Income Taxes

12 Months Ended

Dec. 31, 2025

Income Taxes

Income Taxes

16. Income Taxes

Effective January 1, 2025, we adopted ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Taxes Disclosures prospectively.

The difference between the book basis and the tax basis of our net assets, not directly subject to income taxes, is as follows:

	Icahn Enterprises
	December 31,
	2025		2024
		(in millions)
Book basis of net assets	$	1,950	$	2,449
Book/tax basis difference		(706)		(366)
Tax basis of net assets	$	1,244	$	2,083

Income (loss) from continuing operations before income tax benefit (expense) is as follows:

	Year Ended December 31,
	2025		2024		2023
	(in millions)
Domestic	$	(337)	$	(570)	$	(943)
International		(8)		3		21
	$	(345)	$	(567)	$	(922)

Income tax benefit (expense) attributable to continuing operations using the updated requirements of ASU 2023-09 for 2025 is as follows:

	December 31,
		2025
		(in millions)
Current:
Domestic Federal		$	1
Domestic State			(3)
International			(2)
Total current			(4)
Deferred:
Domestic Federal			—
Domestic State			15
International			8
Total deferred			23
		$	19

Income tax benefit (expense) attributable to continuing operations prior to the adoption of the guidance in ASU 2023-09 is as follows:

	December 31,
	2024		2023
Current:
Domestic	$	(20)	$	(130)
International		9		(8)
Total current		(11)		(138)
Deferred:
Domestic		43		41
International		(7)		7
Total deferred		36		48
	$	25	$	(90)

The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09.

	Year Ended December 31,
		2025
		Amount (in millions)	Percent
Income tax benefit at U.S. statutory rate	$	72	21	%
Tax effect from:
Foreign tax effects:
Aruba
Changes in Valuation allowance		5	1.51	%
Other		—	0
Other foreign jurisdictions		(2)	(0.62)	%
State and local income taxes, net of federal benefit (1)		13	3.60	%
Changes in Valuation allowance		(8)	(2.26)	%
Nontaxable or nondeductible items:
Non-controlling interest		13	3.81	%
Income not subject to taxation		(75)	(21.81)	%
Non-deductible executive compensation		(3)	(0.83)	%
Uncertain tax positions
Other adjustments:
Dividends received		2	0.52	%
Other		2	0.39	%
Income tax benefit	$	19	5.31	%

(1) In 2025, the states that contributed to the majority (greater than 50%) of the tax effect in this category are Kansas, Tennessee and Oklahoma

A reconciliation of the income tax benefit (expense) calculated at the federal statutory rate to income tax benefit (expense) on continuing operations prior to the adoption of the guidance in ASU-2023-09 is as follows:

	2024		2023
Income tax benefit at U.S. statutory rate	$	119	$	193
Tax effect from:
Valuation allowance		(68)		(1)
Non-controlling interest		8		23
Credits and incentives		19		26
Uncertain tax positions		5		17
Deconsolidation		—		23
Tax gain not on books		—		(83)
Dividends received		(4)		(20)
Income not subject to taxation		(91)		(239)
State taxes		32		(26)
Other		5		(3)
Income tax benefit (expense)	$	25	$	(90)

Disclosed below is a summary of net income taxes paid/(refunded) by jurisdiction pursuant to the disclosure requirements of ASU No. 2023-09 for the year ended December 31, 2025:

	December 31,
	2025
	(in millions)
United States Federal	$	(7)
State:
Kansas		(3)
Tennessee		2
Other		1
Foreign:
Italy		1
	$	(6)

The tax effect of significant differences representing deferred tax assets (liabilities) (the difference between financial statement carrying value and the tax basis of assets and liabilities) is as follows:

	December 31,
	2025		2024
	(in millions)
Deferred tax assets:
Contingent liabilities	$	15	$	56
Net operating loss		1,000		962
Tax credits		64		54
Capital loss		140		241
Leases		123		132
Investment in partnerships		81		135
Other		76		87
Total deferred tax assets		1,499		1,667
Less: Valuation allowance		(722)		(908)
Net deferred tax assets	$	777	$	759
Deferred tax liabilities:
Property, plant and equipment	$	(336)	$	(364)
Intangible assets		(55)		(60)
Investment in partnerships		(173)		(161)
Investment in U.S. subsidiaries		(163)		(163)
Leases		(118)		(129)
Other		(81)		(53)
Total deferred tax liabilities		(926)		(930)
	$	(149)	$	(171)

We recorded deferred tax assets and deferred tax liabilities of $165 million and $314 million, respectively, as of December 31, 2025 and $160 million and $331 million, respectively, as of December 31, 2024.

We analyze all positive and negative evidence to consider whether it is more likely than not that all of the deferred tax assets will be realized. Projected future income, tax planning strategies and the expected reversal of deferred tax liabilities are considered in making this assessment. As of December 31, 2025 we had a valuation allowance of

approximately $722 million primarily related to tax loss and credit carryforwards and other deferred tax assets. The current and future provisions for income taxes may be significantly impacted by changes to valuation allowances. These allowances will be maintained until it is more likely than not that the deferred tax assets will be realized. For the year ended December 31, 2025, the valuation allowance on deferred tax assets decreased $186 million. The decrease was primarily attributable to changes in capital loss carryforwards.

At December 31, 2025, American Entertainment Properties Corp. (“AEPC”), a wholly-owned corporate subsidiary of Icahn Enterprises, which includes all or parts of our Automotive, Food Packaging, Pharma, Home Fashion and Real Estate segments had U.S. federal net operating loss carryforwards of approximately $3.2 billion with expiration dates from 2026 through unlimited carryforward periods. Additionally, AEPC and its corporate subsidiaries had foreign net operating loss carryforwards of $23 million with an unlimited carryforward period.

At December 31, 2025, CVR Energy had state income tax credits of $33 million, which are available to reduce future state income taxes. These credits, if not used, will begin expiring in 2040.

As of December 31, 2025, we have not provided taxes on approximately $141 million of undistributed earnings in foreign subsidiaries which are deemed to be indefinitely reinvested. If at some future date these earnings cease to be permanently reinvested, we may be subject to foreign income and withholding taxes upon repatriation of such amounts. An estimate of the tax liability that would be incurred upon repatriation of foreign earnings is not practicable to determine.

Accounting for Uncertainty in Income Taxes

A summary of the changes in the gross amounts of unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023 are as follows:

	Year Ended December 31,
	2025		2024		2023
	(in millions)
Balance at January 1	$	9	$	10	$	27
Increase for currency translation		1		—		—
Decrease for statute of limitation expiration		—		(1)		(17)
Balance at December 31	$	10	$	9	$	10

At December 31, 2025, 2024 and 2023, we had unrecognized tax benefits of $10 million, $9 million and $10 million, respectively. Of these totals, $10 million, $3 million and $10 million represent the amount of unrecognized tax benefits that if recognized, would affect the annual effective tax rate in the respective periods. The total unrecognized tax benefits differ from the amount which would affect the effective tax rate primarily due to the impact of valuation allowances.

We recognize interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense. We recorded less than $1 million, less than $1 million and $4 million as of December 31, 2025, 2024 and 2023, respectively, in liabilities for tax related net interest and penalties in our consolidated balance sheets. Income tax expense (benefit) related to interest and penalties were $ 1 million, $(4) million and $(2) million for the years December 31, 2025, 2024 and 2023, respectively. We or certain of our subsidiaries file income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various non-U.S. jurisdictions. We and our subsidiaries are no longer subject to U.S. federal tax examinations for years before 2021 or state and local examinations for years before 2020, with limited exceptions.