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INCOME TAXES (Notes)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Geographic Allocation of Income and Provision for Income Taxes
In millions202320222021
Income (loss) before income taxes
Domestic $455 $767 $531 
Foreign (1)(1)(2)
Income before income taxes$454 $766 $529 
Current tax expense (benefit)
Federal$96 $157 $(11)
State and local(6)9 5 
Foreign1 1 20 
Total current tax expense$91 $167 $14 
Deferred tax expense (benefit)
Federal$(19)$(2)$122 
State and local1 3 23 
Foreign— 4 (5)
Total deferred tax expense$(18)$5 $140 
Provision for income taxes $73 $172 $154 
Net income$381 $594 $375 
Reconciliation to U.S. Statutory Rate202320222021
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
Unrecognized tax benefits and related interest(2.7)(0.7)3.0 
State and local tax impact(1.2)1.7 5.3 
Other - net(1.0)0.5 (0.2)
Effective Tax Rate16.1 %22.5 %29.1 %

Deferred Tax Balances at Dec 3120232022
In millionsAssetsLiabilitiesAssetsLiabilities
Property$— $123 $— $154 
Tax loss and credit carryforwards11 — 26 — 
Postretirement benefit obligations92 — 72 — 
Other accruals and reserves270 — 293 3 
Inventory2 — 2 — 
Other - net16 — 18 — 
Subtotal $391 $123 $411 $157 
Valuation allowances 1
(11)— (15)— 
Total $380 $123 $396 $157 
1.Primarily related to the realization of recorded tax benefits on state tax loss carryforwards from operations in the United States.

Operating Loss and Tax Credit Carryforwards at Dec 3120232022
In millionsAssetsAssets
Operating loss carryforwards
Expire within 5 years$5 $8 
Expire after 5 years or indefinite expiration3 12 
Total operating loss carryforwards$8 $20 
Tax credit carryforwards
Expire within 5 years$2 $5 
Expire after 5 years or indefinite expiration1 1 
Total tax credit carryforwards$3 $6 
Total tax loss and tax credit carryforwards$11 $26 

Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested were zero at December 31, 2023 and December 31, 2022. Accordingly, there are no unrecognized deferred tax liabilities related to such earnings.

The Corporation is included in TDCC's consolidated federal income tax group. Current and deferred tax expenses are calculated for the Corporation as a stand-alone group and are allocated to the group from the consolidated totals, consistent with the TDCC-UCC Tax Sharing Agreement. The amounts reported as income taxes payable or receivable represent the Corporation's payment obligation (or refundable amount) to TDCC based on a theoretical tax liability calculated on a separate return method.

Under this method, in 2023, the U.S. Gulf Coast Infrastructure Assets transactions and sale of a portion of UCC's ownership interest in Dow Technology Investments LLC, as discussed in Note 17, resulted in the recognition of a $301 million tax payable, included in “Other noncurrent obligations” in the consolidated balance sheets.
The following table provides a reconciliation of the Corporation's unrecognized tax benefits:

Total Gross Unrecognized Tax Benefits
In millions202320222021
Total unrecognized tax benefits at Jan 1$8 $8 $1 
Decreases related to positions taken on items from prior years— — (1)
Increases related to positions taken on items from prior years — — 8 
Total unrecognized tax benefits at Dec 31$8 $8 $8 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$8 $8 $8 
Total amount of interest and penalties (benefit) recognized in "Provision for income taxes"$(12)$(10)$11 
Total accrual for interest and penalties recognized in the consolidated balance sheets$11 $10 $12 

During 2021, the Corporation recorded an uncertain tax position related to a foreign jurisdiction.

The Corporation is currently under examination in a number of tax jurisdictions, including the U.S. federal and various state jurisdictions. The earliest open tax years are 2004 for state income taxes and 2007 for federal income taxes in the United States.