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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The components of income taxes are as follows:


	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2022		2021		2020		2022		2021		2020
	(millions)
Federal:
Current	$	11	$	(26)	$	105	$	3	$	85	$	16
Deferred	497		311		(148)		684		545		474
Total federal	508		285		(43)		687		630		490
State:
Current	41		(62)		18		2		1		32
Deferred	37		125		69		258		207		156
Total state	78		63		87		260		208		188
Total income taxes	$	586	$	348	$	44	$	947	$	838	$	678

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

A reconciliation between the effective income tax rates and the applicable statutory rate is as follows:


	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2022		2021		2020		2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit	1.6		1.6		2.8		4.4		4.1		4.2

Taxes attributable to noncontrolling interests	4.9		5.0		4.8		—		—		—

PTCs and ITCs	(6.8)		(11.3)		(12.7)		(1.1)		(0.7)		(0.6)
Amortization of deferred regulatory credit	(4.8)		(4.4)		(7.2)		(4.0)		(3.5)		(4.9)
Foreign operations(a)	0.1		0.2		(2.4)		—		—		—


Other – net	(0.7)		(1.1)		(4.5)		0.1		(0.2)		(0.7)
Effective income tax rate	15.3	%	11.0	%	1.8	%	20.4	%	20.7	%	19.0	%

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(a)The 2020 gain on sale of the Spain solar projects was not taxable for federal and state income tax purposes (see Note 1 – Disposal of Businesses/Assets and Sale of Noncontrolling Ownership Interests).

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,
	2022		2021		2022		2021
	(millions)
Deferred tax liabilities:
Property-related	$	10,144	$	10,018	$	8,177	$	7,831
Pension	552		564		439		425




Investments in partnerships and joint ventures	3,144		2,783		3		3
Other	2,666		2,092		1,914		1,232
Total deferred tax liabilities	16,506		15,457		10,533		9,491
Deferred tax assets and valuation allowance:
Decommissioning reserves	306		296		306		296

Net operating loss carryforwards	346		330		19		2
Tax credit carryforwards	4,905		4,646		123		182
ARO and accrued asset removal costs	199		199		107		126
Regulatory liabilities	1,332		1,421		1,308		1,397
Other	822		733		295		351
Valuation allowance(a)	(257)		(282)		—		—
Net deferred tax assets	7,653		7,343		2,158		2,354
Net deferred income taxes	$	8,853	$	8,114	$	8,375	$	7,137

______________________

(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,
	2022		2021		2022		2021
			(millions)

Noncurrent other assets	$	219	$	196	$	1	$	—

Deferred income taxes – noncurrent liabilities	(9,072)		(8,310)		(8,376)		(7,137)
Net deferred income taxes	$	(8,853)	$	(8,114)	$	(8,375)	$	(7,137)

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 at December 31, 2022 are as follows:


	Amount			Expiration Dates
	(millions)
Net operating loss carryforwards:
Federal	$	11	(a)	2033 – 2037
State	315			2022 – 2042
Foreign	20		(b)	2026 – 2042
Net operating loss carryforwards	$	346
Tax credit carryforwards:
Federal	$	4,555		2028 – 2042
State	345		(c)	2023 – 2039
Foreign	5			2034 – 2042
Tax credit carryforwards	$	4,905

______________________

(a)Includes $9 million of net operating loss carryforwards with an indefinite expiration period.

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

(c)Includes $191 million of ITC carryforwards with an indefinite expiration period.