IDACORP INCIDA
IDACORP INC Income Taxes Disclosure
INCOME TAXES
Reconciliations between the statutory federal income tax rate and the effective tax rate for the years ended December 31 are presented below (in thousands of dollars, except percentages):
| IDACORP | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
Income before income taxes(1) | $ | 309,757 | $ | 304,227 | $ | 288,491 | ||||||||||||||||||||||||||||||||
| 65,049 | 21.0 | % | 63,888 | 21.0 | % | 60,583 | 21.0 | % | ||||||||||||||||||||||||||||||
State income taxes, net of federal income tax effect(2) | 12,480 | 4.0 | % | 14,420 | 4.7 | % | 13,675 | 4.7 | % | |||||||||||||||||||||||||||||
| Flow-through accounting and other effects of rate regulation: | ||||||||||||||||||||||||||||||||||||||
| AFUDC | (20,727) | (6.7) | % | (17,015) | (5.6) | % | (13,279) | (4.6) | % | |||||||||||||||||||||||||||||
| Capitalized interest | 7,721 | 2.5 | % | 5,493 | 1.8 | % | 3,097 | 1.1 | % | |||||||||||||||||||||||||||||
| Removal costs | (5,707) | (1.8) | % | (5,109) | (1.7) | % | (6,312) | (2.2) | % | |||||||||||||||||||||||||||||
| Capitalized overhead costs | (2,100) | (0.7) | % | (2,100) | (0.7) | % | (2,100) | (0.7) | % | |||||||||||||||||||||||||||||
| Capitalized repair costs | (24,150) | (7.8) | % | (19,320) | (6.4) | % | (24,360) | (8.4) | % | |||||||||||||||||||||||||||||
| Depreciation | 22,001 | 7.1 | % | 18,705 | 6.1 | % | 18,041 | 6.3 | % | |||||||||||||||||||||||||||||
| Excess deferred income tax reversal | (9,723) | (3.1) | % | (10,047) | (3.3) | % | (10,684) | (3.7) | % | |||||||||||||||||||||||||||||
| Income tax return adjustments | (8,046) | (2.6) | % | 1,844 | 0.6 | % | (8,229) | (2.9) | % | |||||||||||||||||||||||||||||
| State related | 324 | 0.1 | % | 6,043 | 2.0 | % | 2,127 | 0.7 | % | |||||||||||||||||||||||||||||
| Other, net | (808) | (0.3) | % | 776 | 0.3 | % | 1,874 | 0.6 | % | |||||||||||||||||||||||||||||
| Tax credits: | ||||||||||||||||||||||||||||||||||||||
| Investment tax credits - federal | (7,208) | (2.3) | % | (4,480) | (1.5) | % | (2,344) | (0.8) | % | |||||||||||||||||||||||||||||
| Investment tax credits - Idaho | — | — | % | (3,791) | (1.2) | % | (3,107) | (1.1) | % | |||||||||||||||||||||||||||||
| Accumulated deferred investment tax credits - federal | (7,017) | (2.3) | % | (8,712) | (2.9) | % | — | — | % | |||||||||||||||||||||||||||||
| Accumulated deferred investment tax credits - Idaho | (33,319) | (10.8) | % | (21,119) | (6.9) | % | — | — | % | |||||||||||||||||||||||||||||
| Real estate-related tax credits - federal | (7,790) | (2.5) | % | (7,499) | (2.5) | % | (6,869) | (2.4) | % | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | (229) | (0.1) | % | (516) | (0.2) | % | 120 | — | % | |||||||||||||||||||||||||||||
| Other Items: | ||||||||||||||||||||||||||||||||||||||
| Real estate-related investment distributions | (670) | (0.2) | % | (1,611) | (0.5) | % | (507) | (0.2) | % | |||||||||||||||||||||||||||||
| Real estate-related investment amortization | 6,204 | 2.0 | % | 5,203 | 1.7 | % | 5,570 | 1.9 | % | |||||||||||||||||||||||||||||
| Total income tax (benefit) expense and effective tax rate | $ | (13,715) | (4.4) | % | $ | 15,053 | 4.9 | % | $ | 27,296 | 9.5 | % | ||||||||||||||||||||||||||
(1) Net of adjustment for income attributable to noncontrolling interests.
(2) State taxes in Idaho made up the majority (greater than 50%) of the tax effect in this category.
| Idaho Power | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 302,685 | $ | 298,286 | $ | 285,736 | ||||||||||||||||||||||||||||||||
| US federal income tax expense at statutory rate | 63,564 | 21.0 | % | 62,640 | 21.0 | % | 60,005 | 21.0 | % | |||||||||||||||||||||||||||||
State income taxes, net of federal income tax effect(1) | 12,195 | 4.0 | % | 14,139 | 4.7 | % | 13,544 | 4.7 | % | |||||||||||||||||||||||||||||
| Flow-through accounting and other effects of rate regulation: | ||||||||||||||||||||||||||||||||||||||
| AFUDC | (20,727) | (6.8) | % | (17,015) | (5.7) | % | (13,279) | (4.6) | % | |||||||||||||||||||||||||||||
| Capitalized interest | 7,721 | 2.6 | % | 5,493 | 1.8 | % | 3,097 | 1.1 | % | |||||||||||||||||||||||||||||
| Removal costs | (5,707) | (1.9) | % | (5,109) | (1.7) | % | (6,312) | (2.2) | % | |||||||||||||||||||||||||||||
| Capitalized overhead costs | (2,100) | (0.7) | % | (2,100) | (0.7) | % | (2,100) | (0.7) | % | |||||||||||||||||||||||||||||
| Capitalized repair costs | (24,150) | (8.0) | % | (19,320) | (6.5) | % | (24,360) | (8.5) | % | |||||||||||||||||||||||||||||
| Depreciation | 22,001 | 7.3 | % | 18,705 | 6.3 | % | 18,041 | 6.3 | % | |||||||||||||||||||||||||||||
| Excess deferred income tax reversal | (9,723) | (3.2) | % | (10,047) | (3.4) | % | (10,684) | (3.7) | % | |||||||||||||||||||||||||||||
| Income tax return adjustments | (8,581) | (2.8) | % | 1,794 | 0.6 | % | (7,732) | (2.7) | % | |||||||||||||||||||||||||||||
| State related | 684 | 0.2 | % | 6,361 | 2.1 | % | 2,537 | 0.9 | % | |||||||||||||||||||||||||||||
| Other, net | (577) | (0.2) | % | 759 | 0.3 | % | 1,499 | 0.5 | % | |||||||||||||||||||||||||||||
| Tax credits: | ||||||||||||||||||||||||||||||||||||||
| Investment tax credits - federal | (7,208) | (2.4) | % | (4,480) | (1.5) | % | (2,344) | (0.8) | % | |||||||||||||||||||||||||||||
| Investment tax credits - Idaho | — | — | % | (3,791) | (1.3) | % | (3,107) | (1.1) | % | |||||||||||||||||||||||||||||
| Accumulated deferred investment tax credits - federal | (7,017) | (2.3) | % | (8,712) | (2.9) | % | — | — | % | |||||||||||||||||||||||||||||
| Accumulated deferred investment tax credits - Idaho | (33,319) | (11.0) | % | (21,119) | (7.1) | % | — | — | % | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible items | (233) | (0.1) | % | (517) | (0.2) | % | 121 | — | % | |||||||||||||||||||||||||||||
| Total income tax (benefit) expense and effective tax rate | $(13,177) | (4.4) | % | $17,681 | 5.9 | % | $28,926 | 10.1 | % | |||||||||||||||||||||||||||||
(1) State taxes in Idaho made up the majority (greater than 50%) of the tax effect in this category.
The items comprising income tax expense for the years ended December 31 are presented below (in thousands of dollars):
| IDACORP | Idaho Power | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Income taxes current: | ||||||||||||||||||||||||||||||||||||||
| Federal | $ | 13,684 | $ | 19,252 | $ | (13,253) | $ | 27,816 | $ | 20,447 | $ | (4,757) | ||||||||||||||||||||||||||
| State | 5,754 | 15,750 | 5,634 | 8,128 | 12,674 | 3,627 | ||||||||||||||||||||||||||||||||
| Total | 19,438 | 35,002 | (7,619) | 35,944 | 33,121 | (1,130) | ||||||||||||||||||||||||||||||||
| Income taxes deferred: | ||||||||||||||||||||||||||||||||||||||
| Federal | (28,931) | (73,565) | (18,419) | (35,697) | (67,549) | (19,086) | ||||||||||||||||||||||||||||||||
| State | (16,431) | (15,608) | (3,269) | (18,826) | (12,735) | (1,051) | ||||||||||||||||||||||||||||||||
| Total | (45,362) | (89,173) | (21,688) | (54,523) | (80,284) | (20,137) | ||||||||||||||||||||||||||||||||
| Investment tax credits: | ||||||||||||||||||||||||||||||||||||||
| Deferred | 52,946 | 102,946 | 55,644 | 52,946 | 102,946 | 55,644 | ||||||||||||||||||||||||||||||||
| Restored | (47,544) | (38,102) | (5,451) | (47,544) | (38,102) | (5,451) | ||||||||||||||||||||||||||||||||
| Total | 5,402 | 64,844 | 50,193 | 5,402 | 64,844 | 50,193 | ||||||||||||||||||||||||||||||||
| Real estate-related investments at IFS | 6,807 | 4,380 | 6,410 | — | — | — | ||||||||||||||||||||||||||||||||
| Total income tax (benefit) expense | $ | (13,715) | $ | 15,053 | $ | 27,296 | $ | (13,177) | $ | 17,681 | $ | 28,926 | ||||||||||||||||||||||||||
The components of the net deferred tax liability as of December 31 are presented below (in thousands of dollars):
| IDACORP | Idaho Power | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Deferred tax assets: | ||||||||||||||||||||||||||
| Regulatory liabilities | $ | 121,489 | $ | 127,634 | $ | 121,489 | $ | 127,634 | ||||||||||||||||||
| Deferred compensation | 24,483 | 24,782 | 24,483 | 24,782 | ||||||||||||||||||||||
| Deferred revenue | 70,326 | 64,592 | 70,326 | 64,592 | ||||||||||||||||||||||
| Tax credits | 70,854 | 66,783 | 67,930 | 53,859 | ||||||||||||||||||||||
| Partnership investments | 24,157 | 18,450 | 24,157 | 18,450 | ||||||||||||||||||||||
| Retirement benefits | 19,533 | 26,495 | 19,533 | 26,495 | ||||||||||||||||||||||
| Other | 37,884 | 24,869 | 37,831 | 24,826 | ||||||||||||||||||||||
| Total | 368,726 | 353,605 | 365,749 | 340,638 | ||||||||||||||||||||||
| Deferred tax liabilities: | ||||||||||||||||||||||||||
| Property, plant and equipment | 235,849 | 243,454 | 235,849 | 243,454 | ||||||||||||||||||||||
| Regulatory assets | 821,346 | 811,054 | 821,346 | 811,054 | ||||||||||||||||||||||
| Partnership investments | 4,309 | 4,613 | — | — | ||||||||||||||||||||||
| Retirement benefits | 65,214 | 75,716 | 65,214 | 75,716 | ||||||||||||||||||||||
| Wildfire mitigation plan deferral | 22,252 | 16,272 | 22,252 | 16,272 | ||||||||||||||||||||||
| Other | 22,641 | 24,727 | 22,027 | 23,588 | ||||||||||||||||||||||
| Total | 1,171,611 | 1,175,836 | 1,166,688 | 1,170,084 | ||||||||||||||||||||||
| Net deferred tax liabilities | $ | 802,885 | $ | 822,231 | $ | 800,939 | $ | 829,446 | ||||||||||||||||||
IDACORP's tax allocation agreement provides that each member of its consolidated group compute its income taxes on a separate company basis. Amounts payable or refundable are settled through IDACORP and are reported as taxes accrued or income taxes receivable, respectively, on the consolidated balance sheets of Idaho Power. See Note 1 - "Summary of Significant Accounting Policies" for further discussion of accounting policies related to income taxes.
Supplemental Disclosure of Cash Flow Information
Supplemental cash flow information related to cash paid for income taxes for the years ended December 31 are presented below (in thousands of dollars):
| IDACORP | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Federal | $ | 18,000 | $ | 14,000 | $ | — | ||||||||||||||
| Idaho | 5,600 | 10,300 | 5,300 | |||||||||||||||||
| Other | 892 | 900 | 900 | |||||||||||||||||
| Total cash paid for income taxes | $ | 24,492 | $ | 25,200 | $ | 6,200 | ||||||||||||||
| Idaho Power | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Federal | $ | 18,382 | $ | 30,615 | $ | 34,604 | ||||||||||||||
| Idaho | 7,522 | 5,598 | 15,765 | |||||||||||||||||
| Other | 841 | 905 | 1,446 | |||||||||||||||||
| Total cash paid to IDACORP related to income taxes | $ | 26,745 | $ | 37,118 | $ | 51,815 | ||||||||||||||
Tax Credit Carryforwards
As of December 31, 2025, IDACORP had $70.9 million of Idaho investment tax credit carryforward which expires from 2034 to 2039.
Uncertain Tax Positions
IDACORP and Idaho Power believe that they have no material income tax uncertainties for 2025 and prior tax years. Both companies recognize interest accrued related to unrecognized tax benefits as interest expense and penalties as other expense.
IDACORP and Idaho Power are subject to examination by their major tax jurisdictions - United States federal and the State of Idaho. The open tax years for examination are 2023 through 2025 for federal and 2022 through 2025 for Idaho. In May 2009, IDACORP formally entered the U.S. Internal Revenue Service Compliance Assurance Process (CAP) program for its 2009 tax year and has remained in the CAP program for all subsequent years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
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.