Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes [Line Items]

Income Taxes

Income Taxes

Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:

Three Months Ended March 31	2024			2023
CMS Energy, including Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		5.5			(0.5)
Renewable energy tax credits		(6.0)			(4.9)
TCJA excess deferred taxes		(3.7)			(3.7)
Taxes attributable to noncontrolling interests		1.1			0.7
Other, net		0.2			0.4
Effective tax rate		18.1	%		13.0	%
Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		4.9			—
Renewable energy tax credits		(4.0)			(4.2)
TCJA excess deferred taxes		(3.2)			(3.2)
Other, net		0.2			0.5
Effective tax rate		18.9	%		14.1	%

1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.

Consumers Energy Company

Income Taxes [Line Items]

Income Taxes

Income Taxes

Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:

Three Months Ended March 31	2024			2023
CMS Energy, including Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		5.5			(0.5)
Renewable energy tax credits		(6.0)			(4.9)
TCJA excess deferred taxes		(3.7)			(3.7)
Taxes attributable to noncontrolling interests		1.1			0.7
Other, net		0.2			0.4
Effective tax rate		18.1	%		13.0	%
Consumers
U.S. federal income tax rate		21.0	%		21.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1		4.9			—
Renewable energy tax credits		(4.0)			(4.2)
TCJA excess deferred taxes		(3.2)			(3.2)
Other, net		0.2			0.5
Effective tax rate		18.9	%		14.1	%

1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.