INCOME TAXES: Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2021

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


	IDACORP						Idaho Power
	2021		2020		2019		2021		2020		2019
	(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 interest	1,077		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 benefit	11,359		8,804		8,627		11,633		9,052		8,401
Depreciation	14,233		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 adjustments	3,169		(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 amortization	4,095		3,754		1,825		—		—		—
Other, net	804		(154)		(1,114)		331		319		(560)
Total income tax expense	$	36,912	$	28,700	$	24,507	$	38,257	$	30,548	$	28,417
Effective tax rate	13.1%		10.8%		9.5%		13.6%		11.6%		11.2%

The items comprising income tax expense are as follows:


	IDACORP						Idaho Power
	2021		2020		2019		2021		2020		2019
	(thousands of dollars)
Income taxes current:
Federal	$	15,210	$	7,800	$	8,830	$	40,525	$	30,464	$	25,338
State	6,630		3,215		4,865		12,932		6,409		(4,392)
Total	21,840		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)
State	1,154		(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:
Deferred	14,698		5,727		8,268		14,698		5,727		8,268
Restored	(2,866)		(2,906)		(6,252)		(2,866)		(2,906)		(6,252)
Total	11,832		2,821		2,016		11,832		2,821		2,016
Real estate-related investments at IFS	3,873		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:


	IDACORP				Idaho Power
	2021		2020		2021		2020
	(thousands of dollars)
Deferred tax assets:
Regulatory liabilities	$	96,880	$	95,883	$	96,880	$	95,883

Deferred compensation	23,333		22,576		23,333		22,576
Deferred revenue	48,318		43,525		48,318		43,525
Tax credits	41,896		61,707		35,781		30,215

Partnership investments	12,265		10,189		11,949		7,211

Retirement benefits	110,997		142,864		110,997		142,864
Other	17,066		15,005		16,893		14,792
Total	350,755		391,749		344,151		357,066
Deferred tax liabilities:
Property, plant and equipment	272,530		282,983		272,530		282,983
Regulatory assets	721,276		687,628		721,276		687,628



Partnership investments	2,824		3,257		—		—
Retirement benefits	138,154		164,399		138,154		164,399
Other	58,346		53,733		57,062		51,202
Total	1,193,130		1,192,000		1,189,022		1,186,212
Net deferred tax liabilities	$	842,375	$	800,251	$	844,871	$	829,146