INCOME TAXES: Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2020

A reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:


	IDACORP						Idaho Power
	2020		2019		2018		2020		2019		2018
	(thousands of dollars)
Federal income tax expense at statutory rate	$	55,885	$	54,046	$	51,279	$	55,394	$	53,099	$	50,536
Change in taxes resulting from:
AFUDC	(8,637)		(7,941)		(7,246)		(8,637)		(7,941)		(7,246)
Capitalized interest	1,044		976		928		1,044		976		928
Investment tax credits	(2,906)		(6,252)		(2,929)		(2,906)		(6,252)		(2,929)
Removal costs	(3,148)		(3,139)		(3,471)		(3,148)		(3,139)		(3,471)
Capitalized overhead costs	(7,560)		(7,140)		(6,720)		(7,560)		(7,140)		(6,720)
Capitalized repair costs	(18,480)		(18,480)		(17,850)		(18,480)		(18,480)		(17,850)
Bond redemption costs	(726)		—		(1,029)		(726)		—		(1,029)
Remeasurement of deferred taxes	—		—		(5,411)		—		—		(5,664)




State income taxes, net of federal benefit	8,804		8,627		8,512		9,052		8,401		8,532
Depreciation	13,589		14,641		13,110		13,589		14,641		13,110
Excess deferred income tax reversal	(4,885)		(6,181)		(7,289)		(4,885)		(6,181)		(7,289)

Income tax return adjustments	(2,552)		745		(5,076)		(2,508)		993		(4,968)
Affordable housing tax credits	(5,315)		(2,874)		(2,560)		—		—		—
Affordable housing investment distributions	(13)		(3,232)		(267)		—		—		—
Affordable housing investment amortization	3,754		1,825		1,519		—		—		—
Other, net	(154)		(1,114)		1,886		319		(560)		2,372
Total income tax expense	$	28,700	$	24,507	$	17,386	$	30,548	$	28,417	$	18,312
Effective tax rate	10.8%		9.5%		7.1%		11.6%		11.2%		7.6%

The items comprising income tax expense are as follows:


	IDACORP						Idaho Power
	2020		2019		2018		2020		2019		2018
	(thousands of dollars)
Income taxes current:
Federal	$	7,800	$	8,830	$	5,390	$	30,464	$	25,338	$	24,919
State	3,215		4,865		3,328		6,409		(4,392)		(2,049)
Total	11,015		13,695		8,718		36,873		20,946		22,870
Income taxes deferred:
Federal	11,543		9,486		1,649		(4,905)		(4,599)		(15,388)
State	(1,414)		1,159		30		(4,241)		10,054		5,425
Total	10,129		10,645		1,679		(9,146)		5,455		(9,963)
Investment tax credits:
Deferred	5,727		8,268		8,334		5,727		8,268		8,334
Restored	(2,906)		(6,252)		(2,929)		(2,906)		(6,252)		(2,929)
Total	2,821		2,016		5,405		2,821		2,016		5,405
Affordable housing investments	4,735		(1,849)		1,584		—		—		—
Total income tax expense	$	28,700	$	24,507	$	17,386	$	30,548	$	28,417	$	18,312

The components of the net deferred tax liability are as follows:


	IDACORP				Idaho Power
	2020		2019		2020		2019
	(thousands of dollars)
Deferred tax assets:
Regulatory liabilities	$	95,883	$	96,599	$	95,883	$	96,599

Deferred compensation	22,576		21,946		22,576		21,946
Deferred revenue	43,525		39,039		43,525		39,039
Tax credits	61,707		76,125		30,215		24,489

Partnership investments	10,189		7,911		7,211		4,912

Retirement benefits	142,864		114,124		142,864		114,124
Other	15,005		11,347		14,792		11,107
Total	391,749		367,091		357,066		312,216
Deferred tax liabilities:
Property, plant and equipment	282,983		286,583		282,983		286,583
Regulatory assets	687,628		646,886		687,628		646,886



Partnership investments	3,257		3,565		—		—
Retirement benefits	164,399		132,764		164,399		132,764
Other	53,733		43,524		51,202		40,385
Total	1,192,000		1,113,322		1,186,212		1,106,618
Net deferred tax liabilities	$	800,251	$	746,231	$	829,146	$	794,402