18. TAXES

Components of income tax expense are detailed in the following tables.



	Three Months Ended September 30						Year to Date September 30
Great Plains Energy	2017			2016			2017			2016
Current income taxes	(millions)
Federal	$	(1.1	)	$	—		$	(1.1	)	$	(0.1	)
State	(0.3		)	—			(0.3		)	0.3
Total	(1.4		)	—			(1.4		)	0.2
Deferred income taxes
Federal	86.6			70.1			74.7			91.5
State	17.5			13.0			15.0			18.4
Total	104.1			83.1			89.7			109.9
Investment tax credit
Deferral	—			—			—			2.5
Amortization	(0.4		)	(0.4		)	(1.1		)	(1.1		)
Total	(0.4		)	(0.4		)	(1.1		)	1.4
Income tax expense	$	102.3		$	82.7		$	87.2		$	111.5



	Three Months Ended September 30						Year to Date September 30
KCP&L	2017			2016			2017			2016
Current income taxes	(millions)
Federal	$	41.8		$	35.4		$	56.2		$	36.6
State	7.6			6.4			10.2			6.7
Total	49.4			41.8			66.4			43.3
Deferred income taxes
Federal	10.3			22.5			27.2			61.5
State	2.8			4.5			6.2			12.5
Total	13.1			27.0			33.4			74.0
Investment tax credit amortization	(0.3		)	(0.3		)	(0.8		)	(0.8		)
Income tax expense	$	62.2		$	68.5		$	99.0		$	116.5

Effective Income Tax Rates

Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.



	Three Months Ended September 30				Year to Date September 30
Great Plains Energy	2017		2016		2017		2016
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%	35.0	%
Differences between book and tax depreciation not normalized	(0.6	)	(0.3	)	(0.9	)	(0.2	)
Amortization of investment tax credits	(1.5	)	(0.2	)	(1.9	)	(0.4	)
Federal income tax credits	(7.8	)	(1.1	)	(10.0	)	(2.7	)
State income taxes	9.8		3.9		11.5		4.0
Transaction-related costs	54.1		1.0		70.8		1.0
Valuation allowance	1.7		—		2.4		—
Other	(0.1	)	(0.1	)	0.5		—
Effective income tax rate	90.6	%	38.2	%	107.4	%	36.7	%



	Three Months Ended September 30				Year to Date September 30
KCP&L	2017		2016		2017		2016
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%	35.0	%
Differences between book and tax depreciation not normalized	(0.6	)	(0.5	)	(0.5	)	(0.3	)
Amortization of investment tax credits	(0.4	)	(0.1	)	(0.4	)	(0.2	)
Federal income tax credits	(3.1	)	(1.2	)	(2.6	)	(2.3	)
State income taxes	3.8		3.8		3.8		3.8
Valuation allowance	0.7		—		0.4		—
Other	(0.1	)	(0.2	)	0.1		(0.1	)
Effective income tax rate	35.3	%	36.8	%	35.8	%	35.9	%

The increase in Great Plains Energy's effective income tax rate for the three months ended and year to date September 30, 2017, compared to the same periods in 2016, is primarily driven by significant transaction-related costs incurred in connection with the anticipated merger with Westar and the previous plan to acquire Westar that are not deductible for tax purposes.