Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

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	2023			2022
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 effect1		(0.5)			5.5
Production tax credits		(4.2)			(4.7)
TCJA excess deferred taxes2		(3.7)			(7.2)
Accelerated flow-through of regulatory tax benefits3		—			(4.3)
Other, net		0.4			—
Effective tax rate		13.0	%		10.3	%
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 effect1		—			5.0
Production tax credits		(3.6)			(2.7)
TCJA excess deferred taxes2		(3.2)			(6.7)
Accelerated flow-through of regulatory tax benefits3		—			(5.1)
Other, net		(0.1)			(0.6)
Effective tax rate		14.1	%		10.9	%

1CMS Energy initiated a plan to divest immaterial business activities in the state of Wisconsin and will no longer have a taxable presence within the state after 2023. As a result of these actions, CMS Energy reversed a $13 million Wisconsin-related state reserve, all of which was recognized at Consumers.

2In 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 was fully amortized in 2022.

3In 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 were fully amortized in 2022.

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	2023			2022
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 effect1		(0.5)			5.5
Production tax credits		(4.2)			(4.7)
TCJA excess deferred taxes2		(3.7)			(7.2)
Accelerated flow-through of regulatory tax benefits3		—			(4.3)
Other, net		0.4			—
Effective tax rate		13.0	%		10.3	%
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 effect1		—			5.0
Production tax credits		(3.6)			(2.7)
TCJA excess deferred taxes2		(3.2)			(6.7)
Accelerated flow-through of regulatory tax benefits3		—			(5.1)
Other, net		(0.1)			(0.6)
Effective tax rate		14.1	%		10.9	%

1CMS Energy initiated a plan to divest immaterial business activities in the state of Wisconsin and will no longer have a taxable presence within the state after 2023. As a result of these actions, CMS Energy reversed a $13 million Wisconsin-related state reserve, all of which was recognized at Consumers.

2In 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 was fully amortized in 2022.

3In 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 were fully amortized in 2022.