General Motors CoGM
General Motors Co Income Taxes Disclosure
Income Taxes
Other Matters Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2011 to 2025 with various significant tax jurisdictions. Tax authorities may have the ability to review and adjust net operating loss or tax credit carryforwards that were generated prior to these periods if utilized in an open tax year. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing, or inclusion of revenue and expenses, or the sustainability of income tax credits for a given audit cycle.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. income (loss) | $ | (42) | $ | 9,715 | $ | 6,284 | |||||||||||
| Non-U.S. income (loss) | 3,159 | (1,196) | 4,119 | ||||||||||||||
| Income (loss) before income taxes | $ | 3,117 | $ | 8,519 | $ | 10,403 | |||||||||||
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current income tax expense (benefit) | |||||||||||||||||
| U.S. federal | $ | 133 | $ | 202 | $ | 240 | |||||||||||
| U.S. state and local | 211 | 309 | 490 | ||||||||||||||
| Non-U.S. | 1,243 | 676 | 874 | ||||||||||||||
| Total current income tax expense (benefit) | 1,587 | 1,188 | 1,605 | ||||||||||||||
| Deferred income tax expense (benefit) | |||||||||||||||||
| U.S. federal | (789) | 891 | (120) | ||||||||||||||
| U.S. state and local | (177) | 101 | (43) | ||||||||||||||
| Non-U.S. | (283) | 376 | (878) | ||||||||||||||
| Total deferred income tax expense (benefit) | (1,249) | 1,368 | (1,041) | ||||||||||||||
| Total income tax expense (benefit) | $ | 338 | $ | 2,556 | $ | 563 | |||||||||||
The Non-U.S. deferred income tax benefit in the year ended December 31, 2023 relates primarily to the release of a valuation allowance in Korea.
Provisions are made for estimated U.S. and non-U.S. income taxes which may be incurred on the reversal of our basis differences in investments in foreign subsidiaries and corporate joint ventures not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investments primarily as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $7.6 billion and $6.1 billion at December 31, 2025 and 2024. We have indefinitely reinvested basis differences related to investments in non-consolidated China JVs of $1.4 billion at December 31, 2025 and December 31, 2024 as a result of fresh-start reporting. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable. Refer to Note 8 for additional information regarding the decrease in our basis differences related to investments in nonconsolidated affiliates from fresh-start reporting.
| Year Ended December 31, 2025 | |||||||||||
| In USD | Percent of Pre-tax Income | ||||||||||
| U.S. federal statutory tax rate | $ | 655 | 21.0 | % | |||||||
| State and local tax expense(a) | 77 | 2.5 | % | ||||||||
| Foreign tax effects | |||||||||||
| China | 126 | 4.0 | % | ||||||||
| Mexico | |||||||||||
| Statutory tax rate difference between Mexico and U.S. | 120 | 3.8 | % | ||||||||
| Other | (48) | (1.5) | % | ||||||||
| Germany | |||||||||||
| Changes in valuation allowances | (367) | (11.8) | % | ||||||||
| Changes in tax laws or rates | 421 | 13.5 | % | ||||||||
| Other | 9 | 0.3 | % | ||||||||
| Other foreign jurisdictions | (21) | (0.7) | % | ||||||||
| Effect of changes in tax laws or rates enacted in the current period | — | — | |||||||||
| Effect of cross-border tax laws | 33 | 1.1 | % | ||||||||
| Tax credits | |||||||||||
| Research and development tax credits | (478) | (15.3) | % | ||||||||
| Other | (95) | (3.1) | % | ||||||||
| Changes in valuation allowances | (40) | (1.3) | % | ||||||||
| Nontaxable or nondeductible items | |||||||||||
| IRA credits | (181) | (5.8) | % | ||||||||
| Other | (18) | (0.6) | % | ||||||||
| Changes in unrecognized tax benefits | (91) | (2.9) | % | ||||||||
| Equity income or loss | 126 | 4.0 | % | ||||||||
| Other adjustments | 107 | 3.4 | % | ||||||||
| Total income tax expense (benefit) | $ | 338 | 10.8 | % | |||||||
__________
(a)State taxes in California, Michigan, Illinois, Florida, New Jersey, Pennsylvania, Minnesota, and Wisconsin made up the majority of the tax effect in this category.
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Income tax expense at U.S. federal statutory income tax rate | $ | 1,789 | $ | 2,185 | |||||||
| State and local tax expense (benefit) | 323 | 348 | |||||||||
| Non-U.S. income taxed at other than the U.S. federal statutory tax rate | 130 | 203 | |||||||||
| U.S. tax impact on Non-U.S. income and activities | (49) | (62) | |||||||||
| Change in valuation allowances | 46 | (1,061) | |||||||||
| Change in tax laws | 9 | 25 | |||||||||
| General business credits and manufacturing incentives | (906) | (966) | |||||||||
| Settlements of prior year tax matters | — | 23 | |||||||||
| Realization of basis differences in affiliates | (45) | — | |||||||||
| Foreign currency remeasurement | 73 | (62) | |||||||||
| Equity income or loss | 982 | (101) | |||||||||
| Other adjustments | 204 | 31 | |||||||||
| Total income tax expense (benefit) | $ | 2,556 | $ | 563 | |||||||
Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2025 and 2024 reflect the effect of temporary differences between amounts of assets, liabilities, and equity for financial reporting purposes and the bases of such assets, liabilities, and equity as measured based on tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Deferred tax assets | |||||||||||
| Postretirement benefits other than pensions | $ | 1,062 | $ | 1,024 | |||||||
| Pension and other employee benefit plans | 989 | 1,421 | |||||||||
| Warranties, dealer and customer allowances, claims, and discounts | 4,803 | 4,215 | |||||||||
| U.S. capitalized research expenditures | 9,704 | 10,111 | |||||||||
| U.S. operating loss and tax credit carryforwards(a) | 7,237 | 6,582 | |||||||||
| Non-U.S. operating loss and tax credit carryforwards(b) | 5,550 | 5,239 | |||||||||
| Deferred revenue | 2,162 | 1,565 | |||||||||
| Miscellaneous | 3,429 | 2,737 | |||||||||
| Total deferred tax assets before valuation allowances | 34,936 | 32,894 | |||||||||
| Less: valuation allowances | (6,842) | (6,529) | |||||||||
| Total deferred tax assets | 28,094 | 26,365 | |||||||||
| Deferred tax liabilities | |||||||||||
| Property, plant, and equipment | 5,087 | 5,111 | |||||||||
| Intangible assets | 631 | 635 | |||||||||
| Total deferred tax liabilities | 5,718 | 5,746 | |||||||||
| Net deferred tax assets | $ | 22,376 | $ | 20,619 | |||||||
__________
(a)At December 31, 2025, U.S. operating loss deferred tax assets were $385 million, where $129 million can be carried forward indefinitely and $256 million will expire by 2045, if not utilized. At December 31, 2025, U.S. tax credit carryforwards were $6.9 billion, where $484 million can be carried forward indefinitely and $6.4 billion will expire by 2045, if not utilized.
(b)At December 31, 2025, Non-U.S. operating loss deferred tax assets were $5.5 billion, where $5.1 billion can be carried forward indefinitely and $339 million will expire by 2045, if not utilized. At December 31, 2025, Non-U.S. tax credit carryforwards were $67 million, all of which will expire by 2045, if not utilized.
Valuation Allowances During the years ended December 31, 2025 and 2024, valuation allowances against deferred tax assets of $6.8 billion and $6.5 billion were comprised of cumulative losses, credits, and other timing differences, primarily in Germany, Spain, the U.S., and Brazil.
Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance at beginning of period | $ | 586 | $ | 585 | $ | 520 | |||||||||||
| Additions to current year tax positions | 89 | 108 | 45 | ||||||||||||||
| Additions to prior years' tax positions | 10 | 28 | 72 | ||||||||||||||
| Reductions to prior years' tax positions | (94) | (109) | (15) | ||||||||||||||
| Reductions in tax positions due to lapse of statutory limitations | (18) | (7) | (19) | ||||||||||||||
| Settlements | (1) | (8) | (18) | ||||||||||||||
| Other | 4 | (11) | — | ||||||||||||||
| Balance at end of period | $ | 576 | $ | 586 | $ | 585 | |||||||||||
At December 31, 2025 and 2024, there were $417 million and $415 million of unrecognized tax benefits that if recognized would favorably affect our effective tax rate in the future. In the years ended December 31, 2025, 2024, and 2023, income tax-related interest and penalties were insignificant. At December 31, 2025 and 2024, liabilities for income tax-related interest and penalties were insignificant.
Income Taxes Paid
| Year Ended December 31, 2025 | |||||
| U.S. federal | $ | 277 | |||
| U.S. state | 314 | ||||
| Non-U.S. | 957 | ||||
| Total income taxes paid, net | $ | 1,548 | |||
Income taxes paid, net, for the periods ended December 31, 2024 and 2023 were $1.5 billion and $1.7 billion. Income taxes paid exceeds 5% of total income taxes paid, net of refunds, in the following jurisdictions. No individual state represents 5% of the total income taxes paid.
| Year Ended December 31, 2025 | |||||
| Foreign | |||||
| Canada | $ | 364 | |||
| Mexico | $ | 354 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 27, 2026 | Showing above |
| 2024 | Jan 28, 2025 | |
| 2023 | Jan 30, 2024 | |
| 2022 | Jan 31, 2023 | |
| 2021 | Feb 2, 2022 | |
| 2020 | Feb 10, 2021 | |
| 2019 | Feb 5, 2020 | |
| 2018 | Feb 6, 2019 | |
| 2017 | Feb 6, 2018 | |
| 2016 | Feb 7, 2017 | |
| 2015 | Feb 3, 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.