Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Line Items]

Income Taxes

Income Taxes

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:

Six Months Ended June 30	2022			2021
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		5.5			5.4
TCJA excess deferred taxes1		(7.2)			(5.9)
Production tax credits		(5.1)			(5.1)
Accelerated flow-through of regulatory tax benefits2		(4.3)			(3.3)
Other, net		—			0.1
Effective tax rate		9.9	%		12.2	%
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		5.2			5.2
TCJA excess deferred taxes1		(6.0)			(4.9)
Production tax credits		(3.8)			(3.2)
Accelerated flow-through of regulatory tax benefits2		(3.6)			(3.0)
Other, net		(0.4)			(0.5)
Effective tax rate		12.4	%		14.6	%

1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas 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 by the end of 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 by the end of 2022.

Consumers Energy Company

Income Taxes [Line Items]

Income Taxes

Income Taxes

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:

Six Months Ended June 30	2022			2021
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		5.5			5.4
TCJA excess deferred taxes1		(7.2)			(5.9)
Production tax credits		(5.1)			(5.1)
Accelerated flow-through of regulatory tax benefits2		(4.3)			(3.3)
Other, net		—			0.1
Effective tax rate		9.9	%		12.2	%
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		5.2			5.2
TCJA excess deferred taxes1		(6.0)			(4.9)
Production tax credits		(3.8)			(3.2)
Accelerated flow-through of regulatory tax benefits2		(3.6)			(3.0)
Other, net		(0.4)			(0.5)
Effective tax rate		12.4	%		14.6	%

1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas 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 by the end of 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 by the end of 2022.