Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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

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,
	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	%

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,
	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

______________________

(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)

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, 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.