Duke Energy CORPDUK
Duke Energy CORP Income Taxes Disclosure
INCOME TAXES
Inflation Reduction Act and the OBBBA
In August 2022, the IRA was signed into law. Among other provisions, the IRA implemented a new 15% corporate alternative minimum tax based on GAAP net income, with certain adjustments as defined by the IRA, and clean energy-related provisions. The IRA's clean energy provisions included, among other provisions, the extension and modification of existing investment and PTCs for projects placed in service through 2024 and introduced new technology-neutral clean energy-related tax credits beginning in 2025. In addition, the IRA created a new, zero-emission nuclear power PTC and a clean hydrogen PTC.
Duke Energy Carolinas has $913 million and $449 million of nuclear PTCs recorded on its consolidated balance sheets as of December 31, 2025, and 2024, respectively. Duke Energy Progress has $152 million and $73 million of nuclear PTCs recorded on its consolidated balance sheets as of December 31, 2025, and 2024, respectively. These amounts represent the estimated net realizable value of the PTCs, which were deferred to a regulatory liability. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available.
In 2025, proceeds of $723 million were received, net of discount, related to the sale of tax credits, which primarily includes $530 million of nuclear power PTCs at Duke Energy Carolinas, $83 million of nuclear power PTCs at Duke Energy Progress and $69 million of solar PTCs at Duke Energy Florida. In 2024, net proceeds of $558 million were received related to the sale of tax credits, which primarily includes $428 million of nuclear power PTCs at Duke Energy Carolinas, $65 million of nuclear power PTCs at Duke Energy Progress, and $43 million of solar PTCs at Duke Energy Florida. See Note 4 for further details on the Subsidiary Registrants' regulatory process to pass the net realizable value back to customers over time, as applicable.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, which among other things, modified tax legislation affecting clean energy tax credits. While transferability was preserved for tax credits established by the IRA, including the nuclear PTC, which remains available through 2032, the legislation phases out or terminates certain tax credits sooner than previously scheduled. To remain eligible for the PTC or ITC, solar and wind facilities must be placed in service by December 31, 2027, unless construction begins by July 4, 2026. For other types of facilities, the credits continue to be available at full value if construction begins by December 31, 2033, although there are new prohibited foreign entity restrictions. The OBBBA did not change the federal corporate income tax rate and did not require the remeasurement of deferred tax assets or liabilities. While there were no material current year impacts to the results of operations, financial position or cash flows for the Duke Energy Registrants as a result of the OBBBA being signed into law as of December 31, 2025, the Company will continue to evaluate the future impact of this tax law change as additional information and guidance becomes available.
Corporate Alternative Minimum Tax
On February 18, 2026, the U.S. Treasury Department published Notice 2026-7 (Notice) providing additional interim guidance on application of the Corporate Alternative Minimum Tax (CAMT) under the Internal Revenue Code. The notice includes adjustments to adjusted financial statement income that permit taxpayers to deduct certain tax-deductible repairs with respect to Section 168 property for CAMT purposes, as well as other adjustments related to capitalization differences. Duke Energy is evaluating the potential impact of this Notice on its CAMT liability for the current and prior taxable years, including any required financial statement adjustments, tax provision effects, or related disclosures. Duke Energy believes the interim guidance will impact the future tax liabilities but is unable to reasonably estimate the ultimate financial statement impact pending further analysis and any forthcoming proposed or final regulations.
Improvements to Income Tax Disclosures
In December 2023, the Financial Accounting Standards Board (FASB) issued new accounting guidance to enhance income tax disclosures by requiring consistent categorization and additional disaggregation of information in the rate reconciliation, as well as an annual disclosure of income taxes paid information disaggregated by jurisdiction. The Duke Energy Registrants adopted this guidance on a prospective basis as of January 1, 2025, in the Company's 2025 Form 10-K. This guidance impacted the financial statement disclosures with no impact on the results of operations, cash flows or financial condition.
Income Tax Expense
Components of Income Tax Expense
Tax benefit from discontinued operations, in the following tables, includes income tax benefits related to the Commercial Renewables Disposal Groups. See Note 2 for further details.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Current income taxes | ||||||||||||||||||||||||||
Federal(a) | $ | (565) | $ | (278) | $ | 134 | $ | (118) | $ | 264 | $ | 66 | $ | 125 | $ | 65 | ||||||||||
| State | (6) | 30 | 21 | (3) | 74 | 2 | 13 | 7 | ||||||||||||||||||
| Foreign | 2 | — | — | — | — | — | — | — | ||||||||||||||||||
| Total current income taxes | (569) | (248) | 155 | (121) | 338 | 68 | 138 | 72 | ||||||||||||||||||
| Deferred income taxes | ||||||||||||||||||||||||||
| Federal | 1,101 | 432 | 259 | 319 | (57) | (3) | (64) | 37 | ||||||||||||||||||
| State | 135 | 27 | 76 | 29 | 9 | 3 | 11 | 3 | ||||||||||||||||||
Total deferred income taxes(b) | 1,236 | 459 | 335 | 348 | (48) | — | (53) | 40 | ||||||||||||||||||
| ITC amortization | (25) | (17) | (5) | (4) | (1) | — | (3) | — | ||||||||||||||||||
| Income tax expense from continuing operations | 642 | 194 | 485 | 223 | 289 | 68 | 82 | 112 | ||||||||||||||||||
(a) Transferrable Federal credits under IRC Section 6418 are recorded net of discount in current Federal income tax expense.
(b) Total deferred income taxes include income tax attribute (generation)/utilization, under the tax sharing agreement, as follows:
Duke Energy: $354 million
Duke Energy Carolinas: $(36) million
Progress Energy: $(11) million
Duke Energy Progress: $(29) million
Duke Energy Florida: $4 million
Duke Energy Ohio: $(14) million
Duke Energy Indiana: $(45) million
Piedmont: $(2) million
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Current income taxes | ||||||||||||||||||||||||||
Federal | $ | (365) | $ | 178 | $ | 359 | $ | 373 | $ | 14 | $ | 52 | $ | 70 | $ | 40 | ||||||||||
| State | 31 | 75 | 34 | 40 | (12) | 3 | 12 | (6) | ||||||||||||||||||
| Foreign | 2 | — | — | — | — | — | — | — | ||||||||||||||||||
| Total current income taxes | (332) | 253 | 393 | 413 | 2 | 55 | 82 | 34 | ||||||||||||||||||
| Deferred income taxes | ||||||||||||||||||||||||||
| Federal | 858 | 10 | (22) | (215) | 181 | 8 | (19) | 40 | ||||||||||||||||||
| State | 81 | (25) | 59 | (6) | 86 | 1 | 8 | 21 | ||||||||||||||||||
Total deferred income taxes(a) | 939 | (15) | 37 | (221) | 267 | 9 | (11) | 61 | ||||||||||||||||||
| ITC amortization | (17) | (12) | (4) | (3) | (1) | — | — | — | ||||||||||||||||||
| Income tax expense from continuing operations | 590 | 226 | 426 | 189 | 268 | 64 | 71 | 95 | ||||||||||||||||||
| Tax benefit from discontinued operations | (50) | — | — | — | — | — | — | — | ||||||||||||||||||
Total income tax expense included in Consolidated Statements of Operations | $ | 540 | $ | 226 | $ | 426 | $ | 189 | $ | 268 | $ | 64 | $ | 71 | $ | 95 | ||||||||||
(a) Total deferred income taxes include the utilization of NOL carryforwards and tax credit carryforwards of $523 million at Duke Energy and $8 million at Duke Energy Indiana. In addition, total deferred income taxes include the generation of NOL carryforwards and tax credit carryforwards of $47 million at Duke Energy Carolinas, $85 million at Progress Energy, $66 million at Duke Energy Progress, $30 million at Duke Energy Florida, $26 million at Duke Energy Ohio, and $8 million at Piedmont.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Current income taxes | ||||||||||||||||||||||||||
Federal(b) | $ | 71 | $ | 173 | $ | 459 | $ | 198 | $ | 279 | $ | (46) | $ | 10 | $ | 44 | ||||||||||
| State | 1 | 22 | 38 | 4 | 71 | (3) | 9 | 3 | ||||||||||||||||||
| Foreign | 3 | — | — | — | — | — | — | — | ||||||||||||||||||
| Total current income taxes | 75 | 195 | 497 | 202 | 350 | (49) | 19 | 47 | ||||||||||||||||||
| Deferred income taxes | ||||||||||||||||||||||||||
| Federal | 319 | (43) | (154) | (69) | (89) | 111 | 77 | 25 | ||||||||||||||||||
| State | 53 | (7) | 38 | 19 | — | 1 | 14 | 12 | ||||||||||||||||||
Total deferred income taxes(a) | 372 | (50) | (116) | (50) | (89) | 112 | 91 | 37 | ||||||||||||||||||
| ITC amortization | (9) | (4) | (4) | (3) | — | — | — | — | ||||||||||||||||||
Income tax expense from continuing operations | 438 | 141 | 377 | 149 | 261 | 63 | 110 | 84 | ||||||||||||||||||
| Tax benefit from discontinued operations | (359) | — | — | — | — | — | — | — | ||||||||||||||||||
Total income tax expense included in Consolidated Statements of Operations | $ | 79 | $ | 141 | $ | 377 | $ | 149 | $ | 261 | $ | 63 | $ | 110 | $ | 84 | ||||||||||
(a) Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $214 million at Duke Energy and $54 million at Duke Energy Indiana. In addition, total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $2 million at Duke Energy Carolinas, $116 million at Progress Energy, $59 million at Duke Energy Progress, $5 million at Duke Energy Florida, $22 million at Duke Energy Ohio, and $15 million at Piedmont.
(b) Total current federal income tax at Duke Energy includes corporate alternative minimum tax, net of tax credit utilization, of $69 million. In addition, under the IRA transferability provision, Progress Energy elected to sell $28 million of PTCs generated by Duke Energy Florida.
Duke Energy Income from Continuing Operations before Income Taxes
| Years Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Domestic | $ | 5,674 | $ | 5,145 | $ | 4,700 | |||||||||||
| Foreign | 38 | 49 | 67 | ||||||||||||||
| Income from continuing operations before income taxes | $ | 5,712 | $ | 5,194 | $ | 4,767 | |||||||||||
Statutory Rate Reconciliation
The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Duke | Duke Energy | Progress | Duke Energy | |||||||||||||||||||||||||||||
| ($ in millions and effective tax rate in percent) | Energy | Carolinas | Energy | Progress | ||||||||||||||||||||||||||||
| U.S. Federal statutory income tax | $ | 1,200 | 21.0 | % | $ | 483 | 21.0 | % | $ | 609 | 21.0 | % | $ | 316 | 21.0 | % | ||||||||||||||||
| Federal | ||||||||||||||||||||||||||||||||
| Tax credits | ||||||||||||||||||||||||||||||||
PTCs (solar) | (65) | (1.1) | % | — | — | % | (65) | (2.2) | % | (1) | — | % | ||||||||||||||||||||
Amortization of PTCs (nuclear) | (36) | (0.6) | % | (36) | (1.6) | % | — | — | % | — | — | % | ||||||||||||||||||||
Amortization of ITCs | (25) | (0.4) | % | (17) | (0.7) | % | (5) | (0.2) | % | (4) | (0.3) | % | ||||||||||||||||||||
| Other | (23) | (0.4) | % | (11) | (0.5) | % | (9) | (0.3) | % | (6) | (0.4) | % | ||||||||||||||||||||
| Nontaxable and Nondeductible | ||||||||||||||||||||||||||||||||
| Regulatory Deferrals | ||||||||||||||||||||||||||||||||
| AFUDC equity income | (68) | (1.2) | % | (30) | (1.3) | % | (25) | (0.9) | % | (21) | (1.4) | % | ||||||||||||||||||||
| AFUDC equity depreciation | 46 | 0.8 | % | 19 | 0.8 | % | 19 | 0.7 | % | 11 | 0.7 | % | ||||||||||||||||||||
| Amortization of EDIT | (466) | (8.2) | % | (260) | (11.3) | % | (118) | (4.1) | % | (96) | (6.4) | % | ||||||||||||||||||||
| Other | (27) | (0.5) | % | (1) | — | % | 1 | — | % | 2 | 0.1 | % | ||||||||||||||||||||
| Changes in valuation allowances | 7 | 0.1 | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
| Foreign tax effects | (6) | (0.1) | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
| Unrecognized tax benefits | (1) | — | % | — | — | % | (1) | — | % | (1) | — | % | ||||||||||||||||||||
Domestic state and local income taxes, net of federal effect(a) | 106 | 1.8 | % | 47 | 2.0 | % | 79 | 2.7 | % | 23 | 1.5 | % | ||||||||||||||||||||
| Total | $ | 642 | 11.2 | % | $ | 194 | 8.4 | % | $ | 485 | 16.7 | % | $ | 223 | 14.8 | % | ||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
Duke Energy | Duke Energy | Duke Energy | ||||||||||||||||||||||||||||||
($ in millions and effective tax rate in percent) | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||||||||||||
| U.S. Federal statutory income tax | $ | 311 | 21.0 | % | $ | 85 | 21.0 | % | $ | 127 | 21.0 | % | $ | 116 | 21.0 | % | ||||||||||||||||
| Federal | ||||||||||||||||||||||||||||||||
| Tax credits | ||||||||||||||||||||||||||||||||
PTCs (solar) | (64) | (4.3) | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
Amortization of PTCs (nuclear) | — | — | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
Amortization of ITCs | (1) | (0.1) | % | — | — | % | (3) | (0.5) | % | — | — | % | ||||||||||||||||||||
| Other | (3) | (0.2) | % | (1) | (0.2) | % | (1) | (0.2) | % | (1) | (0.2) | % | ||||||||||||||||||||
| Nontaxable and Nondeductible | ||||||||||||||||||||||||||||||||
| Regulatory Deferrals | ||||||||||||||||||||||||||||||||
| AFUDC equity income | (4) | (0.3) | % | (3) | (0.7) | % | (6) | (1.0) | % | (4) | (0.7) | % | ||||||||||||||||||||
| AFUDC equity depreciation | 8 | 0.5 | % | 4 | 1.0 | % | 4 | 0.7 | % | 1 | 0.2 | % | ||||||||||||||||||||
| Amortization of EDIT | (22) | (1.5) | % | (22) | (5.4) | % | (57) | (9.5) | % | (8) | (1.4) | % | ||||||||||||||||||||
| Other | (3) | (0.2) | % | 0 | — | % | 0 | (0.1) | % | 0 | (0.2) | % | ||||||||||||||||||||
| Changes in valuation allowances | — | — | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
| Foreign tax effects | — | — | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
| Unrecognized tax benefits | 1 | 0.1 | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||
Domestic state and local income taxes, net of federal effect(a) | 66 | 4.5 | % | 4 | 1.0 | % | 19 | 3.2 | % | 9 | 1.6 | % | ||||||||||||||||||||
| Total | $ | 289 | 19.5 | % | $ | 68 | 16.7 | % | $ | 82 | 13.6 | % | $ | 112 | 20.3 | % | ||||||||||||||||
(a) Jurisdictions that make up the majority of the registrant's respective domestic state income taxes, net of federal effect, are as follows:
•Duke Energy: North Carolina, South Carolina and Florida
•Duke Energy Carolinas: North Carolina and South Carolina
•Progress Energy: Florida and North Carolina
•Duke Energy Progress: North Carolina and South Carolina
•Duke Energy Florida: Florida
•Duke Energy Ohio: Kentucky
•Duke Energy Indiana: Indiana
•Piedmont: North Carolina, Tennessee and South Carolina
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Income tax expense, computed at the statutory rate of 21% | $ | 1,090 | $ | 443 | $ | 545 | $ | 284 | $ | 279 | $ | 85 | $ | 108 | $ | 107 | ||||||||||
| State income tax, net of federal income tax effect | 88 | 40 | 73 | 27 | 58 | 3 | 16 | 12 | ||||||||||||||||||
Amortization of EDIT | (436) | (225) | (121) | (98) | (23) | (23) | (49) | (18) | ||||||||||||||||||
| AFUDC equity income | (48) | (24) | (16) | (13) | (3) | (1) | (3) | (4) | ||||||||||||||||||
| AFUDC equity depreciation | 38 | 19 | 14 | 7 | 7 | 2 | 4 | — | ||||||||||||||||||
Production tax credits | (46) | — | (46) | — | (46) | — | — | — | ||||||||||||||||||
Other tax credits | (43) | (23) | (16) | (12) | (4) | (1) | (2) | (2) | ||||||||||||||||||
| Other items, net | (53) | (4) | (7) | (6) | — | (1) | (3) | — | ||||||||||||||||||
Income tax expense from continuing operations | $ | 590 | $ | 226 | $ | 426 | $ | 189 | $ | 268 | $ | 64 | $ | 71 | $ | 95 | ||||||||||
| Effective tax rate | 11.4 | % | 10.7 | % | 16.4 | % | 14.0 | % | 20.2 | % | 15.8 | % | 13.9 | % | 18.7 | % | ||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Income tax expense, computed at the statutory rate of 21% | $ | 1,001 | $ | 338 | $ | 490 | $ | 241 | $ | 268 | $ | 83 | $ | 128 | $ | 97 | ||||||||||
| State income tax, net of federal income tax effect | 43 | 12 | 60 | 18 | 56 | (2) | 18 | 12 | ||||||||||||||||||
Amortization of EDIT | (388) | (197) | (114) | (91) | (23) | (22) | (33) | (20) | ||||||||||||||||||
| AFUDC equity income | (41) | (19) | (14) | (11) | (3) | (2) | (2) | (4) | ||||||||||||||||||
| AFUDC equity depreciation | 37 | 18 | 13 | 6 | 7 | 2 | 4 | — | ||||||||||||||||||
Tax credits(b) | (63) | (11) | (46) | (7) | (39) | (2) | (2) | (1) | ||||||||||||||||||
Interest on company-owned life insurance(a) | (114) | — | — | — | — | — | — | — | ||||||||||||||||||
| Other items, net | (37) | — | (12) | (7) | (5) | 6 | (3) | — | ||||||||||||||||||
Income tax expense from continuing operations | $ | 438 | $ | 141 | $ | 377 | $ | 149 | $ | 261 | $ | 63 | $ | 110 | $ | 84 | ||||||||||
| Effective tax rate | 9.2 | % | 8.8 | % | 16.2 | % | 13.0 | % | 20.4 | % | 15.9 | % | 18.1 | % | 18.1 | % | ||||||||||
(a) During 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable federal adjustment of approximately $114 million and a favorable state adjustment of approximately $6 million. The favorable state adjustment is included in State income tax, net of federal income tax effect, in the above table.
(b) Tax credits at Progress Energy and Duke Energy Florida include $28 million of certain eligible PTCs, net of discount, that were elected to be sold in 2023 under the transferability provisions of the IRA.
DEFERRED TAXES
Net Deferred Income Tax Liability Components
| December 31, 2025 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Deferred credits and other liabilities | $ | 254 | $ | 217 | $ | 82 | $ | 49 | $ | 33 | $ | 23 | $ | 15 | $ | 21 | ||||||||||
| Lease obligations | 452 | 86 | 263 | 184 | 79 | 1 | 11 | 1 | ||||||||||||||||||
| Pension, post-retirement and other employee benefits | 20 | — | — | — | — | 3 | — | — | ||||||||||||||||||
Progress Energy merger purchase accounting adjustments(a) | 210 | — | — | — | — | — | — | — | ||||||||||||||||||
| Tax credits and NOL carryforwards | 3,259 | 595 | 844 | 383 | 452 | 84 | 191 | 58 | ||||||||||||||||||
Investments and other assets | — | — | — | — | — | 2 | 19 | — | ||||||||||||||||||
| Other | 36 | 2 | 4 | 3 | 1 | 4 | (1) | 7 | ||||||||||||||||||
| Valuation allowance | (130) | (1) | — | — | — | — | — | — | ||||||||||||||||||
| Total deferred income tax assets | 4,101 | 899 | 1,193 | 619 | 565 | 117 | 235 | 87 | ||||||||||||||||||
| Investments and other assets | (2,452) | (1,545) | (829) | (790) | (54) | — | — | (68) | ||||||||||||||||||
Pension post-retirement and other employee benefits | — | (43) | (57) | (13) | (48) | — | (3) | (6) | ||||||||||||||||||
| Accelerated depreciation rates | (12,629) | (3,219) | (5,171) | (1,914) | (3,301) | (1,414) | (1,701) | (1,072) | ||||||||||||||||||
| Regulatory assets and deferred debits, net | (1,397) | (283) | (712) | (544) | (167) | (44) | (56) | (12) | ||||||||||||||||||
| Total deferred income tax liabilities | (16,478) | (5,090) | (6,769) | (3,261) | (3,570) | (1,458) | (1,760) | (1,158) | ||||||||||||||||||
| Net deferred income tax liabilities | $ | (12,377) | $ | (4,191) | $ | (5,576) | $ | (2,642) | $ | (3,005) | $ | (1,341) | $ | (1,525) | $ | (1,071) | ||||||||||
(a) Primarily related to lease obligations and debt fair value adjustments.
The following table presents the expiration of tax credits and NOL carryforwards.
| December 31, 2025 | |||||||||||||||||||||||
| (in millions) | Amount | Expiration Year | |||||||||||||||||||||
| General Business Credits | $ | 1,908 | 2032 | — | 2045 | ||||||||||||||||||
Foreign Tax Credits(c) | 36 | 2027 | — | 2028 | |||||||||||||||||||
State Carryforwards and Credits(a) | 265 | 2026 | — | Indefinite | |||||||||||||||||||
| Corporate AMT Credits | 1,038 | Indefinite | |||||||||||||||||||||
Foreign NOL carryforwards(b) | 12 | 2027 | — | 2045 | |||||||||||||||||||
| Total tax credits and NOL carryforwards | $ | 3,259 | |||||||||||||||||||||
(a) A valuation allowance of $83 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(b) A valuation allowance of $12 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(c) A valuation allowance of $36 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.
| December 31, 2024 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Deferred credits and other liabilities | $ | 284 | $ | 217 | $ | 84 | $ | 43 | $ | 41 | $ | 17 | $ | 15 | $ | 40 | ||||||||||
| Lease obligations | 430 | 88 | 265 | 179 | 86 | 2 | 12 | 2 | ||||||||||||||||||
| Pension, post-retirement and other employee benefits | 89 | (33) | (23) | (1) | (26) | 6 | 1 | (2) | ||||||||||||||||||
Progress Energy merger purchase accounting adjustments(a) | 227 | — | — | — | — | — | — | — | ||||||||||||||||||
| Tax credits and NOL carryforwards | 3,845 | 522 | 783 | 312 | 449 | 70 | 145 | 57 | ||||||||||||||||||
| Regulatory liabilities and deferred credits | — | — | — | — | — | — | 10 | — | ||||||||||||||||||
| Other | 35 | 11 | 5 | 3 | 2 | 4 | — | 8 | ||||||||||||||||||
| Valuation allowance | (517) | — | — | — | — | — | — | — | ||||||||||||||||||
| Total deferred income tax assets | 4,393 | 805 | 1,114 | 536 | 552 | 99 | 183 | 105 | ||||||||||||||||||
| Investments and other assets | (2,114) | (1,350) | (724) | (671) | (69) | — | — | (48) | ||||||||||||||||||
| Accelerated depreciation rates | (11,942) | (3,203) | (4,608) | (1,624) | (3,047) | (1,361) | (1,677) | (1,019) | ||||||||||||||||||
| Regulatory assets and deferred debits, net | (1,761) | (304) | (1,045) | (585) | (460) | (52) | — | (56) | ||||||||||||||||||
| Total deferred income tax liabilities | (15,817) | (4,857) | (6,377) | (2,880) | (3,576) | (1,413) | (1,677) | (1,123) | ||||||||||||||||||
| Net deferred income tax liabilities | $ | (11,424) | $ | (4,052) | $ | (5,263) | $ | (2,344) | $ | (3,024) | $ | (1,314) | $ | (1,494) | $ | (1,018) | ||||||||||
(a) Primarily related to lease obligations and debt fair value adjustments.
INCOME TAXES PAID
The following table presents income taxes paid.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
Federal | ||||||||||||||||||||||||||
Internal Revenue Service – payments/(refunds) | 58 | 561 | 424 | 211 | 202 | 100 | 182 | 55 | ||||||||||||||||||
Transferrable Credits – purchased/(sold) | (676) | (551) | (171) | (102) | (69) | — | — | — | ||||||||||||||||||
Total Federal | (618) | 10 | 253 | 109 | 133 | 100 | 182 | 55 | ||||||||||||||||||
State income tax payments/(refunds) | ||||||||||||||||||||||||||
| North Carolina | (4) | 39 | 7 | 9 | — | — | — | — | ||||||||||||||||||
| South Carolina | — | 36 | — | 2 | — | — | — | — | ||||||||||||||||||
| Florida | — | — | 5 | — | 34 | — | — | — | ||||||||||||||||||
| Indiana | — | — | — | — | — | — | 26 | — | ||||||||||||||||||
| Kentucky | 1 | — | — | — | — | 3 | — | — | ||||||||||||||||||
| Oklahoma | (4) | — | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total State | (7) | 75 | 12 | 11 | 34 | 3 | 26 | — | ||||||||||||||||||
Total Income Taxes Paid (net of refunds) | $ | (625) | $ | 85 | $ | 265 | $ | 120 | $ | 167 | $ | 103 | $ | 208 | $ | 55 | ||||||||||
UNRECOGNIZED TAX BENEFITS
The following tables present changes to unrecognized tax benefits.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Unrecognized tax benefits – January 1 | $ | 74 | $ | 25 | $ | 29 | $ | 22 | $ | 7 | $ | 2 | $ | 3 | $ | 13 | ||||||||||
| Gross increases – current period tax positions | (2) | — | (1) | (2) | 1 | — | — | (1) | ||||||||||||||||||
| Unrecognized tax benefits – December 31 | $ | 72 | $ | 25 | $ | 28 | $ | 20 | $ | 8 | $ | 2 | $ | 3 | $ | 12 | ||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Unrecognized tax benefits – January 1 | $ | 62 | $ | 21 | $ | 24 | $ | 18 | $ | 6 | $ | 2 | $ | 3 | $ | 11 | ||||||||||
| Gross increases – current period tax positions | 12 | 4 | 5 | 4 | 1 | — | — | 2 | ||||||||||||||||||
| Unrecognized tax benefits – December 31 | $ | 74 | $ | 25 | $ | 29 | $ | 22 | $ | 7 | $ | 2 | $ | 3 | $ | 13 | ||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
| Unrecognized tax benefits – January 1 | $ | 65 | $ | 17 | $ | 19 | $ | 13 | $ | 5 | $ | 1 | $ | 2 | $ | 9 | ||||||||||
Gross decreases – tax positions in prior periods | (15) | — | — | — | — | — | — | — | ||||||||||||||||||
| Gross increases – current period tax positions | 12 | 4 | 5 | 5 | 1 | 1 | 1 | 2 | ||||||||||||||||||
| Total changes | (3) | 4 | 5 | 5 | 1 | 1 | 1 | 2 | ||||||||||||||||||
| Unrecognized tax benefits – December 31 | $ | 62 | $ | 21 | $ | 24 | $ | 18 | $ | 6 | $ | 2 | $ | 3 | $ | 11 | ||||||||||
The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2025.
| December 31, 2025 | ||||||||||||||||||||||||||
| Duke | Duke | Duke | Duke | Duke | ||||||||||||||||||||||
| Duke | Energy | Progress | Energy | Energy | Energy | Energy | ||||||||||||||||||||
| (in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont | ||||||||||||||||||
Amount that if recognized, would affect the effective tax rate or regulatory liability(a) | $ | 67 | $ | 24 | $ | 26 | $ | 18 | $ | 8 | $ | 2 | $ | 3 | $ | 11 | ||||||||||
(a) The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.
Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2019, aside from certain tax attributes carried forward for utilization in future years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 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.