Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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


	2023			2022			2021
DTE Energy	(In millions)
Income Before Income Taxes	$	1,566		$	1,112		$	656
Income tax expense at 21% statutory rate	$	329		$	234		$	138
Production tax credits	(91)			(91)			(138)
TCJA regulatory liability amortization	(63)			(155)			(103)
Investment tax credits	(44)			(1)			(3)
Enactment of state income tax legislation, net of federal benefit	(1)			—			8
State deferred tax remeasurement due to separation of DT Midstream, net of federal benefit	—			—			(85)

Valuation allowance on charitable contribution carryforwards	—			9			18
State and local income taxes, excluding items above, net of federal benefit	59			42			30
Other, net	(20)			(9)			5
Income Tax Expense (Benefit)	$	169		$	29		$	(130)
Effective income tax rate	10.8		%	2.6		%	(19.9)		%


	2023			2022			2021
DTE Electric	(In millions)
Income Before Income Taxes	$	850		$	981		$	970
Income tax expense at 21% statutory rate	$	179		$	206		$	204
Production tax credits	(79)			(83)			(70)
TCJA regulatory liability amortization	(53)			(145)			(73)




State and local income taxes, excluding items above, net of federal benefit	45			56			54
Other, net	(14)			(8)			(11)
Income Tax Expense	$	78		$	26		$	104
Effective income tax rate	9.2		%	2.7		%	10.7		%

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


	2023		2022		2021
DTE Energy	(In millions)
Current income tax benefit
Federal	$	(10)	$	(13)	$	(33)
State and other income tax	(2)		(2)		(12)
Total current income taxes	(12)		(15)		(45)
Deferred income tax expense (benefit)
Federal	103		(13)		(42)
State and other income tax	78		57		(43)
Total deferred income taxes	181		44		(85)


	$	169	$	29	$	(130)


	2023		2022		2021
DTE Electric	(In millions)
Current income tax expense (benefit)
Federal	$	1	$	1	$	(11)
State and other income tax	(5)		—		(7)
Total current income taxes	(4)		1		(18)
Deferred income tax expense (benefit)
Federal	19		(46)		47
State and other income tax	63		71		75
Total deferred income taxes	82		25		122


	$	78	$	26	$	104

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


	DTE Energy				DTE Electric
	2023		2022		2023		2022
	(In millions)
Property, plant, and equipment	$	(3,423)	$	(3,897)	$	(2,693)	$	(3,188)
Regulatory assets and liabilities	(1,158)		(493)		(1,314)		(589)
Tax credit carryforwards	1,519		1,378		572		487
Pension and benefits	77		111		69		103
Federal net operating loss carryforward	202		266		71		58


State and local net operating loss carryforwards	76		97		49		38
Investments in equity method investees	(33)		65		—		—
Other	130		137		137		145
	(2,610)		(2,336)		(3,109)		(2,946)
Less: Valuation allowance	(39)		(58)		—		—
Long-term deferred income tax liabilities	$	(2,649)	$	(2,394)	$	(3,109)	$	(2,946)

Deferred income tax assets	$	2,415	$	2,317	$	1,202	$	1,081
Deferred income tax liabilities	(5,064)		(4,711)		(4,311)		(4,027)
	$	(2,649)	$	(2,394)	$	(3,109)	$	(2,946)

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


	2023		2022		2021
DTE Energy	(In millions)
Balance at January 1	$	13	$	10	$	10
Additions for tax positions of prior years	2		5		—
Reductions for tax positions of prior years	(5)		(2)		—

Settlements	(10)		—		—

Balance at December 31	$	—	$	13	$	10