v3.26.1
Income Taxes (Notes)
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
8.  Income Taxes

Income tax expense included on our accompanying consolidated statements of income is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(In millions, except percentages)
Income tax expense$272 $177 $559 $363 
Effective tax rate23.3 %19.3 %22.8 %19.6 %

The effective tax rate for the three and six months ended June 30, 2026 is higher than the statutory federal rate of 21% primarily due to (i) an increase in deferred tax liability for Texas Margin Tax as a result of the enactment of changes to tax rules and (ii) state income taxes, partially offset by dividend-received deductions from our investments in Florida Gas Pipeline (Citrus), NGPL Holdings LLC, and Products (SE) Pipe Line Company (PPL).

The effective tax rate for the three months ended June 30, 2025 is lower than the statutory federal tax rate of 21% primarily due to (i) a reduction of our deferred tax liability as a result of changes in state income allocations and (ii) dividend-received deductions from our investments in Citrus, NGPL Holdings LLC, and PPL, partially offset by state income taxes.
The effective tax rate for the six months ended June 30, 2025 is lower than the statutory federal tax rate of 21% primarily due to (i) the recognition of investment tax credits generated by a biogas project; (ii) a reduction of our deferred tax liability as a result of changes in state income allocations; and (iii) dividend-received deductions from our investments in Citrus, NGPL Holdings LLC, and PPL, partially offset by state income taxes.