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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Inflation Reduction Act
On August 16, 2022, the IRA was signed into law. Among other provisions, the IRA implemented a new 15% corporate alternative minimum tax based on GAAP net income, with certain adjustments as defined by the IRA, and clean energy-related provisions. The IRA's clean energy provisions included, among other provisions, the extension and modification of existing investment and PTCs for projects placed in service through 2024 and introduced new technology-neutral clean energy related credits beginning in 2025. In addition, the IRA created a new, zero-emission nuclear power PTC and a clean hydrogen PTC.
There were no material impacts on the results of operations, financial position, or cash flows in the periods presented for the Duke Energy Registrants as a result of the IRA being signed into law. Based on the review of the IRA provisions, future annual cash flow impacts related to the energy credits could be material to the Duke Energy Registrants. However, the majority of Duke Energy's operations are regulated and the FERC and state utility commissions will determine the regulatory treatment. We anticipate the Subsidiary Registrants will defer and expect to pass along the net financial impact associated with the IRA to customers over time. See Note 4 for further details on the IRA as it relates to Duke Energy Florida. Duke Energy will continue to assess the IRA as new information and anticipated guidance from the U.S. Department of the Treasury becomes available.
North Carolina's 2021 Appropriations Act
On November 18, 2021, North Carolina Senate Bill 105 (SB 105) was signed into law. Starting with tax year 2025, SB 105 begins phasing out the North Carolina corporate income tax rate over five years, from a statutory rate of 2.5% to zero. Duke Energy recorded a net reduction of approximately $490 million to its North Carolina deferred tax liability in the fourth quarter of 2021. The majority of this deferred tax liability reduction was offset by recording a regulatory liability pending NCUC determination of the disposition of the amounts related to Duke Energy Carolinas, Duke Energy Progress and Piedmont. In addition, Duke Energy recorded a net reduction of North Carolina consolidating deferred tax assets of approximately $25 million to deferred state income tax expense in the fourth quarter of 2021. North Carolina SB 105 did not have a significant impact on the financial position, results of operation, or cash flows of Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress or Piedmont.
Income Tax Expense
Components of Income Tax Expense
Tax benefit from discontinued operations, in the following tables, includes income tax benefits related to the Commercial Renewables Disposal Groups. See Note 2 for further details.
 Year Ended December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes
Federal(b)
$71 $173 $459 $198 $279 $(46)$10 $44 
State 1 22 38 4 71 (3)9 3 
Foreign 3 — — — — — — — 
Total current income taxes 75 195 497 202 350 (49)19 47 
Deferred income taxes       
Federal 319 (43)(154)(69)(89)111 77 25 
State 53 (7)38 19 — 1 14 12 
Total deferred income taxes(a)
372 (50)(116)(50)(89)112 91 37 
ITC amortization (9)(4)(4)(3)— — — — 
Income tax expense from continuing operations 438 141 377 149 261 63 110 84 
Tax benefit from discontinued operations (359)— — — — — — — 
Total income tax expense included in Consolidated Statements of Operations
$79 $141 $377 $149 $261 $63 $110 $84 
(a)     Total deferred income taxes includes the utilization of NOL carryforwards and tax credit carryforwards of $214 million at Duke Energy and $54 million at Duke Energy Indiana. In addition, total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $2 million at Duke Energy Carolinas, $116 million at Progress Energy, $59 million at Duke Energy Progress, $5 million at Duke Energy Florida, $22 million at Duke Energy Ohio, and $15 million at Piedmont.
(b)    Total current federal income tax at Duke Energy includes corporate alternative minimum tax, net of tax credit utilization, of $69 million. In addition, under the IRA transferability provision, Progress Energy elected to sell $28 million of PTCs generated by Duke Energy Florida. Cash received and paid related to the transfer of tax credits is included in Cash paid for (received from) income taxes on the Consolidated Statements of Cash Flows.
 Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions) EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes        
Federal $1 $(71)$(13)$37 $(37)$(2)$38 $32 
State (8)(13)(3)— (23)1 2 2 
Foreign 4 — — — — — — — 
Total current income taxes (3)(84)(16)37 (60)(1)40 34 
Deferred income taxes       
Federal 328 230 310 118 201 (22)(63)12 
State (14)(16)59 7 84 3 — (7)
Total deferred income taxes(a)
314 214 369 125 285 (19)(63)5 
ITC amortization (11)(4)(5)(4)— (1)(1)— 
Income tax expense from continuing operations 300 126 348 158 225 (21)(24)39 
Tax benefit from discontinued operations (503)— — — — — — — 
Total income tax (benefit) expense included in Consolidated Statements of Operations
$(203)$126 $348 $158 $225 $(21)$(24)$39 
(a)    Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $550 million at Duke Energy, $97 million at Duke Energy Carolinas, $128 million at Progress Energy, $9 million at Duke Energy Progress, $111 million at Duke Energy Florida, $7 million at Duke Energy Ohio, $13 million at Duke Energy Indiana, and $12 million at Piedmont.
 Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Current income taxes        
Federal $(2)$241 $(15)$113 $(75)$(8)$65 $23 
State 1 23 (4)8 (17)(2)7 3 
Foreign 2 — — — — — — — 
Total current income taxes 1 264 (19)121 (92)(10)72 26 
Deferred income taxes        
Federal 275 (130)203 (16)202 35 19 17 
State — (79)47 (26)77 5 16 (13)
Total deferred income taxes(a)
275 (209)250 (42)279 40 35 4 
ITC amortization (8)(4)(4)(4)— — — — 
Income tax expense from continuing operations
268 51 227 75 187 30 107 30 
Tax benefit from discontinued operations (76)— — — — — — — 
Total income tax expense included in Consolidated Statements of Operations
$192 $51 $227 $75 $187 $30 $107 $30 
(a)    Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $32 million at Duke Energy Carolinas, $8 million at Duke Energy Indiana, and $3 million at Piedmont. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $250 million at Duke Energy, $95 million at Progress Energy, $14 million at Duke Energy Progress, $64 million at Duke Energy Florida and $2 million at Duke Energy Ohio.    
Duke Energy Income from Continuing Operations before Income Taxes
 Years Ended December 31,
(in millions)202320222021
Domestic$4,700 $3,991 $3,947 
Foreign67 87 44 
Income from continuing operations before income taxes$4,767 $4,078 $3,991 
Statutory Rate Reconciliation
The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.
 Year Ended December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$1,001$338$490$241$268$83$128$97
State income tax, net of federal income tax effect4312 601856(2)1812
Amortization of EDIT
(388)(197)(114)(91)(23)(22)(33)(20)
AFUDC equity income(41)(19)(14)(11)(3)(2)(2)(4)
AFUDC equity depreciation3718136724—
Tax credits(b)
(63)(11)(46)(7)(39)(2)(2)(1)
Interest on company-owned life insurance(a)
(114)———————
Other items, net(37)—(12)(7)(5)6(3)—
Income tax expense from continuing operations$438 $141 $377 $149 $261 $63 $110 $84 
Effective tax rate9.2 %8.8 %16.2 %13.0 %20.4 %15.9 %18.1 %18.1 %
(a)     During 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable federal adjustment of approximately $114 million and a favorable state adjustment of approximately $6 million. The favorable state adjustment is included in State income tax, net of federal income tax effect, in the above table.
(b)    Tax credits at Progress Energy and Duke Energy Florida include $28 million of certain eligible PTCs, net of discount, that were elected to be sold in 2023 under the transferability provisions of the IRA. Cash received and paid related to the transfer of tax credits is included in Cash paid for (received from) income taxes on the Consolidated Statements of Cash Flows.
 Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$856 $362 $457 $245 $238 $59 $24 $76 
State income tax, net of federal income tax effect(17)(23)44 6 48 3 2 (4)
Amortization of EDIT
(481)(195)(133)(74)(59)(79)(48)(23)
AFUDC equity income(41)(20)(14)(11)(3)(1)(2)(2)
AFUDC equity depreciation36 18 12 6 6 1 4 — 
Other tax credits(43)(12)(16)(9)(7)(2)(3)(8)
Other items, net(10)(4)(2)(5)2 (2)(1)— 
Income tax expense (benefit) from continuing operations
$300 $126 $348 $158 $225 $(21)$(24)$39 
Effective tax rate7.4 %7.3 %16.0 %13.6 %19.8 %(7.5)%(21.2)%10.8 %
 Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Income tax expense, computed at the statutory rate of 21%$838 $291 $384 $224 $194 $49 $123 $71 
State income tax, net of federal income tax effect1 (44)34 (14)47 2 18 (8)
Amortization of EDIT
(438)(184)(174)(120)(54)(22)(34)(25)
AFUDC equity income(34)(14)(11)(7)(3)(2)(4)(4)
AFUDC equity depreciation35 18 10 5 5 2 5 — 
Other tax credits(30)(12)(11)(8)(3)(1)(2)(4)
Valuation allowance(a)
(85)— — — — — — — 
Other items, net(19)(4)(5)(5)1 2 1 — 
Income tax expense from continuing operations
$268 $51 $227 $75 $187 $30 $107 $30 
Effective tax rate6.7 %3.7 %12.4 %7.0 %20.2 %12.8 %18.2 %8.8 %
(a)    In 2021, the Company recognized a federal capital gain in the amount of $426 million. As a result, a valuation allowance of $85 million related to a federal capital loss carryforward was released. This valuation allowance was originally recorded as a result of the 2019 sale of minority interest of certain renewable assets within the Commercial Renewables Disposal Groups.
Valuation allowances have been established for certain state NOL carryforwards and state income tax credits that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in state income tax, net of federal income tax effect, in the above tables.
DEFERRED TAXES
Net Deferred Income Tax Liability Components
 December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Deferred credits and other liabilities $327 $194 $77 $21 $56 $13 $18 $42 
Lease obligations 418 86 256 179 77 4 15 3 
Pension, post-retirement and other employee benefits 65 (41)(22)(1)(25)5 2 (5)
Progress Energy merger purchase accounting adjustments(a)
260 — — — — — — — 
Tax credits and NOL carryforwards 4,489 445 686 230 425 44 154 50 
Regulatory liabilities and deferred credits— — — — — — 47 — 
Investments and other assets— — — — — — 1 — 
Other 102 29 22 12 8 5 5 9 
Valuation allowance (544)— — — — — — — 
Total deferred income tax assets 5,117 713 1,019 441 541 71 242 99 
Investments and other assets (1,812)(1,213)(596)(520)(91)— — (37)
Accelerated depreciation rates (11,969)(3,411)(4,557)(1,823)(2,778)(1,314)(1,678)(944)
Regulatory assets and deferred debits, net (1,892)(468)(1,063)(658)(405)(29)— (51)
Total deferred income tax liabilities (15,673)(5,092)(6,216)(3,001)(3,274)(1,343)(1,678)(1,032)
Net deferred income tax liabilities$(10,556)$(4,379)$(5,197)$(2,560)$(2,733)$(1,272)$(1,436)$(933)
(a)    Primarily related to lease obligations and debt fair value adjustments.
The following table presents the expiration of tax credits and NOL carryforwards.
 December 31, 2023
(in millions)AmountExpiration Year
General Business Credits$2,388 2029—2043
Foreign Tax Credits(d)
1,155 2024—2028
State Carryforwards and Credits(b) (e)
390 2024—Indefinite
Corporate AMT Credits
278 Indefinite
Federal Capital Loss(f)
73 2027—2028
Federal NOL carryforwards(a) (e)
193 2024—Indefinite
Foreign NOL carryforwards(c)
12 2027—2038
Total tax credits and NOL carryforwards $4,489    
(a)    A valuation allowance of $4 million has been recorded on the Federal NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(b)    A valuation allowance of $110 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(c)    A valuation allowance of $12 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(d)    A valuation allowance of $389 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.
(e)    Indefinite carryforward for Federal NOLs, and NOLs for states that have adopted the Tax Act's NOL provisions, generated in tax years beginning after December 31, 2017.
(f)    A valuation allowance of $29 million has been recorded on the Federal Capital Loss, as presented in the Net Deferred Income Tax Liability Components table.
 December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Deferred credits and other liabilities $348 $170 $117 $33 $83 $12 $23 $24 
Lease obligations 405 89 263 197 65 4 15 3 
Pension, post-retirement and other employee benefits 192 (1)12 18 (10)9 10 (2)
Progress Energy merger purchase accounting adjustments(a)
301 — — — — — — — 
Tax credits and NOL carryforwards 4,426 444 618 167 412 20 208 37 
Regulatory liabilities and deferred credits— — — — — 3 61 — 
Investments and other assets— — — — — 3 — — 
Other 106 18 22 12 10 5 2 9 
Valuation allowance (519)— — — — — — — 
Total deferred income tax assets 5,259 720 1,032 427 560 56 319 71 
Investments and other assets (1,671)(983)(521)(432)(102)— (12)(28)
Accelerated depreciation rates (11,478)(3,410)(4,358)(1,844)(2,576)(1,192)(1,606)(892)
Regulatory assets and deferred debits, net (2,074)(480)(1,300)(628)(671)— — (21)
Total deferred income tax liabilities (15,223)(4,873)(6,179)(2,904)(3,349)(1,192)(1,618)(941)
Net deferred income tax liabilities $(9,964)$(4,153)$(5,147)$(2,477)$(2,789)$(1,136)$(1,299)$(870)
(a)    Primarily related to lease obligations and debt fair value adjustments.
UNRECOGNIZED TAX BENEFITS
The following tables present changes to unrecognized tax benefits.
 Year Ended December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$65 $17 $19 $13 $5 $1 $2 $9 
Gross decreases – tax positions in prior periods(15)— — — — — — — 
Gross increases – current period tax positions12 4 5 5 1 1 1 2 
Total changes(3)4 5 5 1 1 1 2 
Unrecognized tax benefits – December 31$62 $21 $24 $18 $6 $2 $3 $11 
 Year Ended December 31, 2022
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$51 $13 $15 $10 $4 $1 $2 $4 
Gross increases – current period tax positions14 4 4 3 1 — — 5 
Total changes14 4 4 3 1 — — 5 
Unrecognized tax benefits – December 31$65 $17 $19 $13 $5 $1 $2 $9 
 Year Ended December 31, 2021
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Unrecognized tax benefits – January 1$125 $10 $10 $6 $3 $1 $1 $1 
Gross decreases – tax positions in prior periods(a)
(86)— — — — — — — 
Gross increases – current period tax positions12 3 5 4 1 — 1 3 
Total changes(74)3 5 4 1 — 1 3 
Unrecognized tax benefits – December 31$51 $13 $15 $10 $4 $1 $2 $4 
(a)    In 2021, the Company recognized a federal capital gain in the amount of $426 million. As a result of the capital gain, a previously recorded unrecognized tax benefit related to the character of a taxable loss has been reversed. See note (a) under the Statutory Rate Reconciliation table for more details.
The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2023. None of Duke Energy Registrants anticipates a material increase or decrease in unrecognized tax benefits within the next 12 months.
 December 31, 2023
DukeDukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaOhioIndianaPiedmont
Amount that if recognized, would affect the
effective tax rate or regulatory liability(a)
$57 $20 $22 $16 $6 $2 $3 $10 
(a)    The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.
Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2018, aside from certain tax attributes carried forward for utilization in future years.