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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
North Carolina's 2021 Appropriations Act
On November 18, 2021, North Carolina Senate Bill 105 (SB 105) was signed into law by Governor Roy Cooper. Starting with tax year 2025, SB 105 begins phasing out the North Carolina corporate income tax rate over five years, from a statutory rate of 2.5% to zero. Duke Energy recorded a net reduction of approximately $490 million to its North Carolina deferred tax liability in the fourth quarter of 2021. The majority of this deferred tax liability reduction was offset by recording a regulatory liability pending NCUC determination of the disposition of the amounts related to Duke Energy Carolinas, Duke Energy Progress and Piedmont. In addition, Duke Energy recorded a net reduction of North Carolina consolidating deferred tax assets of approximately $25 million to deferred state income tax expense in the fourth quarter of 2021. North Carolina SB 105 did not have a significant impact on the financial position, results of operation, or cash flows of Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress or Piedmont.
Consolidated Appropriations Act
On December 27, 2020, the Consolidated Appropriations Act (CAA) was signed into law. In addition to the CAA providing funding for government operations, it also provided tax provisions to assist with COVID-19 relief, including extending certain expiring tax provisions. The company has reviewed the provisions of the CAA and has determined that there are no material impacts on the financial statements as a result of the CAA being signed into law.
CARES Act
On March 27, 2020, the CARES Act was enacted. The CARES Act is an emergency economic stimulus package in response to the COVID-19 pandemic. Among other provisions, the CARES Act accelerates the remaining AMT credit refund allowances resulting in taxpayers being able to immediately claim a refund in full for any AMT credit carryforwards and deferral of certain 2020 payroll taxes. In the third quarter of 2020, Duke Energy received $572 million related to these AMT credit carryforwards and $19 million of interest income. In addition, the company deferred approximately $117 million of payroll taxes, of which, 50% were paid by December 31, 2021, with the remaining 50% payable by December 31, 2022. The other provisions within the CARES Act do not materially impact Duke Energy's income tax accounting.
Income Tax Expense
Components of Income Tax Expense
 Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes
Federal $(2)$241 $(15)$113 $(75)$(8)$65 $23 
State 2 23 (4)8 (17)(2)7 3 
Foreign 2 — — — — — — — 
Total current income taxes 2 264 (19)121 (92)(10)72 26 
Deferred income taxes       
Federal 199 (130)203 (16)202 35 19 17 
State (1)(79)47 (26)77 5 16 (13)
Total deferred income taxes(a)
198 (209)250 (42)279 40 35 4 
ITC amortization (8)(4)(4)(4)— — — — 
Total income tax expense included in Consolidated Statements of Operations $192 $51 $227 $75 $187 $30 $107 $30 
(a)     Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $32 million at Duke Energy Carolinas, $8 million at Duke Energy Indiana, and $3 million at Piedmont. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $150 million at Duke Energy, $95 million at Progress Energy, $14 million at Duke Energy Progress, $64 million at Duke Energy Florida, and $2 million at Duke Energy Ohio.
 Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes        
Federal $(281)$314 $280 $181 $148 $10 $48 $(27)
State (9)35 29 17 24 1 7 (8)
Foreign 1 — — — — — — — 
Total current income taxes (289)349 309 198 172 11 55 (35)
Deferred income taxes       
Federal 155 (171)(167)(180)1 30 12 60 
State (92)(86)(24)(49)25 2 17 (7)
Total deferred income taxes(a)
63 (257)(191)(229)26 32 29 53 
ITC amortization (10)(4)(5)(5)— — — — 
Income tax (benefit) expense from continuing operations (236)88 113 (36)198 43 84 18 
Tax expense from discontinued operations 2 — — — — — — — 
Total income tax (benefit) expense included in Consolidated Statements of Operations $(234)$88 $113 $(36)$198 $43 $84 $18 
(a)    Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $20 million at Duke Energy Carolinas, $3 million at Duke Energy Progress, $8 million at Duke Energy Indiana, and $11 million at Piedmont. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $39 million at Progress Energy, $30 million at Duke Energy Florida and $79 million at Duke Energy.
 Year Ended December 31, 2019
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes        
Federal $(299)$164 $(173)$(36)$(43)$(41)$(23)$(92)
State 10 13 (7)(3)18 (1)1 (1)
Foreign 2 — — — — — — — 
Total current income taxes (287)177 (180)(39)(25)(42)(22)(93)
Deferred income taxes        
Federal 855 175 422 220 153 77 128 133 
State (38)(37)17 (18)27 5 28 3 
Total deferred income taxes(a)
817 138 439 202 180 82 156 136 
ITC amortization (11)(4)(6)(6)— — — — 
Income tax expense from continuing operations 519 311 253 157 155 40 134 43 
Tax benefit from discontinued operations (2)— — — — — — — 
Total income tax expense included in Consolidated Statements of Operations $517 $311 $253 $157 $155 $40 $134 $43 
(a)    Total deferred income taxes includes the generation of tax credit carryforwards of $8 million at Duke Energy Carolinas. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $243 million at Progress Energy, $35 million at Duke Energy Progress, $152 million at Duke Energy Florida, $25 million at Duke Energy Ohio, $60 million at Duke Energy Indiana, $90 million at Piedmont and $775 million at Duke Energy.
Duke Energy Income from Continuing Operations before Income Taxes
 Years Ended December 31,
(in millions)202120202019
Domestic$3,720 $826 $4,053 
Foreign44 13 44 
Income from continuing operations before income taxes$3,764 $839 $4,097 
Statutory Rate Reconciliation
The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.
 Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$790 $291 $384 $224 $194 $49 $123 $71 
State income tax, net of federal income tax effect1 (44)34 (14)47 2 18 (8)
Amortization of excess deferred income tax(438)(184)(174)(120)(54)(22)(34)(25)
AFUDC equity income(34)(14)(11)(7)(3)(2)(4)(4)
AFUDC equity depreciation35 18 10 5 5 2 5 — 
Noncontrolling Interests72 — — — — — — — 
Renewable energy PTCs(100)— — — — — — — 
Other tax credits(30)(12)(11)(8)(3)(1)(2)(4)
Valuation Allowance(a)
(85)— — — — — — — 
Other items, net(19)(4)(5)(5)1 2 1 — 
Income tax expense from continuing operations$192 $51 $227 $75 $187 $30 $107 $30 
Effective tax rate5.1 %3.7 %12.4 %7.0 %20.2 %12.8 %18.2 %8.8 %
(a)    In the fourth quarter of 2021, the company recognized a federal capital gain in the amount of $426 million. As a result, a valuation allowance of $85 million related to a federal capital loss carryforward was released. This valuation allowance was originally recorded as a result of the 2019 sale of minority interest of certain renewable assets within the Commercial Renewables segment.
 Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$176 $219 $243 $80 $204 $62 $103 $61 
State income tax, net of federal income tax effect(80)(40)4 (25)39 2 19 (12)
Amortization of excess deferred income tax(276)(82)(118)(68)(49)(20)(36)(21)
AFUDC equity income(48)(13)(9)(6)(3)(2)(4)(10)
AFUDC equity depreciation103 19 10 5 5 1 4 — 
Noncontrolling Interests62 — — — — — — — 
Renewable energy PTCs(110)— — — — — — — 
Other tax credits(37)(13)(16)(14)(2)(1)(3)(2)
Tax true up(12)(3)1 (5)5 — (1)1 
Other items, net(14)1 (2)(3)(1)1 2 1 
Income tax (benefit) expense from continuing operations$(236)$88 $113 $(36)$198 $43 $84 $18 
Effective tax rate(28.1)%8.4 %9.7 %(9.5)%20.4 %14.6 %17.1 %6.2 %
 Year Ended December 31, 2019
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$860 $360 $332 $202 $178 $59 $120 $51 
State income tax, net of federal income tax effect(22)(19)8 (17)35 3 22 2 
Amortization of excess deferred income tax(121)(29)(64)(10)(54)(12)(6)(10)
AFUDC equity income(52)(9)(14)(13)(1)(3)(3)— 
AFUDC equity depreciation34 19 10 5 5 1 4 — 
Renewable energy PTCs(120)— — — — — — — 
Other tax credits(23)(11)(9)(7)(2)(1)(1)(1)
Tax true up(64)(9)(8)(3)(5)(7)(1)— 
Other items, net27 9 (2)— (1)— (1)1 
Income tax expense from continuing operations$519 $311 $253 $157 $155 $40 $134 $43 
Effective tax rate12.7 %18.1 %16.0 %16.3 %18.3 %14.3 %23.5 %17.6 %
Valuation allowances have been established for certain state NOL carryforwards and state income tax credits that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in state income tax, net of federal income tax effect, in the above tables.
DEFERRED TAXES
Net Deferred Income Tax Liability Components
 December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Deferred credits and other liabilities $347 $121 $101 $60 $40 $19 $7 $18 
Lease obligations 346 91 197 121 76 4 16 4 
Pension, post-retirement and other employee benefits 207 (36)30 17 7 11 20 (8)
Progress Energy merger purchase accounting adjustments(a)
340 — — — — — — — 
Tax credits and NOL carryforwards 3,784 349 497 160 306 13 195 29 
Regulatory liabilities and deferred credits— 11 — — — 16 — 6 
Investments and other assets— — — — — 5 6 — 
Other 85 12 12 7 4 7 2 8 
Valuation allowance (518)— — — — — — — 
Total deferred income tax assets 4,591 548 837 365 433 75 246 57 
Investments and other assets (2,428)(1,205)(742)(610)(135)— — (39)
Accelerated depreciation rates (10,391)(2,977)(3,891)(1,546)(2,382)(1,125)(1,496)(833)
Regulatory assets and deferred debits, net (1,151)— (768)(417)(350)— (53)— 
Total deferred income tax liabilities (13,970)(4,182)(5,401)(2,573)(2,867)(1,125)(1,549)(872)
Net deferred income tax liabilities$(9,379)$(3,634)$(4,564)$(2,208)$(2,434)$(1,050)$(1,303)$(815)
(a)    Primarily related to lease obligations and debt fair value adjustments.
The following table presents the expiration of tax credits and NOL carryforwards.
 December 31, 2021
(in millions)AmountExpiration Year
General Business Credits$2,312 2024—2041
Federal NOL carryforwards(a)
4 2024—2026
State carryforwards and credits(b) (e)
328 2022—Indefinite
Foreign NOL carryforwards(c)
12 2027—2037
Foreign Tax Credits(d)
1,128 2024—2027
Total tax credits and NOL carryforwards $3,784    
(a)    A valuation allowance of $4 million has been recorded on the Federal NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(b)    A valuation allowance of $112 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(c)    A valuation allowance of $12 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(d)    A valuation allowance of $390 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.
(e)    Indefinite carryforward for Federal NOLs, and NOLs for states that have adopted the Tax Act's NOL provisions, generated in tax years beginning after December 31, 2017.
 December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Deferred credits and other liabilities $286 $85 $87 $67 $18 $21 $7 $38 
Lease obligations 515 96 208 120 87 5 16 5 
Pension, post-retirement and other employee benefits 236 (30)68 24 38 16 26 (5)
Progress Energy merger purchase accounting adjustments(a)
441 — — — — — — — 
Tax credits and NOL carryforwards 3,909 285 508 179 282 16 183 29 
Regulatory liabilities and deferred credits— 11 — — — 18 — — 
Investments and other assets— — — — — 7 — 
Other 93 8 14 9 4 7 1 8 
Valuation allowance (586)— — — — — — — 
Total deferred income tax assets 4,894 455 885 399 429 90 233 75 
Investments and other assets (2,267)(1,127)(669)(507)(164)— (14)(48)
Accelerated depreciation rates (10,729)(3,170)(3,868)(1,778)(2,124)(1,071)(1,433)(844)
Regulatory assets and deferred debits, net (1,142)— (744)(412)(332)— (14)(4)
Total deferred income tax liabilities (14,138)(4,297)(5,281)(2,697)(2,620)(1,071)(1,461)(896)
Net deferred income tax liabilities $(9,244)$(3,842)$(4,396)$(2,298)$(2,191)$(981)$(1,228)$(821)
(a)    Primarily related to lease obligations and debt fair value adjustments.
UNRECOGNIZED TAX BENEFITS
The following tables present changes to unrecognized tax benefits.
 Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$125 $10 $10 $6 $3 $1 $1 $1 
Gross decreases – tax positions in prior periods(a)
(86)— — — — — — — 
Gross increases – current period tax positions12 3 5 4 1 — 1 3 
Total changes(74)3 5 4 1 — 1 3 
Unrecognized tax benefits – December 31$51 $13 $15 $10 $4 $1 $2 $4 
(a)    In the fourth quarter of 2021, the company recognized a federal capital gain in the amount of $426 million. As a result of the capital gain, a previously recorded unrecognized tax benefit related to the character of a taxable loss has been reversed. See note (a) under the Statutory Rate Reconciliation table for more details.
 Year Ended December 31, 2020
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$126 $8 $9 $6 $3 $1 $1 $4 
Gross decreases – tax positions in prior periods(2)— — — — — — — 
Gross increases – current period tax positions4 2 1 — — — — — 
Reduction due to lapse of statute of limitations(3)— — — — — — (3)
Total changes(1)2 1 — — — — (3)
Unrecognized tax benefits – December 31$125 $10 $10 $6 $3 $1 $1 $1 
 Year Ended December 31, 2019
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$24 $6 $9 $6 $3 $1 $1 $4 
Unrecognized tax benefits increases105 2 1 1 — — — — 
Gross decreases – tax positions in prior periods(3)— (1)(1)— — — — 
Total changes102 2 — — — — — — 
Unrecognized tax benefits – December 31$126 $8 $9 $6 $3 $1 $1 $4 
The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2021. Duke Energy Registrants do not anticipate a material increase or decrease in unrecognized tax benefits within the next 12 months.
 December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Amount that if recognized, would affect the
effective tax rate or regulatory liability(a)
$47 $13 $14 $10 $4 $1 $2 $4 
(a)    The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.
Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2016, aside from certain state tax attributes carried forward for utilization in future years.