Income Taxes

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

6. INCOME TAXES

For continuing operations, including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to DESC’s effective income tax rate as follows:

Six Months Ended June 30,	2025			2024
U.S. statutory rate		21.0	%		21.0	%
Increases (reductions) resulting from:
State taxes, net of federal benefit		7.7			4.0
Reversal of excess deferred income taxes		(2.7	)		(5.7	)
Allowance for equity funds used during construction		—			(0.7	)
Remeasurements and settlements of uncertain tax positions		(9.7	)		—
Other, net		0.1			0.1
Effective tax rate		16.4	%		18.7	%

As of June 30, 2025, DESC’s effective tax rate reflects an income tax net benefit of $18 million reflecting a $30 million remeasurement of an unrecognized tax benefit partially deferred to regulatory liabilities. See Note 7 to the Consolidated Financial Statements in DESC's Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of these unrecognized tax benefits.