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Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Years Ended December 31,
202220212020
U.S. income (loss)$9,454 $9,513 $6,881 
Non-U.S. income (loss)1,306 1,902 540 
Income (loss) before income taxes and equity income (loss)$10,760 $11,415 $7,421 
Years Ended December 31,
202220212020
Current income tax expense (benefit)
U.S. federal$389 $20 $84 
U.S. state and local368 142 272 
Non-U.S.707 395 493 
Total current income tax expense (benefit)1,464 557 849 
Deferred income tax expense (benefit)
U.S. federal263 1,699 632 
U.S. state and local109 229 (15)
Non-U.S.53 286 308 
Total deferred income tax expense (benefit)425 2,214 925 
Total income tax expense (benefit)$1,888 $2,771 $1,774 
Provisions are made for estimated U.S. and non-U.S. income taxes which may be incurred on the reversal of our basis differences in investments in foreign subsidiaries and corporate joint ventures not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investments primarily as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $3.5 billion and $3.2 billion at December 31, 2022 and 2021. We have indefinitely reinvested basis differences related to investments in non-consolidated China JVs of $3.4 billion at December 31, 2022 and 2021 as a result of fresh-start reporting. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.
Years Ended December 31,
202220212020
Income tax expense at U.S. federal statutory income tax rate$2,260 $2,397 $1,558 
State and local tax expense (benefit)388 301 219 
Non-U.S. income taxed at other than the U.S. federal statutory tax rate32 36 (1)
U.S. tax impact on Non-U.S. income and activities5 129 (160)
Change in valuation allowances(392)665 370 
Change in tax laws78 (93)— 
General business credits and manufacturing incentives(829)(492)(366)
Settlements of prior year tax matters— 11 (18)
Realization of basis differences in affiliates209 (295)(12)
Foreign currency remeasurement36 28 (7)
Other adjustments102 84 191 
Total income tax expense (benefit)$1,888 $2,771 $1,774 
Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2022 and 2021 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the bases of such assets, liabilities and equity as measured based on tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:
December 31, 2022December 31, 2021
Deferred tax assets
Postretirement benefits other than pensions$1,120 $1,572 
Pension and other employee benefit plans997 1,540 
Warranties, dealer and customer allowances, claims and discounts4,341 4,253 
U.S. capitalized research expenditures8,851 7,285 
U.S. operating loss and tax credit carryforwards(a)5,861 6,959 
Non-U.S. operating loss and tax credit carryforwards(b)6,296 6,593 
Miscellaneous2,773 3,468 
Total deferred tax assets before valuation allowances30,240 31,670 
Less: valuation allowances(7,744)(8,855)
Total deferred tax assets22,495 22,815 
Deferred tax liabilities
Property, plant and equipment1,957 1,775 
Intangible assets707 729 
Total deferred tax liabilities2,664 2,504 
Net deferred tax assets$19,832 $20,311 
_________
(a)    At December 31, 2022, U.S. operating loss deferred tax assets were $417 million, where $129 million can be carried forward indefinitely and $288 million will expire by 2040, if not utilized. At December 31, 2022, U.S. tax credit carryforwards were $5.4 billion, where $292 million can be carried forward indefinitely and $5.2 billion will expire by 2042, if not utilized.
(b)    At December 31, 2022, Non-U.S. operating loss deferred tax assets were $6.1 billion, where $5.1 billion can be carried forward indefinitely and $1.1 billion will expire by 2042, if not utilized. At December 31, 2022, Non-U.S. tax credit carryforwards were $148 million, where $112 million can be carried forward indefinitely and $36 million will expire by 2042, if not utilized.

Valuation Allowances During the years ended December 31, 2022 and 2021, valuation allowances against deferred tax assets of $7.7 billion and $8.9 billion were comprised of cumulative losses, credits and other timing differences, primarily in Germany, Spain, South Korea, the U.S. and Brazil.

In the year ended December 31, 2022, GM entered into a Share Purchase Agreement with SoftBank, pursuant to which GM acquired SoftBank’s equity ownership stake in Cruise Holdings and, separately, made an additional $1.35 billion investment in Cruise in place of SoftBank. As of March 31, 2022, GM’s ownership in Cruise increased above the 80% threshold which allowed for inclusion of Cruise in our U.S. Federal consolidated income tax return and the release of a valuation allowance of $482 million against certain Cruise deferred tax assets. Refer to Note 20 to our consolidated financial statements for additional information regarding the Share Purchase Agreement with SoftBank.
Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits:
Years Ended December 31,
202220212020
Balance at beginning of period$634 $1,086 $775 
Additions to current year tax positions12 22 435 
Additions to prior years' tax positions14 46 26 
Reductions to prior years' tax positions(98)(473)(132)
Reductions in tax positions due to lapse of statutory limitations(20)(17)(3)
Settlements(10)(26)(10)
Other(12)(4)(5)
Balance at end of period$520 $634 $1,086 

At December 31, 2022 and 2021, there were $356 million and $411 million of unrecognized tax benefits that if recognized would favorably affect our effective tax rate in the future. In the years ended December 31, 2022, 2021 and 2020, income tax related interest and penalties were insignificant. At December 31, 2022 and 2021, we had liabilities of $86 million for income tax related interest and penalties.

At December 31, 2022, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months.
Other Matters Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2011 to 2022 with various significant tax jurisdictions. Tax authorities may have the ability to review and adjust net operating loss or tax credit carryforwards that were generated prior to these periods if utilized in an open tax year. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the sustainability of income tax credits for a given audit cycle.