v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule Of Components Of Income Tax Expense The components of income tax expense (benefit) were as follows: 
Year Ended December 31, (in millions)
202520242023
Income Taxes
Current
Federal$(30.4)$(19.3)$— 
State(1.6)9.4 5.3 
Total Current (Benefit) Expense
(32.0)(9.9)5.3 
Deferred
Federal
Taxes before operating loss carryforwards and investment credits189.2 105.9 49.7 
Tax utilization expense of operating loss carryforwards34.2 60.4 65.1 
Investment tax credits— (0.1)(2.1)
State13.1 2.6 22.5 
Total Deferred Expense
236.5 168.8 135.2 
Deferred Investment Tax Credits
(0.7)(0.8)(1.0)
Income Taxes from Continuing Operations
$203.8 $158.1 $139.5 
We earn federal Investment Tax Credits ("ITC"s) and Production Tax Credits ("PTC"s) related to qualifying renewable energy projects. These credits are nonrefundable, can be utilized to offset income tax liabilities, and are transferable. We recognize the benefit of these credits within income tax expense (benefit) in the period the credits are generated.

During the periods ended December 31, 2025 and 2024, respectively, we elected to monetize certain transferable ITC/PTC credits through sales to unrelated third‑party taxpayers. Accordingly, the cash proceeds received from the sale of the credits are reflected as an adjustment to income tax (benefit) expense. We recognized a current tax benefit associated with the monetization of these credits of $19.3 million and $18.8 million, for the years ended December 31, 2025, and 2024, respectively. These amounts offset current tax expense in the years received and a regulatory liability was established to pass back to customers over ten years, as ordered by the regulator.

In connection with the NIPSCO Minority Interest Transaction during 2023, NiSource recognized a $63.5 million income tax benefit in additional paid in capital related to 19.9% of NIPSCO’s excess deferred income taxes attributable to Blackstone’s noncontrolling interest. This benefit does not impact NIPSCO’s regulatory books or the excess deferred taxes that will benefit customers through lower future rates in accordance with applicable regulatory orders. See Note 4, "Noncontrolling Interests," for further discussion of the NIPSCO Minority Interest Transaction.
Schedule Of Reasons Behind Differences In Computation Of Total Income Taxes
Year Ended December 31, (in millions)
202520242023
Book income before income taxes$1,216.4 $1,002.8 $813.9 
Tax expense (benefit) at statutory federal income tax rate
255.4 21.0 %210.6 21.0 %170.8 21.0 %
State and local income taxes, net of federal income tax effect
4.9 0.4 11.7 1.2 13.7 1.7 
Tax Credits
Investment tax credit
(32.4)(2.7)(14.5)(1.5)(2.1)(0.3)
Production tax credit
(40.5)(3.3)(5.8)(0.6)(0.3)— 
Other
(3.1)(0.3)(3.0)(0.3)(1.5)(0.2)
Regulatory Adjustments
ITC / PTC
68.2 5.6 20.0 2.0 — — 
Amortization of Excess Deferred Income Taxes
(30.2)(2.5)(31.2)(3.1)(39.2)(4.8)
AFUDC equity
(5.5)(0.4)(12.5)(1.2)(5.3)(0.7)
Changes in Valuation Allowances
8.4 0.7 — — — — 
Nontaxable or Nondeductible Items
Noncontrolling interests
(18.2)(1.5)(27.3)(2.7)— — 
Other
1.2 0.1 7.6 0.8 7.8 0.9 
Other adjustments(4.4)(0.3)2.5 0.2 (4.4)(0.5)
Income Taxes$203.8 16.8 %$158.1 15.8 %$139.5 17.1 %
Schedule Of Principal Components Of Net Deferred Tax Liability Deferred income taxes result from temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The principal components of our net deferred tax liabilities were as follows:
At December 31, (in millions)
20252024
Deferred tax liabilities
Accelerated depreciation and other property differences$1,552.0 $1,419.4 
Partnership basis differences
1,431.1 1,328.6 
Other regulatory assets210.3 210.1 
Total Deferred Tax Liabilities3,193.4 2,958.1 
Deferred tax assets
Other regulatory liabilities and deferred investment tax credits (including TCJA)185.1 170.4 
Pension and other postretirement/postemployment benefits32.0 58.8 
Net operating loss carryforwards
326.0 369.4 
Environmental liabilities10.3 12.2 
Other accrued liabilities49.6 43.4 
Disallowed §163(j) interest expense carryforward
8.4 — 
General business credits
77.3 20.5 
Other, net19.4 8.2 
Total Deferred Tax Assets708.1 682.9 
Valuation Allowance(14.8)(6.4)
Net Deferred Tax Assets693.3 676.5 
Net Deferred Tax Liabilities$2,500.1 $2,281.6 
Schedule of Unrecognized Tax Benefits Roll Forward A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
At December, (in millions)
202520242023
Opening Balance$21.7 $21.7 $21.7 
Gross decreases - tax positions in prior period— — — 
Gross increases - current period tax positions— — — 
Ending Balance$21.7 $21.7 $21.7 
Offset for net operating loss carryforwards(21.7)(21.7)(21.7)
Balance, Less Net Operating Loss Carryforwards$— $— $— 
Summary of Tax Credit Carryforwards
At December 31, 2025 (in millions)
Deductible Amount
Deferred Tax Asset
Valuation Allowance
Expiration Period
Federal losses
$1,192.0 $250.3 $— Indefinite
Federal investment tax credits
— 31.0 — 2043-2045
Federal production tax credits
— 23.4 — 2040-2045
Federal other credit
— 22.9 — 2029-2045
Federal disallowed interest expense carryforward
— 8.4 (8.4)Indefinite
State losses
1,867.1 75.4 (6.4)2029-2045
Total$411.4 $(14.8)
Cash Taxes Paid In accordance with ASU 2023-09, the following table provides cash taxes paid for each period presented, which represents the actual cash payments made for income taxes to federal and state authorities by jurisdiction and differs from the income tax expense recognized for financial reporting purposes due to deferred taxes, credits, and other reconciling items.
Year Ended December 31, (in millions)
202520242023
Jurisdiction
Federal
$2.5 $— $— 
Pennsylvania
(0.2)3.0 4.0 
Virginia
— 1.2 5.4 
Ohio local
0.7 — — 
Other
0.3 0.1 — 
Total Cash Taxes Paid
$3.3 $4.3 $9.4