Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

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

	2024			2023			2022
DTE Energy	(In millions)
Income Before Income Taxes	$	1,370		$	1,566		$	1,112
Income tax expense at 21% statutory rate	$	288		$	329		$	234
Production tax credits(a)(b)	(169)			(91)			(91)
Investment tax credits(a)	(128)			(44)			(1)
TCJA regulatory liability amortization	(66)			(63)			(155)
AFUDC equity	(17)			(7)			(5)
State and local income taxes, net of federal benefit	59			59			42
Other, net	(1)			(14)			5
Income Tax Expense (Benefit)	$	(34)		$	169		$	29
Effective income tax rate	(2.5)		%	10.8		%	2.6		%

_______________________________________

(a)PTCs and ITCs include $231 million of certain eligible credits generated in 2023 and 2024, net of discount, that were sold in 2024 under the transferability provisions of the Inflation Reduction Act of 2022. Cash received related to the transfer of tax credits is included in Cash paid (received) for: Income taxes within the supplemental disclosures of cash flow information on the DTE Energy Consolidated Statements of Cash Flows. These tax credit sales are subject to standard indemnifications up to the cash received. Payments under these indemnifications are considered remote.

(b)Includes nuclear PTCs of $89 million, net of discount, recognized in 2024. The nuclear PTCs continue to be the subject of additional guidance expected to be issued from the U.S. Department of the Treasury and IRS that may materially impact the total amount of the benefits we receive. The benefit of these PTCs is provided to customers through the regulatory construct of the PSCR mechanism.

	2024			2023			2022
DTE Electric	(In millions)
Income Before Income Taxes	$	1,040		$	850		$	981
Income tax expense at 21% statutory rate	$	218		$	179		$	206
Production tax credits(a)(b)	(162)			(79)			(83)
Investment tax credits(a)	(70)			(1)			(1)
TCJA regulatory liability amortization	(55)			(53)			(145)
AFUDC equity	(16)			(7)			(4)
State and local income taxes, net of federal benefit	57			45			56
Other, net	(4)			(6)			(3)
Income Tax Expense (Benefit)	$	(32)		$	78		$	26
Effective income tax rate	(3.1)		%	9.2		%	2.7		%

_______________________________________

(a)PTCs and ITCs include $231 million of certain eligible credits generated in 2023 and 2024, net of discount, that were sold in 2024 under the transferability provisions of the Inflation Reduction Act of 2022. Cash received related to the transfer of tax credits is included in Cash paid (received) for: Income taxes within the supplemental disclosures of cash flow information on the DTE Energy Consolidated Statements of Cash Flows. These tax credit sales are subject to standard indemnifications up to the cash received. Payments under these indemnifications are considered remote.

(b)Includes nuclear PTCs of $89 million, net of discount, recognized in 2024. The nuclear PTCs continue to be the subject of additional guidance expected to be issued from the U.S. Department of the Treasury and IRS that may materially impact the total amount of the benefits we receive. The benefit of these PTCs is provided to customers through the regulatory construct of the PSCR mechanism.

Schedule of Components of Income Tax Expense (Benefit)

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

	2024		2023		2022
DTE Energy	(In millions)
Current income tax benefit
Federal	$	(226)	$	(10)	$	(13)
State and other income tax	(2)		(2)		(2)
Total current income taxes	(228)		(12)		(15)
Deferred income tax expense (benefit)
Federal	117		103		(13)
State and other income tax	77		78		57
Total deferred income taxes	194		181		44
	$	(34)	$	169	$	29

	2024		2023		2022
DTE Electric	(In millions)
Current income tax expense (benefit)
Federal	$	(228)	$	1	$	1
State and other income tax	—		(5)		—
Total current income taxes	(228)		(4)		1
Deferred income tax expense (benefit)
Federal	124		19		(46)
State and other income tax	72		63		71
Total deferred income taxes	196		82		25
	$	(32)	$	78	$	26

Schedule of Deferred Tax Assets and Liabilities

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

	DTE Energy				DTE Electric
	2024		2023		2024		2023
	(In millions)
Property, plant, and equipment	$	(3,695)	$	(3,423)	$	(2,788)	$	(2,693)
Regulatory assets and liabilities	(1,272)		(1,158)		(1,492)		(1,314)
Tax credit carryforwards	1,604		1,519		583		572
Pension and benefits	55		77		62		69
Federal net operating loss carryforward	190		202		30		71
State and local net operating loss carryforwards	68		76		42		49
Investments in equity method investees	(28)		(33)		(1)		—
Other	145		130		176		137
	(2,933)		(2,610)		(3,388)		(3,109)
Less: Valuation allowance	(25)		(39)		(5)		—
Long-term deferred income tax liabilities	$	(2,958)	$	(2,649)	$	(3,393)	$	(3,109)
Deferred income tax assets	$	2,508	$	2,415	$	1,209	$	1,202
Deferred income tax liabilities	(5,466)		(5,064)		(4,602)		(4,311)
	$	(2,958)	$	(2,649)	$	(3,393)	$	(3,109)