Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The Registrants' total Income Tax Expense varied from the statutory federal income tax rate for the following reasons:


	2022			2021			2020
DTE Energy	(In millions)
Income Before Income Taxes	$	1,112		$	656		$	1,082
Income tax expense at 21% statutory rate	$	234		$	138		$	227
TCJA regulatory liability amortization	(155)			(103)			(76)
Production tax credits	(91)			(138)			(121)
Net operating loss carryback	(5)			—			(34)

State deferred tax remeasurement due to separation of DT Midstream, net of federal benefit	—			(85)			—
Enactment of West Virginia income tax legislation, net of federal benefit	—			8			—
Deferred intercompany gain	—			9			—
Valuation allowance on charitable contribution carryforwards	9			18			3
State and local income taxes, excluding items above, net of federal benefit	42			30			47
Other, net	(5)			(7)			(9)
Income Tax Expense (Benefit)	$	29		$	(130)		$	37
Effective income tax rate	2.6		%	(19.9)		%	3.4		%


	2022			2021			2020
DTE Electric	(In millions)
Income Before Income Taxes	$	981		$	970		$	887
Income tax expense at 21% statutory rate	$	206		$	204		$	186
TCJA regulatory liability amortization	(145)			(73)			(62)
Production tax credits	(83)			(70)			(55)




State and local income taxes, excluding items above, net of federal benefit	56			54			50
Other, net	(8)			(11)			(10)
Income Tax Expense	$	26		$	104		$	109
Effective income tax rate	2.7		%	10.7		%	12.3		%

Components of the Registrants' Income Tax Expense were as follows:


	2022		2021		2020
DTE Energy	(In millions)
Current income tax expense (benefit)
Federal	$	(13)	$	(33)	$	(249)
State and other income tax	(2)		(12)		4
Total current income taxes	(15)		(45)		(245)
Deferred income tax expense (benefit)
Federal	(13)		(42)		227
State and other income tax	57		(43)		55
Total deferred income taxes	44		(85)		282


	$	29	$	(130)	$	37


	2022		2021		2020
DTE Electric	(In millions)
Current income tax expense (benefit)
Federal	$	1	$	(11)	$	15
State and other income tax	—		(7)		5
Total current income taxes	1		(18)		20
Deferred income tax expense (benefit)
Federal	(46)		47		30
State and other income tax	71		75		59
Total deferred income taxes	25		122		89


	$	26	$	104	$	109

The Registrants' deferred tax assets (liabilities) were comprised of the following at December 31:


	DTE Energy				DTE Electric
	2022		2021		2022		2021
	(In millions)
Property, plant, and equipment	$	(3,897)	$	(3,826)	$	(3,188)	$	(3,164)
Regulatory assets and liabilities	(493)		(124)		(589)		(230)
Tax credit carry-forwards	1,378		1,260		487		379
Pension and benefits	111		102		103		127
Federal net operating loss carry-forward	266		199		58		5


State and local net operating loss carry-forwards	97		73		38		15
Investments in equity method investees	65		59		—		(1)
Other	137		145		145		128
	(2,336)		(2,112)		(2,946)		(2,741)
Less: Valuation allowance	(58)		(51)		—		—
Long-term deferred income tax liabilities	$	(2,394)	$	(2,163)	$	(2,946)	$	(2,741)

Deferred income tax assets	$	2,317	$	2,224	$	1,081	$	988
Deferred income tax liabilities	(4,711)		(4,387)		(4,027)		(3,729)
	$	(2,394)	$	(2,163)	$	(2,946)	$	(2,741)

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the Registrants is as follows:


	2022		2021		2020
DTE Energy	(In millions)
Balance at January 1	$	10	$	10	$	10
Additions for tax positions of prior years	5		—		—
Reductions for tax positions of prior years	(2)		—		—



Balance at December 31	$	13	$	10	$	10


	2022		2021		2020
DTE Electric	(In millions)
Balance at January 1	$	13	$	13	$	13
Additions for tax positions of prior years	—		—		—
Reductions for tax positions of prior years	—		—		—



Balance at December 31	$	13	$	13	$	13