v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Taxes [Line Items]  
Income Taxes

Note 13. Income Taxes

A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

PSEG

 

March 31,

 

 

 

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

617

 

 

$

629

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

130

 

 

$

132

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

45

 

 

 

40

 

 

 

GPRC-CEF-EE

 

 

(16

)

 

 

(15

)

 

 

Estimated Annual Effective Tax Rate Interim Period Adjustment

 

 

(37

)

 

 

(17

)

 

 

TAC

 

 

(96

)

 

 

(43

)

 

 

Other

 

 

2

 

 

 

—

 

 

 

Subtotal

 

 

(102

)

 

 

(35

)

 

 

Total Income Tax Expense

 

$

28

 

 

$

97

 

 

 

Effective Income Tax Rate

 

 

4.5

%

 

 

15.4

%

 

 

 

 

 

 

 

 

 

 

 

A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

PSE&G

 

March 31,

 

 

 

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

590

 

 

$

580

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

124

 

 

$

122

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

43

 

 

 

41

 

 

 

GPRC-CEF-EE

 

 

(16

)

 

 

(15

)

 

 

TAC

 

 

(96

)

 

 

(43

)

 

 

Other

 

 

(11

)

 

 

(13

)

 

 

Subtotal

 

 

(80

)

 

 

(30

)

 

 

Total Income Tax Expense

 

$

44

 

 

$

92

 

 

 

Effective Income Tax Rate

 

 

7.5

%

 

 

15.9

%

 

 

 

 

 

 

 

 

 

 

 

PSEG’s and PSE&G’s total income tax expense (benefit) for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, PSEG and PSE&G update the respective estimated annual effective tax rates, and if the estimated tax rate changes, PSEG and PSE&G make cumulative adjustments.

In August 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA enacted a new 15% corporate alternative minimum tax (CAMT), which is based on adjusted financial statement income, effective in 2023, and made certain changes to existing energy tax credit laws.

PSEG determined that it was not subject to the CAMT for 2024 as it was not an applicable corporation in accordance with the statute. Under the same criteria, PSEG determined that it is an applicable corporation in 2025 and therefore it is subject to the

CAMT in 2025. The impact of the CAMT for the quarter ended March 31, 2025 was not material. In September 2024, the U.S. Treasury issued proposed CAMT regulations on which taxpayers are not required to rely. The proposed CAMT regulations and certain relevant rules remain unclear and require further guidance. As such, the impact of the CAMT on PSEG’s and PSE&G’s financial statements is subject to continued evaluation.

The IRA established a new PTC for existing qualified nuclear generation facilities, effective 2024 through 2032, a new technology neutral energy tax credit, which applies to both new nuclear units and increases to nuclear generation capacity, effective 2025, and the transferability of energy tax credits, effective 2023.

The PTC for a given nuclear facility can be multiplied by five if prevailing wage requirements are met, and the value of the PTC is designed to phase out as the facility’s gross receipts increase. Both the PTC rate and phase out amount are subject to the Internal Revenue Service’s determination of annual inflation beginning in 2025.

PSEG’s estimated full year 2025 gross receipts from its nuclear operations are above the phase out amount, therefore, PSEG did not record a PTC benefit during the quarter ended March 31, 2025. The financial statement impacts from the PTC are subject to change based on several factors, including but not limited to, adjustments to estimated market prices and generation, and the issuance of authoritative guidance by Treasury/the Internal Revenue Service, including clarification of the definition of “gross receipts” used to determine the phase out. Any adjustments to amounts previously recorded could be material.

The enactment of additional federal or state tax legislation and clarification of previously enacted tax laws could impact PSEG’s and PSE&G’s financial statements.
Public Service Electric and Gas Company [Member]  
Income Taxes [Line Items]  
Income Taxes

Note 13. Income Taxes

A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

PSEG

 

March 31,

 

 

 

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

617

 

 

$

629

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

130

 

 

$

132

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

45

 

 

 

40

 

 

 

GPRC-CEF-EE

 

 

(16

)

 

 

(15

)

 

 

Estimated Annual Effective Tax Rate Interim Period Adjustment

 

 

(37

)

 

 

(17

)

 

 

TAC

 

 

(96

)

 

 

(43

)

 

 

Other

 

 

2

 

 

 

—

 

 

 

Subtotal

 

 

(102

)

 

 

(35

)

 

 

Total Income Tax Expense

 

$

28

 

 

$

97

 

 

 

Effective Income Tax Rate

 

 

4.5

%

 

 

15.4

%

 

 

 

 

 

 

 

 

 

 

 

A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

PSE&G

 

March 31,

 

 

 

 

 

2025

 

 

2024

 

 

 

 

 

Millions

 

 

 

Pre-Tax Income

 

$

590

 

 

$

580

 

 

 

Tax Computed at Statutory Rate @ 21%

 

$

124

 

 

$

122

 

 

 

Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:

 

 

 

 

 

 

 

 

State Income Taxes (net of federal income tax)

 

 

43

 

 

 

41

 

 

 

GPRC-CEF-EE

 

 

(16

)

 

 

(15

)

 

 

TAC

 

 

(96

)

 

 

(43

)

 

 

Other

 

 

(11

)

 

 

(13

)

 

 

Subtotal

 

 

(80

)

 

 

(30

)

 

 

Total Income Tax Expense

 

$

44

 

 

$

92

 

 

 

Effective Income Tax Rate

 

 

7.5

%

 

 

15.9

%

 

 

 

 

 

 

 

 

 

 

 

PSEG’s and PSE&G’s total income tax expense (benefit) for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, PSEG and PSE&G update the respective estimated annual effective tax rates, and if the estimated tax rate changes, PSEG and PSE&G make cumulative adjustments.

In August 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA enacted a new 15% corporate alternative minimum tax (CAMT), which is based on adjusted financial statement income, effective in 2023, and made certain changes to existing energy tax credit laws.

PSEG determined that it was not subject to the CAMT for 2024 as it was not an applicable corporation in accordance with the statute. Under the same criteria, PSEG determined that it is an applicable corporation in 2025 and therefore it is subject to the

CAMT in 2025. The impact of the CAMT for the quarter ended March 31, 2025 was not material. In September 2024, the U.S. Treasury issued proposed CAMT regulations on which taxpayers are not required to rely. The proposed CAMT regulations and certain relevant rules remain unclear and require further guidance. As such, the impact of the CAMT on PSEG’s and PSE&G’s financial statements is subject to continued evaluation.

The IRA established a new PTC for existing qualified nuclear generation facilities, effective 2024 through 2032, a new technology neutral energy tax credit, which applies to both new nuclear units and increases to nuclear generation capacity, effective 2025, and the transferability of energy tax credits, effective 2023.

The PTC for a given nuclear facility can be multiplied by five if prevailing wage requirements are met, and the value of the PTC is designed to phase out as the facility’s gross receipts increase. Both the PTC rate and phase out amount are subject to the Internal Revenue Service’s determination of annual inflation beginning in 2025.

PSEG’s estimated full year 2025 gross receipts from its nuclear operations are above the phase out amount, therefore, PSEG did not record a PTC benefit during the quarter ended March 31, 2025. The financial statement impacts from the PTC are subject to change based on several factors, including but not limited to, adjustments to estimated market prices and generation, and the issuance of authoritative guidance by Treasury/the Internal Revenue Service, including clarification of the definition of “gross receipts” used to determine the phase out. Any adjustments to amounts previously recorded could be material.

The enactment of additional federal or state tax legislation and clarification of previously enacted tax laws could impact PSEG’s and PSE&G’s financial statements.