CMS ENERGY CORP
For the period ended Mar 31, 2025. Filed Apr 24, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 24, 2025
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7: Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
| Three Months Ended March 31 | 2025 | 2024 |
|---|---|---|
| CMS Energy, including Consumers | ||
| U.S. federal income tax rate | 21.0% | 21.0% |
| Increase (decrease) in income taxes from: | ||
| State and local income taxes, net of federal effect | 5.3 | 5.5 |
| Renewable energy tax credits | (5.7) | (6.0) |
| TCJA excess deferred taxes | (3.4) | (3.7) |
| Taxes attributable to noncontrolling interests | 0.6 | 1.1 |
| Other, net | (0.2) | 0.2 |
| Effective tax rate | 17.6% | 18.1% |
| Consumers | ||
| U.S. federal income tax rate | 21.0% | 21.0% |
| Increase (decrease) in income taxes from: | ||
| State and local income taxes, net of federal effect | 4.8 | 4.9 |
| Renewable energy tax credits | (3.3) | (4.0) |
| TCJA excess deferred taxes | (2.9) | (3.2) |
| Other, net | (0.3) | 0.2 |
| Effective tax rate | 19.3% | 18.9% |
State Income Tax Claim: In February 2025, CMS Energy received an adverse ruling from the Michigan Tax Tribunal in regards to the methodology of state apportionment for Consumers’ electricity sales to MISO. In March 2025, CMS Energy filed an appeal with the Michigan Court of Appeals and a final decision is not expected until 2026. CMS Energy and Consumers have evaluated and concluded their uncertain tax positions associated with this matter to be sufficient as of March 31, 2025. While CMS Energy and Consumers expect the appeal to prevail, if it were to fail, the companies would be required to revise the estimated value of their state deferred tax liabilities, which could result in a material impact to their results of operations.
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