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Income Taxes
 3 Months Ended
Mar. 31, 2024
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
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:
Three-Month Periods
Ended March 31,
 20242023
 
Federal statutory income tax rate21 %21 %
Income tax credits(108)(35)
State income tax, net of federal income tax impacts— (4)
Income tax effect of foreign income(6)7 
Effects of ratemaking(7)(3)
Equity earnings
(2)(1)
Noncontrolling interest(2)(2)
Effective income tax rate(104)%(17)%

Income tax credits relate primarily to production tax credits ("PTCs") from wind- and solar-powered generating facilities owned by MidAmerican Energy, PacifiCorp and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the three-month periods ended March 31, 2024 and 2023 totaled $383 million and $343 million, respectively.

Income tax effect on foreign income includes, among other items, a deferred income tax charge of $82 million recognized in March 2023 related to the July 2022 enactment of a new Energy Profits Levy 25% income tax in the United Kingdom effective May 26, 2022, through December 31, 2025, as well as an increase in the tax rate from 25% to 35% effective January 1, 2023, through March 31, 2028, enacted in January 2023.

The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated U.S. federal and Iowa state income tax returns and the majority of the Company's U.S. federal income tax is remitted to or received from Berkshire Hathaway. The Company had no net cash payments for federal income taxes to Berkshire Hathaway for the three-month periods ended March 31, 2024 and 2023.
PAC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows:
Three-Month Periods
Ended March 31,
20242023
Federal statutory income tax rate21 %21 %
State income tax, net of federal income tax impacts
3 4 
Income tax credits
(22)13 
Effects of ratemaking(1)
(11)6 
Valuation allowance— 5 
Other1 (1)
Effective income tax rate(8)%48 %
(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

The effective income tax rate for the three-month period ended March 31, 2023 of 48% resulted from a $110 million income tax benefit associated with a $230 million pre-tax loss, primarily related to a $359 million increase in wildfire loss accruals, net of expected insurance recoveries as described in Note 10. The $110 million income tax benefit is primarily comprised of a $48 million benefit, or 21%, from the application of the federal statutory income tax rate to the pre-tax loss and a $29 million benefit, or 13%, from federal income tax credits.

Income tax credits relate primarily to production tax credits ("PTC") from PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the three-month periods ended March 31, 2024 and 2023, totaled $25 million and $29 million, respectively.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, PacifiCorp's provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For the three-month period ended March 31, 2024, PacifiCorp received net cash payments for federal and state income tax from BHE totaling $189 million. As of March 31, 2024, net income taxes payable to BHE were $79 million. As of December 31, 2023, net income taxes receivable from BHE were $114 million.
MEC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month Periods
Ended March 31,
20242023
Federal statutory income tax rate21 %21 %
Income tax credits(1,158)(518)
State income tax, net of federal income tax impacts(11)(18)
Effects of ratemaking— (8)
Other, net(5)2 
Effective income tax rate(1,153)%(521)%
Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Energy recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of the remaining income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the three-month periods ended March 31, 2024 and 2023, totaled $220 million and $202 million, respectively.

Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal and Iowa state income tax returns. Consistent with established regulatory practice, MidAmerican Energy's provision for income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. MidAmerican Energy received net cash payments for income tax from BHE totaling $179 million and made net cash payments for income tax to BHE totaling $1 million for the three-month periods ended March 31, 2024 and 2023, respectively.
MidAmerican Funding, LLC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income before income tax expense (benefit) is as follows:
Three-Month Periods
Ended March 31,
20242023
Federal statutory income tax rate21 %21 %
Income tax credits(1,467)(430)
State income tax, net of federal income tax impacts(20)(13)
Effects of ratemaking— (6)
Other, net(1)(2)
Effective income tax rate(1,467)%(430)%

Income tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Funding recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of the remaining income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. PTCs recognized for the three-month periods ended March 31, 2024 and 2023, totaled $220 million and $202 million, respectively.

Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal and Iowa state income tax returns. Consistent with established regulatory practice, MidAmerican Funding's and MidAmerican Energy's provisions for income tax have been computed on a stand-alone basis, and substantially all of their currently payable or receivable income tax is remitted to or received from BHE. MidAmerican Funding received net cash payments for income tax from BHE totaling $180 million and $— million for the three-month periods ended March 31, 2024 and 2023, respectively.
NPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
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:
Three-Month Periods
Ended March 31,
 20242023
 
Federal statutory income tax rate21 %21 %
Effects of ratemaking(1)(9)
Income tax credits(8)(2)
Other5 10 
Effective income tax rate17 %20 %

Effects of ratemaking is primarily attributable to the recognition of excess deferred income taxes related to 2017 tax reform pursuant to an order issued by the PUCN effective January 1, 2021.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Nevada Power's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. Nevada Power made cash payments for federal income tax to BHE of $33 million and $— million for the three-month periods ended March 31, 2024 and 2023, respectively.
SPPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
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:
Three-Month Periods
Ended March 31,
20242023
Federal statutory income tax rate21 %21 %
Effects of ratemaking(13)(9)
Other1 1 
Effective income tax rate9 %13 %

Effects of ratemaking is primarily attributable to the recognition of excess deferred income taxes related to 2017 tax reform pursuant to an order issued by the PUCN effective January 1, 2020.

Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Sierra Pacific's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. Sierra Pacific made cash payments to BHE for federal income tax of $22 million and $— million for the three-month period ended March 31, 2024 and 2023, respectively.
EEGH  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
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:
Three-Month Periods
Ended March 31,
20242023
Federal statutory income tax rate21 %21 %
State income tax, net of federal income tax impacts
4 2 
Equity earnings
4 3 
Noncontrolling interest(3)(10)
Effective income tax rate26 %16 %

Berkshire Hathaway Inc. includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Eastern Energy Gas' provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For current federal and state income taxes, Eastern Energy Gas had a payable to BHE of $80 million as of March 31, 2024 and a receivable from BHE of $67 million as of December 31, 2023. The change is primarily due to the settlement of the income tax receivable balance through non-cash distributions in 2024.
EGTS  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
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:
Three-Month Periods
Ended March 31,
20242023
Federal statutory income tax rate21 %21 %
State income tax, net of federal income tax impacts5 4 
Effective income tax rate26 %25 %

Berkshire Hathaway Inc. includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, EGTS' provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE. For current federal and state income taxes, EGTS had a payable to BHE of $20 million as of March 31, 2024 and a receivable from BHE of $57 million as of December 31, 2023. The change is primarily due to the settlement of the income tax receivable balance through non-cash distributions in 2024.