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Income Taxes
9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
5.  Income Taxes

NEE's effective income tax rates for the three months ended September 30, 2012 and 2011 were approximately 27% and 28%, respectively.  The reduction from the federal statutory rate for those respective periods mainly reflects the benefit of wind production tax credits (PTCs) of approximately $35 million and $45 million related to NEER's wind projects and approximately $14 million and $9 million of deferred income tax benefits associated with grants (convertible investment tax credits (ITCs)) under the American Recovery and Reinvestment Act of 2009, as amended (Recovery Act), primarily for certain wind projects expected to be placed in service.

NEE's effective income tax rates for the nine months ended September 30, 2012 and 2011 were approximately 27% and 18%, respectively.  The reduction from the federal statutory rate for those respective periods mainly reflects the benefit of wind PTCs of approximately $147 million and $208 million and approximately $37 million and $17 million of deferred income tax benefits associated with convertible ITCs. NEE's effective income tax rate for the nine months ended September 30, 2011 also reflects a state deferred income tax benefit included in the Corporate and Other segment of approximately $64 million, net of federal income taxes, related to state tax law changes in 2011 (state deferred income tax benefit) and a $26 million reduction in income tax expense, net of federal income taxes, primarily related to a valuation allowance reversal for certain state ITCs reflecting state income tax planning initiatives (state ITC benefit).

NEE recognizes PTCs as wind energy is generated and sold based on a per kilowatt-hour (kwh) rate prescribed in applicable federal and state statutes, which may differ significantly from amounts computed, on a quarterly basis, using an overall effective income tax rate anticipated for the full year.  NEE uses this method of recognizing PTCs for specific reasons, including that PTCs are an integral part of the financial viability of most wind projects and a fundamental component of such wind projects' results of operations.  PTCs, as well as deferred income tax benefits associated with convertible ITCs, can significantly affect NEE's effective income tax rate depending on the amount of pretax income. The amount of PTCs recognized can be significantly affected by wind generation and by the expiration of PTCs after ten years of production.