v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
The Company's provision for income taxes has been computed on a stand-alone basis. Berkshire Hathaway includes the Company in its consolidated U.S. federal and Iowa state income tax returns and the majority of the Company's U.S. federal income tax is remitted to or received from Berkshire Hathaway, pursuant to a tax allocation agreement. The Company had a current income tax receivable from Berkshire Hathaway of $1,053 million and $282 million for federal income tax as of March 31, 2026 and December 31, 2025, respectively. The Company received no net cash payments for federal income taxes from Berkshire Hathaway for each of the three-month periods ended March 31, 2026 and 2025.
A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
 20262025
 AmountPercentAmountPercent
U.S. federal statutory income tax rate
$184 21.0 %$200 21.0 %
State and local income taxes, net of federal income tax
18 2.1 14 1.5 
Foreign tax effects:
United Kingdom
Other(2)(0.2)15 1.6 
Canada
Foreign regulated flow-thru(11)(1.2)(10)(1.1)
Other1 0.1 1 0.1 
Effect of cross-border tax laws
— — (1)(0.1)
Energy-related tax credits
(564)(64.2)(560)(58.8)
Nontaxable or nondeductible items:
Equity earnings(28)(3.2)(25)(2.6)
Noncontrolling interest(12)(1.4)(9)(1.0)
Other, net2 0.2 2 0.2 
Changes in unrecognized tax benefits
1 0.1 1 0.1 
Other adjustments:
Effects of ratemaking(1)
(19)(2.3)(25)(2.6)
Other— — (2)(0.1)
Effective income tax rate$(430)(49.0)%$(399) (41.8)%
(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Energy-related tax credits relate primarily to production tax credits ("PTCs") from wind- and solar-powered generating facilities owned by MidAmerican Energy, PacifiCorp, NV Energy and BHE Renewables. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.
PAC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return and BHE includes its subsidiaries in certain state income tax returns. Consistent with established regulatory practice, PacifiCorp's provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. PacifiCorp made net cash payments for state income taxes to BHE totaling $2 million for each of the three-month periods ended March 31, 2026 and 2025. As of March 31, 2026, federal and state income taxes receivable from BHE were $228 million. As of December 31, 2025, federal income taxes receivable from BHE were $94 million and state income taxes payable to BHE were $16 million.

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
20262025
AmountPercentAmountPercent
U.S. federal statutory income tax rate
$10 21.0 %$33 21.0 %
State and local income taxes, net of federal income tax
4 8.2 8 4.9 
Energy-related tax credits
(30)(60.3)(47)(29.7)
Effects of ratemaking(1)
(5)(11.3)(13)(8.4)
Effective income tax rate$(21)(42.4)%$(19)(12.2)%
(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Energy-related tax credits relate primarily to production tax credits ("PTC") earned by PacifiCorp's wind-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Wind-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.
MEC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal income tax return and BHE includes its subsidiaries in certain state income tax returns. Consistent with established regulatory practice, MidAmerican Energy's provision for income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. For current federal and state income taxes, MidAmerican Energy had a net receivable from BHE of $315 million and $79 million as of March 31, 2026 and December 31, 2025, respectively. MidAmerican Energy received no net cash payments for income tax from BHE for each of the three-month periods ended March 31, 2026 and 2025.

The effective income tax rate for the three-month period ended March 31, 2025, of 5,900.0% resulted from a $236 million income tax benefit from energy-related tax credits associated with a $4 million pre-tax loss.

A reconciliation of the federal statutory income tax rate to MidAmerican Energy's effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
20262025
Amount
Percent
Amount
Percent
U.S. federal statutory income tax rate
$7 21.0 %$(1)21.0 %
State income tax, net of federal income tax
(1)(2.5)— — 
Energy-related tax credits
(222)(693.8)(236)5,900.0 
Other adjustments:
Effects of ratemaking
— — 1 (21.0)
Effective income tax rate$(216)(675.3)%$(236)5,900.0 %

Energy-related tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Energy recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of the remaining income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.
MidAmerican Funding, LLC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and subsidiaries in its U.S. federal income tax return and BHE includes its subsidiaries in certain state income tax returns. Consistent with established regulatory practice, MidAmerican Funding's provisions for income tax has been computed on a stand-alone basis and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. For current federal and state income taxes, MidAmerican Funding had a net receivable from BHE of $316 million and $79 million as of March 31, 2026 and December 31, 2025, respectively. MidAmerican Funding received no net cash payments for income tax from BHE for each of the three-month periods ended March 31, 2026 and 2025.

The effective income tax rate for the three-month period ended March 31, 2025, of 2,950.0% resulted from a $236 million income tax benefit from energy-related tax credits associated with an $8 million pre-tax loss.

A reconciliation of the federal statutory income tax rate to MidAmerican Funding's effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
20262025
Amount
Percent
Amount
Percent
U.S federal statutory income tax rate
$6 21.0 %$(2)21.0 %
State income tax, net of federal income tax
(1)(3.7)— — 
Energy-related tax credits
(222)(822.2)(236)2,950.0 
Other adjustments:
Effects of ratemaking
— — 1 (12.5)
Other, net(1)(2.5)1 (8.5)
Effective income tax rate$(218)(807.4)%$(236)2,950.0 %

Energy-related tax credits relate primarily to production tax credits ("PTC") earned by MidAmerican Energy's wind- and solar-powered generating facilities. Federal renewable electricity PTCs are earned as energy from qualifying wind- and solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. MidAmerican Funding recognizes its renewable electricity PTCs throughout the year based on when the credits are earned and excludes them from the annual effective tax rate that is the basis for the interim recognition of the remaining income tax expense. Wind- and solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service.
NPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return. Consistent with established regulatory practice, Nevada Power's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. For current federal and state income taxes, Nevada Power had a net receivable from BHE of $2 million and $3 million as of March 31, 2026 and December 31, 2025, respectively. Nevada Power received no net cash payments for federal income tax from BHE for each of the three-month periods ended March 31, 2026 and 2025.

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income (loss) before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
 20262025
 AmountPercentAmountPercent
U.S. Federal statutory income tax rate$3 21.0 %$(2)21.0 %
Energy-related tax credits(1)(5.6)— — 
Effects of ratemaking(1)
— — 1(9.9)
Effective income tax rate$2 15.4 %$(1)11.1 %
(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.

Energy-related tax credits relate to production tax credits ("PTCs") and investment tax credits ("ITCs") from Nevada Power's solar-powered generating facilities and energy storage properties. Federal renewable electricity PTCs are earned as energy from qualifying solar-powered generating facilities is produced and sold and are based on a per-kilowatt hour rate pursuant to the applicable federal income tax law. Solar-powered generating facilities are eligible for the credits for 10 years from the date the qualifying generating facilities are placed in-service. Federal renewable electricity ITCs are tax credits that reduce the income tax liability by a percentage of the cost from certain qualifying solar-powered generating facilities or energy storage properties over their useful lives. The percentage of the credit varies depending on attributes of the project up to a maximum of 50 percent.
SPPC  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return and BHE includes its subsidiaries in certain state income tax returns. Consistent with established regulatory practice, Sierra Pacific's provision for federal income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. For current federal and state income taxes, Sierra Pacific had a net receivable from BHE of $153 million and $— million as of March 31, 2026 and December 31, 2025, respectively. Sierra Pacific made no net cash payments for federal income tax to BHE for each of the three-month periods ended March 31, 2026 and 2025.

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
20262025
Amount
Percent
Amount
Percent
U.S. federal statutory income tax rate
$6 21.0 %$6 21.0 %
Effects of ratemaking(1)
(5)(17.4)(3)(11.0)
Effective income tax rate$1 3.6 %$3 10.0 %
(1)Effects of ratemaking is primarily attributable to activity associated with excess deferred income taxes.
EEGH  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return and BHE includes its subsidiaries in certain state income tax returns. Consistent with established regulatory practice, Eastern Energy Gas' provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. For current federal and state income taxes, Eastern Energy Gas had a payable to BHE of $63 million and $39 million as of March 31, 2026 and December 31, 2025, respectively.

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
20262025
Amount
Percent
Amount
Percent
U.S. federal statutory income tax rate
$75 21.0 %$58 21.0 %
State and local income taxes, net of federal income tax
12 3.2 6 2.1 
Nontaxable or nondeductible items:
Equity earnings6 1.6 5 2.0 
Non-controlling interest
(12)(3.4)(9)(3.4)
Other, net
(1)(0.1)— — 
Other adjustments— — (1)(0.5)
Effective income tax rate$80 22.3 %$59 21.2 %
EGTS  
Schedule of Effective Income Tax Rate Reconciliation [Line Items]  
Income Taxes Income Taxes
Berkshire Hathaway includes BHE and its subsidiaries in its U.S. federal income tax return and BHE includes its subsidiaries in certain state income tax returns. Consistent with established regulatory practice, EGTS' provision for federal and state income tax has been computed on a stand-alone basis, and substantially all of its currently payable or receivable income tax is remitted to or received from BHE pursuant to a tax allocation agreement. For current federal and state income taxes, EGTS had a payable to BHE of $22 million and $11 million as of March 31, 2026 and December 31, 2025, respectively.

A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense (benefit) is as follows (amounts in millions):
Three-Month Periods
Ended March 31,
20262025
Amount
Percent
Amount
Percent
U.S. federal statutory income tax rate$29 21.0 %$24 21.0 %
State and local income taxes, net of federal income tax 5 3.3 5 3.8 
Effective income tax rate$34 24.3 %$29 24.8 %