v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
NEE's effective income tax rate is based on the composition of pretax income or loss. 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
 Three Months Ended March 31,
 20262025
(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%
$252 21.0 %$(12)21.0 %
Increases (reductions) resulting from:
State income taxes – net of federal income tax benefit
(28)(2.3)17 (29.6)
Nontaxable or nondeductible items:
Taxes attributable to noncontrolling interests103 8.6 78 (136.5)
Amortization of deferred regulatory credit(23)(1.9)(43)75.8 
Other – net
(18)(1.5)(16)27.3 
Clean energy tax credits(a)
(791)(66.0)(540)947.2 
Valuation adjustments
28 2.3 23 (40.1)
Other adjustments – net
(12)(1.0)(28)48.9 
Income tax benefit and effective tax rate
$(489)(40.8)%$(521)914.0 %
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(a)For the three months ended March 31, 2026, includes the impact from ITC amortization utilized as part of FPL's RSM. See Note 11 – Rate Regulation.
 
FPL
 Three Months Ended March 31,
 20262025
(millions, except for percentages)
Income taxes at U.S. statutory rate of 21%
$303 21.0 %$322 21.0 %
Increases (reductions) resulting from: 
State income taxes – net of federal income tax benefit
62 4.3 66 4.3 
Clean energy tax credits(a)
(367)(25.4)(126)(8.2)
Amortization of deferred regulatory credit(13)(0.9)(43)(2.8)
Other adjustments – net
(3)(0.2)(4)(0.3)
Income tax expense (benefit) and effective tax rate
$(18)(1.2)%$215 14.0 %
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(a)For the three months ended March 31, 2026, includes the impact from ITC amortization utilized as part of the RSM. See Note 11 – Rate Regulation.
NEE recognizes PTCs as wind and solar energy is generated and sold based on a per kWh rate prescribed in applicable federal and state statutes, which may differ significantly from amounts computed, on a quarterly basis, using an overall effective income tax rate anticipated for the full year. NEE uses this method of recognizing PTCs for specific reasons, including that PTCs are an integral part of the expected value of most wind and some solar projects and a fundamental component of such wind and solar projects' results of operations. PTCs, as well as ITCs, can significantly affect NEE's effective income tax rate depending on the amount of pretax income or loss. The amount of PTCs recognized can be significantly affected by wind and solar generation and by the roll off of PTCs after ten years of production absent a repowering of the wind and solar projects.