Income Taxes

PSEG’s, Power’s and PSE&G’s effective tax rates for the three months ended March 31, 2014 and 2013 were as follows:




	Three Months Ended
	March 31,
	2014		2013
PSEG	40.2	%	40.7	%
Power	40.4	%	39.8	%
PSE&G	40.1	%	41.1	%

There were no material changes in the effective tax rates of PSEG, Power and PSE&G for the three months ended March 31, 2014 as compared to the same period in the prior year.

In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. These regulations became effective in 2014 and their implementation did not have any material impact on PSEG’s and its subsidiaries’ results of operations, financial condition or cash flows.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a provision making qualified property placed into service after September 8, 2010 and before January 1, 2012, eligible for 100% bonus depreciation for tax purposes. In addition, qualified property placed into service in 2012 was eligible for 50% bonus depreciation for tax purposes. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 that further extended the 50% bonus depreciation for qualified property placed into service before January 1, 2014. In addition, long production property placed into service in 2014 is eligible for 50% bonus depreciation for tax purposes. These provisions have generated cash for PSEG through tax benefits related to the accelerated depreciation. These tax benefits otherwise would have been received over an estimated average 20 year period.

Income Taxes

PSEG’s, Power’s and PSE&G’s effective tax rates for the three months ended March 31, 2014 and 2013 were as follows:




	Three Months Ended
	March 31,
	2014		2013
PSEG	40.2	%	40.7	%
Power	40.4	%	39.8	%
PSE&G	40.1	%	41.1	%

There were no material changes in the effective tax rates of PSEG, Power and PSE&G for the three months ended March 31, 2014 as compared to the same period in the prior year.

In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. These regulations became effective in 2014 and their implementation did not have any material impact on PSEG’s and its subsidiaries’ results of operations, financial condition or cash flows.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a provision making qualified property placed into service after September 8, 2010 and before January 1, 2012, eligible for 100% bonus depreciation for tax purposes. In addition, qualified property placed into service in 2012 was eligible for 50% bonus depreciation for tax purposes. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 that further extended the 50% bonus depreciation for qualified property placed into service before January 1, 2014. In addition, long production property placed into service in 2014 is eligible for 50% bonus depreciation for tax purposes. These provisions have generated cash for PSEG through tax benefits related to the accelerated depreciation. These tax benefits otherwise would have been received over an estimated average 20 year period.

Income Taxes

PSEG’s, Power’s and PSE&G’s effective tax rates for the three months ended March 31, 2014 and 2013 were as follows:




	Three Months Ended
	March 31,
	2014		2013
PSEG	40.2	%	40.7	%
Power	40.4	%	39.8	%
PSE&G	40.1	%	41.1	%

There were no material changes in the effective tax rates of PSEG, Power and PSE&G for the three months ended March 31, 2014 as compared to the same period in the prior year.

In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. These regulations became effective in 2014 and their implementation did not have any material impact on PSEG’s and its subsidiaries’ results of operations, financial condition or cash flows.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a provision making qualified property placed into service after September 8, 2010 and before January 1, 2012, eligible for 100% bonus depreciation for tax purposes. In addition, qualified property placed into service in 2012 was eligible for 50% bonus depreciation for tax purposes. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 that further extended the 50% bonus depreciation for qualified property placed into service before January 1, 2014. In addition, long production property placed into service in 2014 is eligible for 50% bonus depreciation for tax purposes. These provisions have generated cash for PSEG through tax benefits related to the accelerated depreciation. These tax benefits otherwise would have been received over an estimated average 20 year period.