Income Taxes (Tables)

3 Months Ended

Mar. 31, 2021

Income Taxes [Line Items]

Schedule Of Effective Income Tax Rate Reconciliation

Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:

Three Months Ended March 31	2021			2020
CMS Energy, including Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		5.1			4.6
TCJA excess deferred taxes1		(5.3)			(3.9)
Production tax credits		(4.7)			(2.8)
Accelerated flow-through of regulatory tax benefits2		(3.0)			(1.5)
Research and development tax credits, net3		(0.3)			(3.4)
Refund of alternative minimum tax sequestration4		—			(3.3)
Other, net		0.2			(0.7)
Effective tax rate		13.0	%		10.0	%
Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		5.1			4.9
TCJA excess deferred taxes1		(5.1)			(3.4)
Accelerated flow-through of regulatory tax benefits2		(3.7)			(1.9)
Production tax credits		(2.6)			(1.4)
Research and development tax credits, net3		(0.2)			(3.1)
Other, net		(0.2)			(0.3)
Effective tax rate		14.3	%		15.8	%

1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized in 2022.

2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized in 2022.

3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.

4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.

Consumers Energy Company

Income Taxes [Line Items]

Schedule Of Effective Income Tax Rate Reconciliation

Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:

Three Months Ended March 31	2021			2020
CMS Energy, including Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		5.1			4.6
TCJA excess deferred taxes1		(5.3)			(3.9)
Production tax credits		(4.7)			(2.8)
Accelerated flow-through of regulatory tax benefits2		(3.0)			(1.5)
Research and development tax credits, net3		(0.3)			(3.4)
Refund of alternative minimum tax sequestration4		—			(3.3)
Other, net		0.2			(0.7)
Effective tax rate		13.0	%		10.0	%
Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		5.1			4.9
TCJA excess deferred taxes1		(5.1)			(3.4)
Accelerated flow-through of regulatory tax benefits2		(3.7)			(1.9)
Production tax credits		(2.6)			(1.4)
Research and development tax credits, net3		(0.2)			(3.1)
Other, net		(0.2)			(0.3)
Effective tax rate		14.3	%		15.8	%

1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized in 2022.

2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized in 2022.

3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.

4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.