Vistra Corp.

5. GOVERNMENT GRANTS

IRA

In August 2022, the U.S. enacted the IRA, which introduced various energy tax credits. Among these, it acknowledged the importance of existing carbon-free nuclear power by establishing a nuclear Production Tax Credit under section 45U (nuclear PTC), a solar PTC, new technology-neutral ITCs and PTCs that apply to various different clean energy technologies, and a new stand-alone battery storage investment tax credit. The nuclear PTC is available to existing nuclear facilities from 2024 through 2032 and provides a federal tax credit of up to $15 per MWh, subject to an annually inflated gross-receipts based phase out. The Company accounts for transferable ITCs and PTCs we expect to receive in accordance with ASC 832, Government Grants, as amended by ASU No. 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. Transferable PTCs, when recognized, are included in operating revenues within the condensed consolidated statement of operations. See Note 3 for additional information.

Transferable Nuclear PTCs

We recognized transferable nuclear PTC revenues of $162 million in each of the three and nine months ended September 30, 2026 and $145 million in each of the three and nine months ended September 30, 2025. Nuclear PTC revenues are an estimate based on projected annual gross receipts generated from qualifying nuclear production in 2026 and 2025 and reflect our determination that we will meet the prevailing wage requirements necessary to earn the five times multiplier. The amount recognized in the nine months ended September 30, 2026 and 2025 reflects a pro-rata allocation of the forecasted annual nuclear PTC revenue based on actual qualifying nuclear production during the period. Our computation of forecasted gross receipts includes settled spot energy revenues and capacity revenues (applicable to our PJM nuclear units only) at each nuclear unit and excludes any hedges and ancillary service revenue. Treasury regulations may further define the scope of the legislation in many important respects, including interpretive guidance on the definition of gross receipts for the nuclear PTC. Any interpretive guidance on the definition of gross receipts that differs from the interpretation used in our estimate could result in a material change to PTC revenues recorded in 2026 and 2025 and would be reflected as a change in estimate in the period in which the guidance is received.

Sales of Transferable PTCs

In September 2026, we sold $220 million of transferable nuclear PTCs recognized from qualifying 2025 nuclear generation. Cash proceeds of $206 million were received in October 2026.

During 2025, we sold $490 million of transferable nuclear PTCs recognized from qualifying 2024 nuclear generation, of which $200 million was sold in January 2025, $90 million was sold in May and June 2025, and $200 million was sold in September 2025. Cash proceeds of $278 million and $469 million were received during the three and nine months ended September 30, 2025, respectively.

Transferable ITCs

In September 2026, our Pulaski 405 MW solar facility in Illinois met the requirements to be placed in service. As a result, in each of the three and nine months ended September 30, 2026, we recognized $232 million of transferable ITCs associated with the project in other noncurrent assets in the condensed consolidated balance sheet.

In July 2026, our Deer Creek 50 MW solar /50 MW battery ESS facility in California met the requirements to be placed in service. As a result, in each of the three and nine months ended September 30, 2026, we recognized $79 million of transferable ITCs associated with the project in other noncurrent assets in the condensed consolidated balance sheet.

In March 2026, our Newton 52 MW solar /2 MW battery ESS facility in Illinois met the requirements to be placed in service. As a result, in the nine months ended September 30, 2026, we recognized $46 million of transferable ITCs associated with the project in other noncurrent assets in the condensed consolidated balance sheet.

In October 2025, our Oak Hill 200 MW solar facility in Texas met the requirements to be placed in service. As a result, we recognized transferable ITCs associated with the project of $98 million in the three months ended December 31, 2025 and $6 million in each of the three and nine months ended September 30, 2026, in other noncurrent assets in the consolidated balance sheet.