v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Entity Information [Line Items]  
Income Taxes INCOME TAXES
AES Ohio's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective combined state and federal income tax rates were as follows:
Three months ended
March 31,
2026
2025
Effective combined state and federal income tax rates
22.4 
%
13.7 
%

The year-to-date rate is different from the combined federal and state statutory rate of 22.4% primarily due to the tax expense related to the amortization of a municipal tax shortage, offset by the flowthrough of the net tax benefit related to the reversal of excess deferred taxes.

AES Ohio's income tax expense for the three months ended March 31, 2026 was calculated using the estimated annual effective income tax rate for 2026 of 22.4% on ordinary income. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income or loss.

AES files federal and state income tax returns, which consolidate AES Ohio. Under a tax sharing agreement with Ohio Investments, AES Ohio is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method.