Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of income taxes are as follows:

	NEE						FPL
	Years Ended December 31,						Years Ended December 31,
	2023		2022		2021		2023		2022		2021
	(millions)
Federal:
Current	$	507	$	11	$	(26)	$	990	$	3	$	85
Deferred	368		497		311		(179)		684		545
Total federal	875		508		285		811		687		630
State:
Current	161		41		(62)		294		2		1
Deferred	(30)		37		125		18		258		207
Total state	131		78		63		312		260		208
Total income taxes	$	1,006	$	586	$	348	$	1,123	$	947	$	838

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,
	2023		2022		2021		2023		2022		2021
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	1.4		1.6		1.6		4.3		4.4		4.1
Taxes attributable to noncontrolling interests	3.0		4.9		5.0		—		—		—
Renewable energy tax credits	(8.3)		(6.8)		(11.3)		(2.0)		(1.1)		(0.7)
Amortization of deferred regulatory credit	(2.5)		(4.8)		(4.4)		(3.2)		(4.0)		(3.5)
Other – net	(0.8)		(0.6)		(0.9)		(0.3)		0.1		(0.2)
Effective income tax rate	13.8	%	15.3	%	11.0	%	19.8	%	20.4	%	20.7	%

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,
	2023		2022		2023		2022
	(millions)
Deferred tax liabilities:
Property-related	$	10,910	$	10,144	$	8,563	$	8,177
Pension	609		552		470		439
Investments in partnerships and joint ventures	2,459		3,144		3		3
Other	2,126		2,666		1,431		1,914
Total deferred tax liabilities	16,104		16,506		10,467		10,533
Deferred tax assets and valuation allowance:
Decommissioning reserves	314		306		314		306
Net operating loss carryforwards	262		346		2		19
Tax credit carryforwards	3,674		4,905		—		123
ARO and accrued asset removal costs	227		199		111		107
Regulatory liabilities	1,237		1,332		1,212		1,308
Other	714		822		288		295
Valuation allowance(a)	(240)		(257)		—		—
Net deferred tax assets	6,188		7,653		1,927		2,158
Net deferred income taxes	$	9,916	$	8,853	$	8,540	$	8,375

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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,
	2023		2022		2023		2022
			(millions)
Noncurrent other assets	$	226	$	219	$	2	$	1
Deferred income taxes – noncurrent liabilities	(10,142)		(9,072)		(8,542)		(8,376)
Net deferred income taxes	$	(9,916)	$	(8,853)	$	(8,540)	$	(8,375)

The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards at December 31, 2023 are as follows:

	Amount			Expiration Dates
	(millions)
Net operating loss carryforwards:
Federal	$	1		Indefinite
State	239		(a)	2024 – 2043
Foreign	22		(b)	2028 – 2043
Net operating loss carryforwards	$	262
Tax credit carryforwards:
Federal	$	3,324		2030 – 2045
State	346		(c)	2024 – 2044
Foreign	4			2034 – 2043
Tax credit carryforwards	$	3,674

______________________

(a)Includes $106 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 $193 million of renewable energy tax credit carryforwards with an indefinite expiration period.