CROWN CASTLE INC.CCI
CROWN CASTLE INC. Income Taxes Disclosure
Income Taxes
Income (loss) from continuing operations before income taxes by geographic area is summarized in the table below.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Domestic | $ | 1,097 | $ | 1,155 | $ | 1,229 | |||||||||||
Foreign(a) | 22 | 25 | 29 | ||||||||||||||
| Total | $ | 1,119 | $ | 1,180 | $ | 1,258 | |||||||||||
(a)Inclusive of income (loss) before income taxes from Puerto Rico.
The benefit (provision) for income taxes from continuing operations consists of the following:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | (3) | $ | (3) | $ | (3) | |||||||||||
| Foreign | (10) | (7) | (8) | ||||||||||||||
| State | (3) | (4) | (1) | ||||||||||||||
| Total current | (16) | (14) | (12) | ||||||||||||||
| Deferred: | |||||||||||||||||
Federal | — | — | — | ||||||||||||||
| Foreign | — | (4) | (9) | ||||||||||||||
| Total deferred | — | (4) | (9) | ||||||||||||||
| Total tax benefit (provision) | $ | (16) | $ | (18) | $ | (21) | |||||||||||
The Company operates as a REIT for U.S. federal income tax purposes.
A reconciliation between the benefit (provision) for income taxes and the amount computed by applying the federal statutory income tax rate to the income (loss) from continuing operations before income taxes is as follows:
| Years Ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||||
| Benefit (provision) for income taxes at statutory rate | $ | (235) | 21.0 | % | $ | (248) | 21.0 | % | $ | (264) | 21.0 | % | ||||||||||||||
| Tax adjustment related to REIT operations | 232 | (20.7) | % | 246 | (20.8) | % | 260 | (20.7) | % | |||||||||||||||||
| Valuation allowances | — | — | % | (1) | 0.1 | % | — | — | % | |||||||||||||||||
State tax (provision) benefit, net of federal(a) | (3) | 0.3 | % | (4) | 0.3 | % | (1) | 0.1 | % | |||||||||||||||||
| Foreign tax | (10) | 0.9 | % | (11) | 0.9 | % | (16) | 1.3 | % | |||||||||||||||||
| Total | $ | (16) | 1.4 | % | $ | (18) | 1.5 | % | $ | (21) | 1.6 | % | ||||||||||||||
(a)State taxes in Texas make up the majority (greater than 50%) of the tax effect in this category.
The components of income taxes paid (refunded) from continuing operations are as follows:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Federal | $ | 4 | $ | 3 | $ | 3 | |||||||||||
State | |||||||||||||||||
| Texas | 2 | 2 | 2 | ||||||||||||||
| New Jersey | — | — | (2) | ||||||||||||||
| Other States | 1 | 1 | — | ||||||||||||||
| Puerto Rico | 8 | 4 | 10 | ||||||||||||||
| Total Income taxes paid (refunded) | $ | 15 | $ | 10 | $ | 13 | |||||||||||
The components of the net deferred income tax assets and liabilities from continuing operations are as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred income tax liabilities: | |||||||||||
| Property and equipment | $ | 11 | $ | 12 | |||||||
| Deferred site rental receivables | 8 | 7 | |||||||||
Site rental contracts and tenant relationships, net | 30 | 30 | |||||||||
| Total deferred income tax liabilities | 49 | 49 | |||||||||
| Deferred income tax assets: | |||||||||||
Other intangible assets, net | 29 | 29 | |||||||||
Net operating loss carryforwards(a) | 1 | 1 | |||||||||
| Straight-line rent expense liability | 5 | 5 | |||||||||
| Accrued liabilities | 5 | 5 | |||||||||
| Other | 5 | 6 | |||||||||
| Valuation allowances | (3) | (3) | |||||||||
| Total deferred income tax assets, net | 42 | 43 | |||||||||
| Net deferred income tax assets (liabilities) | $ | (7) | $ | (6) | |||||||
(a)Balance results from the Company's foreign NOLs. Due to the Company's REIT status, no federal or state NOLs result in the Company recording a deferred income tax asset. See further discussion surrounding the Company's NOL balances below.
The domestic and foreign components of the net deferred income tax assets (liabilities) from continuing operations are as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Classification | Gross | Valuation Allowance | Net | Gross | Valuation Allowance | Net | |||||||||||||||||||||||||||||
| Federal | $ | 26 | $ | (2) | $ | 24 | $ | 27 | $ | (2) | $ | 25 | |||||||||||||||||||||||
| State | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Foreign | (30) | (1) | (31) | (30) | (1) | (31) | |||||||||||||||||||||||||||||
| Total | $ | (4) | $ | (3) | $ | (7) | $ | (3) | $ | (3) | $ | (6) | |||||||||||||||||||||||
The Company recorded valuation allowances totaling $3 million as of both December 31, 2025 and 2024 related to certain deferred tax assets as management believes that it is not "more likely than not" that the Company will realize the assets.
At December 31, 2025, the Company had U.S. federal and state NOLs of approximately $1.4 billion and $0.4 billion, respectively, which are available to offset future taxable income. These amounts include approximately $237 million of losses related to stock-based compensation. As footnoted above, the Company’s federal and state NOLs are valued at a tax rate of 0% for deferred income tax purposes due to the Company’s REIT status. As a result, any expirations of these NOLs will not have any impact on the Company’s consolidated balance sheet or the consolidated statement of operations and comprehensive income (loss). The Company also has foreign NOLs of $3 million. During 2025, $127 million of the Company's US federal NOLs and $42 million of its state NOLs expired. If not utilized, the Company's remaining U.S. federal NOLs expire from 2026 to 2036, the remaining state NOLs expire from 2026 to 2044, and the foreign NOLs expire from 2028 to 2036. The federal NOLs potentially expiring in 2026 are $74 million, and the state NOLs potentially expiring in 2026 are $65 million. The utilization of the NOLs is subject to certain limitations. The Company's U.S. federal and state income tax returns generally remain open to examination by taxing authorities until three years after the applicable NOLs have been used or expired.
As of December 31, 2025, there were no unrecognized tax benefits that would impact the effective tax rate, if recognized.
From time to time, the Company is subject to examinations by various tax authorities in jurisdictions in which the Company has business operations. At this time, the Company is not subject to an Internal Revenue Service examination.
The Company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions in which it has business operations. The Company has no uncertain tax positions as of December 31, 2025. Additionally, the Company does not believe any such additional assessments arising from examinations or audits will have a material effect on the Company's financial statements.
The Company's deferred tax assets and liabilities are netted by jurisdiction. As of December 31, 2025, the Company's net deferred tax assets are included in "Other assets, net" and the Company's net deferred tax liabilities are included in "Other long-term liabilities" on the Company's consolidated balance sheet.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 22, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.