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INCOME TAXES:
 12 Months Ended
Dec. 31, 2021
Income Taxes [Abstract]  
Income Taxes INCOME TAXES
 
A reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:
 IDACORPIdaho Power
 202120202019202120202019
(thousands of dollars)
Federal income tax expense at statutory rate$59,317 $55,885 $54,046 $59,111 $55,394 $53,099 
Change in taxes resulting from:     
AFUDC(9,141)(8,637)(7,941)(9,141)(8,637)(7,941)
Capitalized interest1,077 1,044 976 1,077 1,044 976 
Investment tax credits(2,866)(2,906)(6,252)(2,866)(2,906)(6,252)
Removal costs(3,302)(3,148)(3,139)(3,302)(3,148)(3,139)
Capitalized overhead costs(8,190)(7,560)(7,140)(8,190)(7,560)(7,140)
Capitalized repair costs(17,430)(18,480)(18,480)(17,430)(18,480)(18,480)
Bond redemption costs— (726)— — (726)— 
State income taxes, net of federal benefit11,359 8,804 8,627 11,633 9,052 8,401 
Depreciation14,233 13,589 14,641 14,233 13,589 14,641 
Excess deferred income tax reversal(8,958)(4,885)(6,181)(8,958)(4,885)(6,181)
Income tax return adjustments3,169 (2,552)745 1,759 (2,508)993 
Real Estate-related tax credits(6,245)(5,315)(2,874)— — — 
Real Estate-related investment distributions(1,010)(13)(3,232)— — — 
Real Estate-related investment amortization4,095 3,754 1,825 — — — 
Other, net804 (154)(1,114)331 319 (560)
Total income tax expense$36,912 $28,700 $24,507 $38,257 $30,548 $28,417 
Effective tax rate13.1%10.8%9.5%13.6%11.6%11.2%
The items comprising income tax expense are as follows:
 IDACORPIdaho Power
 202120202019202120202019
(thousands of dollars)
Income taxes current:      
Federal$15,210 $7,800 $8,830 $40,525 $30,464 $25,338 
State6,630 3,215 4,865 12,932 6,409 (4,392)
Total21,840 11,015 13,695 53,457 36,873 20,946 
Income taxes deferred:      
Federal(1,787)11,543 9,486 (21,737)(4,905)(4,599)
State1,154 (1,414)1,159 (5,295)(4,241)10,054 
Total(633)10,129 10,645 (27,032)(9,146)5,455 
Investment tax credits:      
Deferred14,698 5,727 8,268 14,698 5,727 8,268 
Restored(2,866)(2,906)(6,252)(2,866)(2,906)(6,252)
Total11,832 2,821 2,016 11,832 2,821 2,016 
Real estate-related investments at IFS3,873 4,735 (1,849)— — — 
Total income tax expense$36,912 $28,700 $24,507 $38,257 $30,548 $28,417 

The components of the net deferred tax liability are as follows:
 IDACORPIdaho Power
 2021202020212020
 (thousands of dollars)
Deferred tax assets:    
Regulatory liabilities$96,880 $95,883 $96,880 $95,883 
Deferred compensation23,333 22,576 23,333 22,576 
Deferred revenue48,318 43,525 48,318 43,525 
Tax credits41,896 61,707 35,781 30,215 
Partnership investments12,265 10,189 11,949 7,211 
Retirement benefits110,997 142,864 110,997 142,864 
Other17,066 15,005 16,893 14,792 
Total350,755 391,749 344,151 357,066 
Deferred tax liabilities:  
Property, plant and equipment272,530 282,983 272,530 282,983 
Regulatory assets721,276 687,628 721,276 687,628 
Partnership investments2,824 3,257 — — 
Retirement benefits138,154 164,399 138,154 164,399 
Other58,346 53,733 57,062 51,202 
Total1,193,130 1,192,000 1,189,022 1,186,212 
Net deferred tax liabilities$842,375 $800,251 $844,871 $829,146 

IDACORP's tax allocation agreement provides that each member of its consolidated group compute its income taxes on a separate company basis. Amounts payable or refundable are settled through IDACORP and are reported as taxes accrued or income taxes receivable, respectively, on the consolidated balance sheets of Idaho Power. See Note 1 - "Summary of Significant Accounting Policies" for further discussion of accounting policies related to income taxes.

Tax Credit Carryforwards

As of December 31, 2021, IDACORP had $41.9 million of Idaho investment tax credit carryforwards, which expire from 2026 to 2035.  
Uncertain Tax Positions

IDACORP and Idaho Power believe that they have no material income tax uncertainties for 2021 and prior tax years. Both companies recognize interest accrued related to unrecognized tax benefits as interest expense and penalties as other expense. 
 
IDACORP and Idaho Power are subject to examination by their major tax jurisdictions - United States federal and the State of Idaho. The open tax years for examination are 2020-2021 for federal and 2016-2021 for Idaho. The Idaho State Tax Commission began its examination of the 2016-2018 tax years in March of 2020. In May 2009, IDACORP formally entered the U.S. Internal Revenue Service (IRS) Compliance Assurance Process (CAP) program for its 2009 tax year and has remained in the CAP program for all subsequent years. The CAP program provides for IRS examination and issue resolution throughout the current year with the objective of return filings containing no contested items. The IRS moved IDACORP from the maintenance phase of CAP to the bridge phase for both the 2020 and 2021 tax years.