v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective January 1, 2025, NEE and FPL adopted an accounting standards update that provides guidance for reporting on income taxes and requires additional disclosures related to cash paid (received) for income taxes – net and the effective income tax rate. NEE and FPL adopted the updated standard for income taxes using the full retrospective approach, which changed the presentation of certain information below.

The components of income taxes are as follows:

NEEFPL
Years Ended December 31,Years Ended December 31,
202520242023202520242023
(millions)
Federal:
Current
$194 $208 $507 $121 $252 $990 
Deferred
(1,248)(150)368 288 422 (179)
Total federal(1,054)58 875 409 674 811 
State:      
Current78 126 161 161 116 294 
Deferred
174 155 (30)149 180 18 
Total state252 281 131 310 296 312 
Total income taxes$(802)$339 $1,006 $719 $970 $1,123 
A reconciliation of the income tax expense (benefit) and effective income tax rates based on the statutory U.S. federal income tax rate is as follows:

 NEE
 Years Ended December 31,
 202520242023
(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%
$951 21.0 %$1,268 21.0 %$1,530 21.0 %
Increases (reductions) resulting from:   
State income taxes – net of federal income tax benefit
199 
4.4(a)
223 
3.7(b)
102 
1.4(c)
Nontaxable or nondeductible items:
Taxes attributable to noncontrolling interests315 7.0 260 4.3 219 3.0 
Amortization of deferred regulatory credit(159)(3.5)(163)(2.7)(182)(2.5)
Other – net
(14)(0.3)(30)(0.5)(44)(0.6)
Clean energy tax credits
(2,075)(45.8)(1,201)(19.9)(605)(8.3)
Valuation allowance
95 2.1 48 0.8 22 0.3 
Other adjustments – net
(114)(2.6)(66)(1.1)(36)(0.5)
Income tax expense (benefit) and effective tax rate
$(802)(17.7)%$339 5.6 %$1,006 13.8 %
______________________
(a)State taxes in Florida made up greater than 50 percent of the tax effect in this category.
(b)State taxes in Florida and Massachusetts made up greater than 50 percent of the tax effect in this category.
(c)State taxes in Florida, California, Kansas, Oklahoma, New Hampshire, Massachusetts and Virginia made up greater than 50 percent of the tax effect in this category.

 
FPL
 Years Ended December 31,
 202520242023
(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%
$1,204 21.0 %$1,158 21.0 %$1,192 21.0 %
Increases (reductions) resulting from:   
State income taxes – net of federal income tax benefit(a)
246 4.3 237 4.3 244 4.3 
Clean energy tax credits
(522)(9.1)(237)(4.3)(114)(2.0)
Amortization of deferred regulatory credit(160)(2.8)(165)(3.0)(182)(3.2)
Other adjustments – net
(49)(0.9)(23)(0.4)(17)(0.3)
Income tax expense and effective tax rate
$719 12.5 %$970 17.6 %$1,123 19.8 %
______________________
(a)State taxes in Florida made up greater than 50 percent of the tax effect in this category.
The income tax effects of temporary differences giving rise to consolidated deferred income tax liabilities and assets are as follows:

NEEFPL
December 31,December 31,
2025202420252024
(millions)
Deferred tax liabilities:
Property-related$12,374 $11,558 $10,048 $9,272 
Pension708 637 525 495 
Investments in partnerships and joint ventures2,822 2,534 3 3 
Other2,275 2,168 1,448 1,463 
Total deferred tax liabilities18,179 16,897 12,024 11,233 
Deferred tax assets and valuation allowance:
Decommissioning reserves323 307 346 331 
Net operating loss carryforwards278 233 — — 
Tax credit carryforwards3,591 3,057 9 — 
ARO and accrued asset removal costs257 233 123 116 
Regulatory liabilities1,120 1,153 1,096 1,129 
Other791 652 295 219 
Valuation allowance(a)
(295)(266)(1)— 
Net deferred tax assets6,065 5,369 1,868 1,795 
Net deferred income taxes$12,114 $11,528 $10,156 $9,438 
______________________
(a)Reflects valuation allowances related to deferred state tax credits and state operating loss carryforwards.

Deferred tax assets and liabilities are included on the consolidated balance sheets as follows:

NEEFPL
December 31,December 31,
2025202420252024
(millions)
Noncurrent other assets$245 $221 $— $— 
Deferred income taxes – noncurrent liabilities
(12,359)(11,749)(10,156)(9,438)
Net deferred income taxes$(12,114)$(11,528)$(10,156)$(9,438)
The components of NEE's deferred tax assets relating to net operating loss carryforwards and tax credit carryforwards as of December 31, 2025 are as follows:


AmountExpiration
Dates
(millions)
Net operating loss carryforwards:
State$259 
(a)
2026 – 2045
Foreign19 
(b)
2028 – 2045
Net operating loss carryforwards$278 
Tax credit carryforwards: 
Federal$3,208 2038 – 2047
State376 
(c)
2026 – 2044
Foreign7 2034 – 2045
Tax credit carryforwards$3,591 
______________________
(a)Includes approximately $92 million of net operating loss carryforwards with an indefinite expiration period.
(b)Includes approximately $1 million of net operating loss carryforwards with an indefinite expiration period.
(c)Includes approximately $201 million of clean energy tax credit carryforwards with an indefinite expiration period.
The components of cash paid (received) for income taxes – net are as follows:

NEEFPL
Years Ended December 31,Years Ended December 31,
202520242023202520242023
(millions)
Cash paid (received) for income taxes – net:
Federal
$(1,264)$(1,010)$280 $(52)$242 $977 
State
(11)250 41 89 398 4 
Total
$(1,275)$(760)$321 $37 $640 $981 
States that exceed 5% of total cash paid (received) for income taxes – net:
Florida
(a)
$176 
(a)
$91 $397 
(a)
_____________________
(a)Jurisdiction below the threshold for the period presented.