INCOME TAXES

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:

	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	62.2	21.0	%	$	52.7	21.0	%
State income taxes net of federal tax benefit	18.4		6.2	%	15.6		6.2	%
Federal excess deferred tax amortization – Wisconsin unprotected	(11.1)		(3.8)	%	—		—	%
Wind production tax credits	(9.4)		(3.2)	%	(6.2)		(2.5)	%
Federal excess deferred tax amortization	(8.9)		(3.0)	%	(7.5)		(3.0)	%
Excess tax benefits – stock options	(1.4)		(0.5)	%	(4.4)		(1.7)	%
Tax repairs	—		—	%	(30.4)		(12.1)	%
Other	4.0		1.5	%	(4.6)		(1.8)	%
Total income tax expense	$	53.8	18.2	%	$	15.2	6.1	%

	Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	176.1	21.0	%	$	154.6	21.0	%
State income taxes net of federal tax benefit	52.4		6.3	%	46.5		6.3	%
Federal excess deferred tax amortization – Wisconsin unprotected	(33.2)		(4.0)	%	—		—	%
Wind production tax credits	(27.8)		(3.3)	%	(19.6)		(2.7)	%
Federal excess deferred tax amortization	(21.9)		(2.6)	%	(20.7)		(2.8)	%
Excess tax benefits – stock options	(6.3)		(0.8)	%	(11.6)		(1.6)	%
Tax repairs	1.5		0.2	%	(60.0)		(8.1)	%
Other	3.0		0.3	%	(9.0)		(1.2)	%
Total income tax expense	$	143.8	17.1	%	$	80.2	10.9	%

The effective tax rates of 18.2% and 17.1% for the three and six months ended June 30, 2020, respectively, differ from the United States statutory federal income tax rate of 21%, primarily due to the recognition of certain unprotected deferred tax benefits created as a result of the Tax Legislation. In accordance with the rate order received from the PSCW in December 2019, our Wisconsin utilities are amortizing the unprotected deferred tax benefits over periods ranging from two years to four years, to reduce near-term rate impacts to their customers. In addition, wind production tax credits generated from acquisitions of ownership interests in wind generation facilities in our non-utility energy infrastructure segment and the impact of the protected benefits associated with the Tax Legislation, as discussed in more detail below, drove a decrease in the effective tax rate, which was partially offset by state income taxes.

The effective tax rates of 6.1% and 10.9% for the three and six months ended June 30, 2019, respectively, differ from the United States statutory federal income tax rate of 21%, primarily due to the flow through of tax repairs in connection with the 2017 Wisconsin rate settlement, the impact of the protected benefits associated with the Tax Legislation, as discussed in more detail below, and wind production tax credits generated from acquisitions of ownership interests in wind generation facilities in our non-utility energy infrastructure segment, partially offset by state income taxes.

The Tax Legislation, signed into law in December 2017, required our regulated utilities to remeasure their deferred income taxes and we began to amortize the resulting excess protected deferred income taxes beginning in 2018 in accordance with normalization requirements (see federal excess deferred tax amortization line above).

See Note 23, Regulatory Environment, for more information.