Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax [Line Items]

Income Taxes

INCOME TAXES

Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):

	Alliant Energy			IPL			WPL
	2020	2019	2018	2020	2019	2018	2020	2019	2018
Current tax expense (benefit):
Federal	$1	($7)	($1)	$6	($11)	$15	($11)	$12	($9)
State	8	24	(5)	(1)	24	(7)	7	13	(5)
IPL’s tax benefit riders	—	(4)	(13)	—	(4)	(13)	—	—	—
Deferred tax expense (benefit):
Federal	22	70	68	30	26	10	(9)	31	44
State	8	42	30	(2)	31	7	10	6	22
Production tax credits	(95)	(55)	(30)	(80)	(42)	(14)	(15)	(13)	(15)
Investment tax credits	(1)	(1)	(1)	—	—	(1)	(1)	—	(1)
	($57)	$69	$48	($47)	$24	($3)	($19)	$49	$36

Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.

	Alliant Energy						IPL						WPL
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Statutory federal income tax rate	21	%	21	%	21	%	21	%	21	%	21	%	21	%	21	%	21	%
State income taxes, net of federal benefits	2		7		7		(1)		8		8		6		6		6
Production tax credits	(17)		(9)		(5)		(28)		(13)		(5)		(7)		(5)		(7)
Amortization of excess deferred taxes (Refer to Note 2)	(13)		(1)		(1)		(5)		—		—		(26)		(2)		—
Effect of rate-making on property-related differences	(3)		(6)		(8)		(4)		(10)		(14)		(2)		(3)		(2)
Adjustment for prior period taxes	1		1		(2)		1		3		(5)		—		—		—
IPL’s tax benefit riders	—		(1)		(2)		—		(1)		(5)		—		—		—
Federal Tax Reform adjustments	—		—		(1)		—		—		—		—		—		(2)
Other items, net	(1)		(1)		(1)		—		—		(1)		—		—		(1)
Overall income tax rate	(10	%)	11	%	8	%	(16	%)	8	%	(1	%)	(8	%)	17	%	15	%

Deferred Tax Assets and Liabilities - The deferred tax assets and liabilities included on the balance sheets at December 31 arise from the following temporary differences (in millions):

	Alliant Energy		IPL		WPL
	2020	2019	2020	2019	2020	2019
Deferred tax liabilities:
Property	$2,232	$2,022	$1,312	$1,184	$854	$770
ATC Holdings	116	111	—	—	—	—
Other	101	84	83	76	41	32
Total deferred tax liabilities	2,449	2,217	1,395	1,260	895	802
Deferred tax assets:
Federal credit carryforwards	454	355	258	175	175	160
Net operating losses carryforwards - federal	77	60	71	56	1	1
Net operating losses carryforwards - state	37	37	1	1	—	—
Other	73	61	30	20	18	16
Subtotal deferred tax assets	641	513	360	252	194	177
Valuation allowances	(6)	(10)	—	—	(1)	(1)
Total deferred tax assets	635	503	360	252	193	176
Total deferred tax liabilities, net	$1,814	$1,714	$1,035	$1,008	$702	$626

Carryforwards - At December 31, 2020, carryforwards and expiration dates were estimated as follows (in millions):

	Range of Expiration Dates	Alliant Energy	IPL	WPL
Federal net operating losses	2037	$366	$339	$3
State net operating losses	2021-2040	622	10	2
Federal tax credits	2022-2040	454	258	175

Valuation Allowances - Alliant Energy currently expects its federal net operating losses carryforwards will not be fully utilized until 2023. Because taxable income must be reduced by federal net operating losses carryforwards prior to utilizing federal tax credit carryforwards, Alliant Energy currently does not expect to utilize 2002 vintage federal credit carryforwards prior to their expiration in 2022, resulting in valuation allowances that remain as of December 31, 2020. Alliant Energy currently expects to be able to utilize 2003 vintage federal credit carryforwards prior to their expiration in 2023, and as a result, in 2020, Alliant Energy reversed $4 million of previously recorded valuation allowances related to these federal credit carryforwards.

Uncertain Tax Positions - At December 31, 2020, 2019 and 2018, there were no uncertain tax positions or penalties accrued related to uncertain tax positions. As of December 31, 2020, no material changes to unrecognized tax benefits are expected during the next 12 months.

Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions for each of Alliant Energy, IPL and WPL are as follows:

Consolidated federal income tax returns (a)	2017	-	2019
Consolidated Iowa income tax returns (b)	2017	-	2019
Wisconsin combined tax returns (c)	2016	-	2019

(a)The 2017 federal tax return is effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.

(b)The statute of limitations for these Iowa tax returns expires three years from each filing date.

(c)The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.

Federal Tax Reform Adjustments - In 2018, additional rules were issued related to Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year 2017. As a result of these clarifying rules, Alliant Energy, IPL and WPL recorded tax benefits of $6 million, $1 million and $5 million, respectively, in 2018.

Iowa Tax Reform - In 2018, Iowa tax reform was enacted, resulting in a reduction in the Iowa income tax rate from 12% to 9.8%, effective January 1, 2021, and the elimination of the deduction for federal income taxes, effective January 1, 2022, for taxes related to 2020 and prior.

IPL [Member]

Income Tax [Line Items]

Income Taxes

INCOME TAXES

Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):

	Alliant Energy			IPL			WPL
	2020	2019	2018	2020	2019	2018	2020	2019	2018
Current tax expense (benefit):
Federal	$1	($7)	($1)	$6	($11)	$15	($11)	$12	($9)
State	8	24	(5)	(1)	24	(7)	7	13	(5)
IPL’s tax benefit riders	—	(4)	(13)	—	(4)	(13)	—	—	—
Deferred tax expense (benefit):
Federal	22	70	68	30	26	10	(9)	31	44
State	8	42	30	(2)	31	7	10	6	22
Production tax credits	(95)	(55)	(30)	(80)	(42)	(14)	(15)	(13)	(15)
Investment tax credits	(1)	(1)	(1)	—	—	(1)	(1)	—	(1)
	($57)	$69	$48	($47)	$24	($3)	($19)	$49	$36

Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.

	Alliant Energy						IPL						WPL
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Statutory federal income tax rate	21	%	21	%	21	%	21	%	21	%	21	%	21	%	21	%	21	%
State income taxes, net of federal benefits	2		7		7		(1)		8		8		6		6		6
Production tax credits	(17)		(9)		(5)		(28)		(13)		(5)		(7)		(5)		(7)
Amortization of excess deferred taxes (Refer to Note 2)	(13)		(1)		(1)		(5)		—		—		(26)		(2)		—
Effect of rate-making on property-related differences	(3)		(6)		(8)		(4)		(10)		(14)		(2)		(3)		(2)
Adjustment for prior period taxes	1		1		(2)		1		3		(5)		—		—		—
IPL’s tax benefit riders	—		(1)		(2)		—		(1)		(5)		—		—		—
Federal Tax Reform adjustments	—		—		(1)		—		—		—		—		—		(2)
Other items, net	(1)		(1)		(1)		—		—		(1)		—		—		(1)
Overall income tax rate	(10	%)	11	%	8	%	(16	%)	8	%	(1	%)	(8	%)	17	%	15	%

Deferred Tax Assets and Liabilities - The deferred tax assets and liabilities included on the balance sheets at December 31 arise from the following temporary differences (in millions):

	Alliant Energy		IPL		WPL
	2020	2019	2020	2019	2020	2019
Deferred tax liabilities:
Property	$2,232	$2,022	$1,312	$1,184	$854	$770
ATC Holdings	116	111	—	—	—	—
Other	101	84	83	76	41	32
Total deferred tax liabilities	2,449	2,217	1,395	1,260	895	802
Deferred tax assets:
Federal credit carryforwards	454	355	258	175	175	160
Net operating losses carryforwards - federal	77	60	71	56	1	1
Net operating losses carryforwards - state	37	37	1	1	—	—
Other	73	61	30	20	18	16
Subtotal deferred tax assets	641	513	360	252	194	177
Valuation allowances	(6)	(10)	—	—	(1)	(1)
Total deferred tax assets	635	503	360	252	193	176
Total deferred tax liabilities, net	$1,814	$1,714	$1,035	$1,008	$702	$626

Carryforwards - At December 31, 2020, carryforwards and expiration dates were estimated as follows (in millions):

	Range of Expiration Dates	Alliant Energy	IPL	WPL
Federal net operating losses	2037	$366	$339	$3
State net operating losses	2021-2040	622	10	2
Federal tax credits	2022-2040	454	258	175

Valuation Allowances - Alliant Energy currently expects its federal net operating losses carryforwards will not be fully utilized until 2023. Because taxable income must be reduced by federal net operating losses carryforwards prior to utilizing federal tax credit carryforwards, Alliant Energy currently does not expect to utilize 2002 vintage federal credit carryforwards prior to their expiration in 2022, resulting in valuation allowances that remain as of December 31, 2020. Alliant Energy currently expects to be able to utilize 2003 vintage federal credit carryforwards prior to their expiration in 2023, and as a result, in 2020, Alliant Energy reversed $4 million of previously recorded valuation allowances related to these federal credit carryforwards.

Uncertain Tax Positions - At December 31, 2020, 2019 and 2018, there were no uncertain tax positions or penalties accrued related to uncertain tax positions. As of December 31, 2020, no material changes to unrecognized tax benefits are expected during the next 12 months.

Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions for each of Alliant Energy, IPL and WPL are as follows:

Consolidated federal income tax returns (a)	2017	-	2019
Consolidated Iowa income tax returns (b)	2017	-	2019
Wisconsin combined tax returns (c)	2016	-	2019

(a)The 2017 federal tax return is effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.

(b)The statute of limitations for these Iowa tax returns expires three years from each filing date.

(c)The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.

Federal Tax Reform Adjustments - In 2018, additional rules were issued related to Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year 2017. As a result of these clarifying rules, Alliant Energy, IPL and WPL recorded tax benefits of $6 million, $1 million and $5 million, respectively, in 2018.

Iowa Tax Reform - In 2018, Iowa tax reform was enacted, resulting in a reduction in the Iowa income tax rate from 12% to 9.8%, effective January 1, 2021, and the elimination of the deduction for federal income taxes, effective January 1, 2022, for taxes related to 2020 and prior.

WPL [Member]

Income Tax [Line Items]

Income Taxes

INCOME TAXES

Income Tax Expense (Benefit) - The components of “Income tax expense (benefit)” in the income statements were as follows (in millions):

	Alliant Energy			IPL			WPL
	2020	2019	2018	2020	2019	2018	2020	2019	2018
Current tax expense (benefit):
Federal	$1	($7)	($1)	$6	($11)	$15	($11)	$12	($9)
State	8	24	(5)	(1)	24	(7)	7	13	(5)
IPL’s tax benefit riders	—	(4)	(13)	—	(4)	(13)	—	—	—
Deferred tax expense (benefit):
Federal	22	70	68	30	26	10	(9)	31	44
State	8	42	30	(2)	31	7	10	6	22
Production tax credits	(95)	(55)	(30)	(80)	(42)	(14)	(15)	(13)	(15)
Investment tax credits	(1)	(1)	(1)	—	—	(1)	(1)	—	(1)
	($57)	$69	$48	($47)	$24	($3)	($19)	$49	$36

Income Tax Rates - The overall income tax rates shown in the following table were computed by dividing income tax expense (benefit) by income from continuing operations before income taxes.

	Alliant Energy						IPL						WPL
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Statutory federal income tax rate	21	%	21	%	21	%	21	%	21	%	21	%	21	%	21	%	21	%
State income taxes, net of federal benefits	2		7		7		(1)		8		8		6		6		6
Production tax credits	(17)		(9)		(5)		(28)		(13)		(5)		(7)		(5)		(7)
Amortization of excess deferred taxes (Refer to Note 2)	(13)		(1)		(1)		(5)		—		—		(26)		(2)		—
Effect of rate-making on property-related differences	(3)		(6)		(8)		(4)		(10)		(14)		(2)		(3)		(2)
Adjustment for prior period taxes	1		1		(2)		1		3		(5)		—		—		—
IPL’s tax benefit riders	—		(1)		(2)		—		(1)		(5)		—		—		—
Federal Tax Reform adjustments	—		—		(1)		—		—		—		—		—		(2)
Other items, net	(1)		(1)		(1)		—		—		(1)		—		—		(1)
Overall income tax rate	(10	%)	11	%	8	%	(16	%)	8	%	(1	%)	(8	%)	17	%	15	%

Deferred Tax Assets and Liabilities - The deferred tax assets and liabilities included on the balance sheets at December 31 arise from the following temporary differences (in millions):

	Alliant Energy		IPL		WPL
	2020	2019	2020	2019	2020	2019
Deferred tax liabilities:
Property	$2,232	$2,022	$1,312	$1,184	$854	$770
ATC Holdings	116	111	—	—	—	—
Other	101	84	83	76	41	32
Total deferred tax liabilities	2,449	2,217	1,395	1,260	895	802
Deferred tax assets:
Federal credit carryforwards	454	355	258	175	175	160
Net operating losses carryforwards - federal	77	60	71	56	1	1
Net operating losses carryforwards - state	37	37	1	1	—	—
Other	73	61	30	20	18	16
Subtotal deferred tax assets	641	513	360	252	194	177
Valuation allowances	(6)	(10)	—	—	(1)	(1)
Total deferred tax assets	635	503	360	252	193	176
Total deferred tax liabilities, net	$1,814	$1,714	$1,035	$1,008	$702	$626

Carryforwards - At December 31, 2020, carryforwards and expiration dates were estimated as follows (in millions):

	Range of Expiration Dates	Alliant Energy	IPL	WPL
Federal net operating losses	2037	$366	$339	$3
State net operating losses	2021-2040	622	10	2
Federal tax credits	2022-2040	454	258	175

Valuation Allowances - Alliant Energy currently expects its federal net operating losses carryforwards will not be fully utilized until 2023. Because taxable income must be reduced by federal net operating losses carryforwards prior to utilizing federal tax credit carryforwards, Alliant Energy currently does not expect to utilize 2002 vintage federal credit carryforwards prior to their expiration in 2022, resulting in valuation allowances that remain as of December 31, 2020. Alliant Energy currently expects to be able to utilize 2003 vintage federal credit carryforwards prior to their expiration in 2023, and as a result, in 2020, Alliant Energy reversed $4 million of previously recorded valuation allowances related to these federal credit carryforwards.

Uncertain Tax Positions - At December 31, 2020, 2019 and 2018, there were no uncertain tax positions or penalties accrued related to uncertain tax positions. As of December 31, 2020, no material changes to unrecognized tax benefits are expected during the next 12 months.

Open tax years - Tax years that remain subject to the statute of limitations in the major jurisdictions for each of Alliant Energy, IPL and WPL are as follows:

Consolidated federal income tax returns (a)	2017	-	2019
Consolidated Iowa income tax returns (b)	2017	-	2019
Wisconsin combined tax returns (c)	2016	-	2019

(a)The 2017 federal tax return is effectively settled as a result of participation in the IRS Compliance Assurance Program, which allows Alliant Energy and the IRS to work together to resolve issues related to Alliant Energy’s current tax year before filing its federal income tax return. The statute of limitations for these federal tax returns expires three years from each filing date.

(b)The statute of limitations for these Iowa tax returns expires three years from each filing date.

(c)The statute of limitations for these Wisconsin combined tax returns expires four years from each filing date.

Federal Tax Reform Adjustments - In 2018, additional rules were issued related to Federal Tax Reform, including clarifications of the treatment of bonus depreciation deductions, which impacted the federal income tax return for the calendar year 2017. As a result of these clarifying rules, Alliant Energy, IPL and WPL recorded tax benefits of $6 million, $1 million and $5 million, respectively, in 2018.

Iowa Tax Reform - In 2018, Iowa tax reform was enacted, resulting in a reduction in the Iowa income tax rate from 12% to 9.8%, effective January 1, 2021, and the elimination of the deduction for federal income taxes, effective January 1, 2022, for taxes related to 2020 and prior.