v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate
The income tax provision consisted of the following amounts:
Three months ended June 30,Six months ended June 30,
2026202520262025
(In millions, except percentages)
Income (loss) before income taxes$27 $17 $(43)$(87)
Income tax (benefit) expense(3)5 (5)5 
Effective income tax rate(11.1)%29.4 %11.6 %(5.7)%
For the three and six months ended June 30, 2026 and 2025, the overall effective tax rate was different than the statutory rate of 21% primarily due to the allocation of taxable earnings and losses based on the partners’ interest in Clearway Energy LLC, which includes the effects of applying the HLBV method of accounting for book purposes for certain partnerships.
For tax purposes, Clearway Energy LLC is treated as a partnership; therefore, the Company and CEG each record their respective share of taxable income or loss.
Tax Credits
In January 2026, the Company received $282 million from the transfer of PTCs and ITCs, of which $279 million related to the Pine Forest facility and was primarily used to repay the $231 million outstanding on the tax credit transfer bridge loan as further described in Note 7, Long-term Debt.