Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

11. Income Taxes

Effective Income Tax Rate

Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate was as follows:

	For the three months ended March 31,
	2024		2023
U.S. corporate income tax rate	21	%		21	%
Dividends received deduction	(3)			9
Tax credits	(3)			6
Employee compensation	(1)			4
Interest exclusion from taxable income	(1)			3
Impact of equity method presentation	(1)			3
Low income housing tax credit amortization	2			(5)
Local country permanent tax adjustments	—			2
Global Intangible Low-Taxed Income	—			(6)
Foreign country statutory rate differential	—			(2)
Other	1			2
Effective income tax rate	15	%		37	%

Pillar Two Model Rules

We are currently monitoring global enactments of the Pillar Two model rules proposed by the Organisation for Economic Co-operation and Development, which brings forward a 15% global minimum tax. Generally, a company is required to consider the impact of new tax law on realizability of its deferred tax assets (“DTAs”), including determination of whether a change to its valuation allowance amounts is necessary. We made an accounting policy election to disregard the Pillar Two model rules when evaluating DTAs and rather recognize a current period tax expense when incurred.