v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate
The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:
Three months ended June 30,Six months ended June 30,
2026202520262025
(in millions)Amount%Amount%Amount%Amount%
Edison International:
Income from operations before income taxes$675 $384 $1,346 $2,324 
Federal statutory tax rate
$142 21.0 %$81 21.0 %$283 21.0 %$488 21.0 %
State income tax, net of federal income tax effect1
20 3.0 %(18)(4.7)%41 3.0 %91 3.9 %
Tax credits
— — %(5)(1.3)%(15)(1.1)%(11)(0.5)%
Other adjustments
Property-related(57)(8.4)%(68)(17.7)%(122)(9.0)%(126)(5.4)%
Corporate alternative minimum tax
2 0.3 %— — %20 1.5 %— — %
Other7 1.0 %(4)(0.9)%8 0.6 %(8)(0.3)%
Effective tax rate$114 16.9 %$(14)(3.6)%$215 16.0 %$434 18.7 %
SCE:
Income from operations before income taxes$819 $490 $1,595 $2,579 
Federal statutory tax rate
$172 21.0 %$103 21.0 %$335 21.0 %$542 21.0 %
State income tax, net of federal income tax effect1
32 3.9 %(11)(2.2)%59 3.7 %106 4.2 %
Tax credits
— — %(5)(1.0)%(15)(0.9)%(11)(0.5)%
Other adjustments
Property-related(57)(7.0)%(68)(13.9)%(122)(7.7)%(126)(4.9)%
Corporate alternative minimum tax
2 0.3 %— — %20 1.3 %— — %
Other1 0.1 %(5)(1.0)%1 — %(9)(0.3)%
Effective tax rate$150 18.3 %$14 2.9 %$278 17.4 %$502 19.5 %
1State taxes in California represents substantially all of the tax effect in this category.
The CPUC requires flow-through ratemaking. For SCE, it includes property-related adjustments, the corporate alternative minimum tax, and other temporary differences which reverse over time. These flow-through items increase or decrease SCE's current authorized revenue requirements in rate cases and give rise to regulatory assets or liabilities for deferred income taxes expected to be realized in future periods. Differences between the amounts authorized in SCE's rate cases, adjusted for balancing and memorandum account activity, and flow-through amounts recorded also result in changes to tax-related regulatory assets and liabilities, with a corresponding impact on the effective tax rate, to the extent recovery in future rates is probable. For further information, see Note 11.
The IRA imposed a CAMT, which Edison International and SCE are subject to beginning in 2026. Edison International and SCE expect that any CAMT paid will be creditable against future income taxes.
In addition, under the IRA, SCE expects to generate $158 million investment tax credit in future periods related to utility owned storage projects. The associated tax benefits will be recognized and returned to customers as the credits are utilized.
Tax Disputes
The tax years currently open for examination are 2022 – 2025 for the Internal Revenue Service and 2013 – 2018 and 2021 – 2025 for the Franchise Tax Board.
Income Taxes Paid
Edison International makes income tax payments to the taxing authorities on behalf of the consolidated group. SCE makes tax-allocation payments to Edison International under the applicable tax-allocation agreement. SCE does not make payments to the taxing authorities directly.
The components of income tax paid, net of refunds by location of taxing jurisdiction are:
Edison InternationalSCE
Six months ended June 30,
(in millions)2026202520262025
Federal$— $— $18 $— 
California113 — 89 —