XML 186 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
5. Income Taxes

Reconciliations of income tax expense (benefit) for the periods ended September 30 are as follows.
(PPL)
Three MonthsNine Months
2025202420252024
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$84 $57 $240 $189 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit20 20 48 48 
Income tax credits(4)(2)(9)(4)
Utility rate-making tax adjustments (a)(6)(4)(20)(14)
Amortization of excess deferred federal and state income taxes (13)(13)(34)(33)
Other(1)— 4 3 
Total increase (decrease)(4)1 (11)— 
Total income tax expense (benefit)$80 $58 $229 $189 

(a)     Primarily consists of tax impacts of AFUDC equity and related depreciation across PPL's regulated utility subsidiaries and flow through tax impacts of utility ratemaking. Flow through occurs when the regulator excludes deferred tax expense or benefit from recoverable costs when determining income tax expense.

(PPL Electric)  
Three MonthsNine Months
2025202420252024
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$44 $40 $132 $122 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit13 13 40 39 
Utility rate-making tax adjustments (a)(5)(2)(17)(12)
Amortization of excess deferred federal and state income taxes(2)(3)(7)(8)
Other(1)(1)(2)— 
Total increase (decrease)5 7 14 19 
Total income tax expense (benefit) $49 $47 $146 $141 

(a)     Primarily consists of tax impacts of AFUDC equity and related depreciation and flow through tax impacts of Pennsylvania utility ratemaking. Flow through occurs when the regulator excludes deferred tax expense or benefit from recoverable costs when determining income tax expense.

(LG&E)  
 Three MonthsNine Months
 2025202420252024
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$22 $20 $64 $62 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit4 4 12 11 
Amortization of excess deferred federal and state income taxes(3)(3)(10)(9)
Utility rate-making tax adjustments (a)(1)(1)(3)(1)
Other(1)— (2)(2)
Total increase (decrease)(1)— (3)(1)
Total income tax expense (benefit)$21 $20 $61 $61 

(a)     Primarily consists of tax impacts of AFUDC equity and related depreciation and flow through tax impacts of Kentucky utility ratemaking. Flow through occurs when the regulator excludes deferred tax expense or benefit from recoverable costs when determining income tax expense.
(KU)  
 Three MonthsNine Months
 2025202420252024
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$29 $26 $82 $74 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit5 4 15 13 
Amortization of excess deferred federal and state income taxes(4)(4)(13)(13)
Utility rate-making tax adjustments (a)(1)(1)(3)(1)
Other(1)(1)(3)(3)
Total increase (decrease)(1)(2)(4)(4)
Total income tax expense (benefit)$28 $24 $78 $70 

(a)     Primarily consists of tax impacts of AFUDC equity and related depreciation and flow through tax impacts of Kentucky utility ratemaking. Flow through occurs when the regulator excludes deferred tax expense or benefit from recoverable costs when determining income tax expense.

Other

One Big Beautiful Bill Act (All Registrants)

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act. The Registrants are continuing to review the law to assess any material impacts to the financial statements.

Additionally, on July 7, 2025, President Trump issued an Executive Order directing the Treasury to take action to strictly enforce the termination of clean electricity tax credits under IRC Sections 45Y and 48E for wind and solar. On August 15, 2025, the IRS issued Notice 2025-42, primarily tightening the rules regarding when a solar project is considered to have commenced construction. As of September 30, 2025, PPL is not expected to be significantly impacted by this or anticipated future guidance.