Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):


	2021		2020		2019
Current:
Federal	$	(1,701)	$	(1,537)	$	(956)
State	(177)		(121)		(13)
Foreign	100		86		81
	(1,778)		(1,572)		(888)
Deferred:
Federal	1,037		1,438		431
State	(476)		424		(127)
Foreign	89		21		(8)
	650		1,883		296

Investment tax credits	(4)		(3)		(6)
Total	$	(1,132)	$	308	$	(598)

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax (benefit) expense is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(27)		(16)		(32)
Effects of ratemaking	(4)		(3)		(6)
State income tax, net of federal income tax benefit	(10)		3		(5)
Non-controlling interest	(2)		—		—
Income tax effect of foreign income	1		—		(2)

Other, net	—		(1)		(1)
Effective income tax rate	(21)	%	4	%	(25)	%

Summary of Operating Loss Carryforwards

The net deferred income tax liability consists of the following as of December 31 (in millions):


	2021		2020
Deferred income tax assets:
Regulatory liabilities	$	1,349	$	1,420
Federal, state and foreign carryforwards	820		677
AROs	304		304


Other	686		777
Total deferred income tax assets	3,159		3,178
Valuation allowances	(164)		(204)
Total deferred income tax assets, net	2,995		2,974

Deferred income tax liabilities:
Property-related items	(11,814)		(10,816)
Investments	(2,877)		(2,821)
Regulatory assets	(764)		(785)
Other	(478)		(327)
Total deferred income tax liabilities	(15,933)		(14,749)
Net deferred income tax liability	$	(12,938)	$	(11,775)

The following table provides the Company's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2021 (in millions):


	Federal		State		Foreign		Total
Net operating loss carryforwards(1)	$	297	$	9,013	$	900	$	10,210
Deferred income taxes on net operating loss carryforwards	63		506		207		776
Expiration dates	2022 - indefinite		2022 - indefinite		2028 - 2041

Tax credits	$	15	$	29	$	—	$	44
Expiration dates	2023 - 2034		2022 - indefinite

(1)The federal net operating loss carryforwards relate principally to net operating loss carryforwards of subsidiaries that are tax residents in both the United States and the United Kingdom. The federal net operating loss carryforwards were generated prior to Berkshire Hathaway Inc.'s ownership and will begin to expire in 2022.

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

A reconciliation of the beginning and ending balances of the Company's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):


	2021		2020

Beginning balance	$	153	$	145
Additions based on tax positions related to the current year	24		19
Additions for tax positions of prior years	13		6
Reductions based on tax positions related to the current year	(19)		(14)
Reductions for tax positions of prior years	(83)		(1)
Statute of limitations	—		(4)
Settlements	(1)		1
Interest and penalties	10		1
Ending balance	$	97	$	153

PAC

Income tax (benefit) expense consists of the following for the years ended December 31 (in millions):


	2021		2020		2019

Current:
Federal	$	(150)	$	19	$	158
State	7		30		34
Total	(143)		49		192

Deferred:
Federal	26		(124)		(132)
State	40		1		4
Total	66		(123)		(128)

Investment tax credits	(2)		(1)		(3)
Total income tax (benefit) expense	$	(79)	$	(75)	$	61

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%
State income taxes, net of federal income tax benefit	3		3		3
Effects of ratemaking	(14)		(22)		(13)
Federal income tax credits	(20)		(13)		(3)
Other	—		—		(1)
Effective income tax rate	(10)	%	(11)	%	7	%

Summary of Operating Loss Carryforwards

The net deferred income tax liability consists of the following as of December 31 (in millions):


	2021		2020

Deferred income tax assets:
Regulatory liabilities	$	682	$	700
Employee benefits	68		93

State carryforwards	73		73
Loss contingencies	63		63
Asset retirement obligations	73		65
Other	73		83
	1,032		1,077
Deferred income tax liabilities:
Property, plant and equipment	(3,468)		(3,311)
Regulatory assets	(332)		(343)
Other	(79)		(50)
	(3,879)		(3,704)
Net deferred income tax liability	$	(2,847)	$	(2,627)

The following table provides PacifiCorp's net operating loss and tax credit carryforwards and expiration dates as of December 31, 2021 (in millions):


	State

Net operating loss carryforwards	$	1,138
Deferred income taxes on net operating loss carryforwards	$	53
Expiration dates	2023 - 2032

Tax credit carryforwards	$	20
Expiration dates	2022 - indefinite

MEC

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

MidAmerican Energy's income tax benefit consists of the following for the years ended December 31 (in millions):


	2021		2020		2019
Current:
Federal	$	(736)	$	(684)	$	(478)
State	(92)		(94)		(47)
	(828)		(778)		(525)
Deferred:
Federal	189		201		166
State	(35)		8		(11)
	154		209		155

Investment tax credits	(1)		(1)		(1)
Total	$	(675)	$	(570)	$	(371)

A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax benefit is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(262)		(199)		(90)
State income tax, net of federal income tax benefit	(46)		(27)		(11)
Effects of ratemaking	(20)		(17)		(8)
Other, net	(1)		(1)		—
Effective income tax rate	(308)	%	(223)	%	(88)	%

MidAmerican Energy's net deferred income tax liability consists of the following as of December 31 (in millions):


	2021		2020
Deferred income tax assets:
Regulatory liabilities	$	240	$	288

Asset retirement obligations	220		229
State carryforwards	55		52
Employee benefits	26		42
Other	30		40
Total deferred income tax assets	571		651
Valuation allowances	(1)		(25)
Total deferred income tax assets, net	570		626

Deferred income tax liabilities:
Depreciable property	(3,843)		(3,583)
Regulatory assets	(112)		(97)
Other	(4)		—
Total deferred income tax liabilities	(3,959)		(3,680)

Net deferred income tax liability	$	(3,389)	$	(3,054)

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

A reconciliation of the beginning and ending balances of MidAmerican Energy's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):


	2021		2020

Beginning balance	$	8	$	8
Additions based on tax positions related to the current year	16		4

Reductions based on tax positions related to the current year	(11)		(3)
Reductions for tax positions of prior years	—		(1)



Ending balance	$	13	$	8

MidAmerican Funding, LLC

MidAmerican Funding's income tax benefit consists of the following for the years ended December 31 (in millions):


	2021		2020		2019
Current:
Federal	$	(739)	$	(689)	$	(480)
State	(94)		(96)		(49)
	(833)		(785)		(529)
Deferred:
Federal	189		204		164
State	(35)		8		(11)
	154		212		153

Investment tax credits	(1)		(1)		(1)
Total	$	(680)	$	(574)	$	(377)

A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax benefit is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%
Income tax credits	(283)		(209)		(94)
State income tax, net of federal income tax benefit	(50)		(29)		(12)
Effects of ratemaking	(21)		(17)		(8)
Other, net	(2)		(1)		—
Effective income tax rate	(335)	%	(235)	%	(93)	%

MidAmerican Funding's net deferred income tax liability consists of the following as of December 31 (in millions):


	2021		2020
Deferred income tax assets:
Regulatory liabilities	$	240	$	288
Asset retirement obligations	220		229
State carryforwards	55		52
Employee benefits	26		43

Other	30		40
Total deferred income tax assets	571		652
Valuation allowances	(1)		(25)
Total deferred income tax assets, net	570		627

Deferred income tax liabilities:
Depreciable property	(3,843)		(3,583)
Regulatory assets	(112)		(97)
Other	(2)		1
Total deferred income tax liabilities	(3,957)		(3,679)

Net deferred income tax liability	$	(3,387)	$	(3,052)

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

A reconciliation of the beginning and ending balances of MidAmerican Funding's net unrecognized tax benefits is as follows for the years ended December 31 (in millions):


	2021		2020

Beginning balance	$	8	$	8
Additions based on tax positions related to the current year	16		4

Reductions based on tax positions related to the current year	(11)		(3)
Reductions for tax positions of prior years	—		(1)



Ending balance	$	13	$	8

NPC

Income tax expense consists of the following for the years ended December 31 (in millions):


	2021		2020		2019

Current – Federal	$	37	$	57	$	105

Deferred – Federal	—		(10)		(31)




Investment tax credits	—		—		(1)
Total income tax expense	$	37	$	47	$	73

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(11)		(8)		—


Other	1		1		1
Effective income tax rate	11	%	14	%	22	%

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

The net deferred income tax liability consists of the following as of December 31 (in millions):


	2021		2020
Deferred income tax assets:
Regulatory liabilities	$	195	$	206
Operating and finance leases	73		79
Customer advances	25		19
Unamortized contract value	25		8
Other	8		15
Total deferred income tax assets	326		327



Deferred income tax liabilities:
Property related items	(800)		(800)
Regulatory assets	(204)		(176)
Operating and finance leases	(70)		(76)
Other	(34)		(13)
Total deferred income tax liabilities	(1,108)		(1,065)
Net deferred income tax liability	$	(782)	$	(738)

SPPC

Income tax expense consists of the following for the years ended December 31 (in millions):


	2021		2020		2019

Current – Federal	$	5	$	3	$	19

Deferred – Federal	13		12		10




Investment tax credits	—		—		(1)
Total income tax expense	$	18	$	15	$	28

A reconciliation of the federal statutory income rate to the effective income tax rate applicable to income before income tax expense is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%
Effects of ratemaking	(8)		(9)		—



Effective income tax rate	13	%	12	%	21	%

Schedule of Effective Income Tax Rate Reconciliation [Line Items]

The net deferred income tax liability consists of the following as of December 31 (in millions):


	2021		2020
Deferred income tax assets:
Regulatory liabilities	$	64	$	67


Operating and finance leases	27		30
Customer advances	14		10
Unamortized contract value	8		2
Other	6		8
Total deferred income tax assets	119		117

Deferred income tax liabilities:
Property related items	(379)		(380)
Regulatory assets	(94)		(74)
Operating and finance leases	(27)		(30)
Other	(21)		(7)
Total deferred income tax liabilities	(521)		(491)
Net deferred income tax liability	$	(402)	$	(374)

EEGH

Income tax expense (benefit) consists of the following for the years ended December 31 (in millions):


	2021		2020		2019
Current:
Federal	$	(47)	$	(20)	$	130
State	(21)		1		17
	(68)		(19)		147
Deferred:
Federal	129		23		(36)
State	56		(28)		(10)
	185		(5)		(46)

Total	$	117	$	(24)	$	101

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows for the years ended December 31:


	2021		2020		2019

Federal statutory income tax rate	21	%	21	%	21	%

State income tax, net of federal income tax benefit	3		(13)		1



Equity interest	1		4		1
Effects of ratemaking	1		(2)		(1)


Change in tax status	—		(9)		(4)

AFUDC-equity	—		(1)		(1)
Noncontrolling interest	(11)		(16)		(3)
Write-off of regulatory assets	—		3		—
Other, net	1		1		(1)
Effective income tax rate	16	%	(12)	%	13	%

The net deferred income tax (liability) asset consists of the following as of December 31 (in millions):


	2021		2020
Deferred income tax assets:
Federal and state carryforwards	$	7	$	—


Employee benefits	33		30
Intangibles	150		148
Derivatives and hedges	16		18


Other	9		4
Total deferred income tax assets	215		200



Deferred income tax liabilities:
Property related items	(129)		(52)

Partnership investments	(49)		(19)
Debt exchange	(60)		—

Deferred state income taxes	(16)		—
Debt issuance discount	(7)		(8)

Other	(9)		(2)
Total deferred income tax liabilities	(270)		(81)
Net deferred income tax (liability) asset (1)	$	(55)	$	119

(1)Net deferred income tax liability as of December 31, 2021 is presented in other assets and other long-term liabilities in the Consolidated Balance Sheet. Net deferred income tax asset as of December 31, 2020 is presented in other assets in the Consolidated Balance Sheet.