377)		2,854		15,292
Net amortization of investment credit	—		—		(15)
Total income tax expense	$	28,941	$	28,592	$	35,528

Schedule Of Effective Income Tax Rate

The reasons for the difference, stated as a percentage of pretax income, are as follows: 

	2021		2020		2019
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax benefit	4.0	%	4.2	%	4.4	%
Depreciation flow through and amortization	(6.3)	%	(6.8)	%	(5.7)	%
Additional funds used during construction - equity	0.4	%	1.0	%	0.2	%
Other – net	0.4	%	1.2	%	1.3	%
Effective tax rate	19.5	%	20.6	%	21.2	%

Schedule Of Deferred Tax Assets And Liabilities

The significant items comprising IPALCO’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2021 and 2020 are as follows:

	2021		2020
	(In Thousands)
Deferred tax liabilities:
Relating to utility property, net	$	369,783	$	408,291
Regulatory assets recoverable through future rates	126,531		82,783
Other	14,326		5,485
Total deferred tax liabilities	510,640		496,559
Deferred tax assets:
Investment tax credit	7		6
Regulatory liabilities including ARO	200,948		197,657
Employee benefit plans	—		3,866
Other	18,958		19,316
Total deferred tax assets	219,913		220,845
Deferred income tax liability – net	$	290,727	$	275,714

Reconciliation Of Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019: 

	2021		2020		2019
	(In Thousands)
Unrecognized tax benefits at January 1	$	7,368	$	7,056	$	7,056
Gross increases – current period tax positions	—		312		—
Gross decreases – prior period tax positions	(7,368)		—		—
Unrecognized tax benefits at December 31	$	—	$	7,368	$	7,056

Indianapolis Power And Light Company

Entity Information [Line Items]

Schedule Of Federal And State Income Taxed Charged To Income

Federal and state income taxes charged to income are as follows:

	2021		2020		2019
	(In Thousands)
Components of income tax expense:
Current income taxes:
Federal	$	36,353	$	28,395	$	23,941
State	10,325		8,661		4,370
Total current income taxes	46,678		37,056		28,311
Deferred income taxes:
Federal	(7,283)		503		7,578
State	(90)		2,576		7,556
Total deferred income taxes	(7,373)		3,079		15,134
Net amortization of investment credit	—		—		(15)
Total income tax expense	$	39,305	$	40,135	$	43,430

Schedule Of Effective Income Tax Rate

The reasons for the difference, stated as a percentage of pretax income, are as follows:

	2021		2020		2019
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax benefit	4.0	%	4.2	%	4.4	%
Depreciation flow through and amortization	(4.9)	%	(5.1)	%	(4.7)	%
Additional funds used during construction - equity	0.3	%	0.7	%	0.2	%
Other – net	0.3	%	1.0	%	0.8	%
Effective tax rate	20.7	%	21.8	%	21.7	%

Schedule Of Deferred Tax Assets And Liabilities

The significant items comprising AES Indiana’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2021 and 2020 are as follows: 

	2021		2020
	(In Thousands)
Deferred tax liabilities:
Relating to utility property, net	$	369,783	$	408,291
Regulatory assets recoverable through future rates	126,531		82,783
Other	18,283		5,323
Total deferred tax liabilities	514,597		496,397
Deferred tax assets:
Investment tax credit	7		6
Regulatory liabilities including ARO	205,099		197,657
Employee benefit plans	—		3,866
Other	9,313		5,069
Total deferred tax assets	214,419		206,598
Deferred income tax liability – net	$	300,178	$	289,799

Reconciliation Of Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019:

	2021		2020		2019
	(In Thousands)
Unrecognized tax benefits at January 1	$	7,368	$	7,056	$	7,056
Gross increases – current period tax positions	—		312		—
Gross decreases – prior period tax positions	(7,368)		—		—
Unrecognized tax benefits at December 31	$	—	$	7,368	$	7,056