v3.26.1
Income Tax
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
Con Edison’s income tax expense was $100 million and $50 million for the three months ended June 30, 2026 and 2025, respectively.

CECONY’s income tax expense was $98 million and $48 million for the three months ended June 30, 2026 and 2025, respectively.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended June 30, 2026 and 2025 is as follows:
For the Three Months Ended June 30,
Con EdisonCECONY
2026202520262025
(Millions of Dollars) (% of Pre-tax income)$%$%$%$%
U.S. Federal Statutory Tax Rate (a)$8621.0 %$6221.0 %$8321.0 %$5721.0 %
State Income Taxes:
    State income taxes, net of federal income taxes (b) 215.3 134.6 205.1 145.1 
    MTA Surcharge (Surcredit) amortization, net of federal income taxes 10.4 (7)(2.5)10.4 (7)(2.6)
 Tax Credits(3)(0.8)(5)(1.8)(2)(0.6)(3)(1.2)
 Nontaxable or Nondeductible items (1)(0.1)(2)(0.8)—— (3)(0.9)
 Changes in unrecognized tax benefits —— 10.3 —— 10.3 
 Other Adjustments:
    Amortization of excess deferred federal income taxes(16)(4.0)(11)(3.7)(15)(3.7)(9)(3.3)
    Allowance for uncollectible accounts, net of regulatory recovery (1)(0.3)(9)(2.9)(1)(0.3)(9)(3.3)
    Cost of removal 122.9 93.0 112.7 83.0 
    Other 10.3 (1)(0.3)10.3 (1)(0.3)
Effective tax rate$10024.7 %$5016.9 %$9824.9 %$4817.8 %
(a)    Income before income tax expense is attributable to domestic operations.
(b)    State income taxes in New York account for the majority of the tax effect in this category.

Con Edison's income tax expense was $403 million and $292 million for the six months ended June 30, 2026 and 2025, respectively.

CECONY’s income tax expense was $329 million and $275 million for the six months ended June 30, 2026 and 2025, respectively.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the six months ended June 30, 2026 and 2025 is as follows:
For the Six Months Ended June 30,
Con EdisonCECONY
2026202520262025
(Millions of Dollars) (% of Pre-tax income)$%$%$%$%
U.S. Federal Statutory Tax Rate (a)$34321.0 %$27921.0 %$28521.0 %$26121.0 %
State Income Taxes:
    State income taxes, net of federal income taxes (b) 865.2 695.2 715.2 655.2 
    MTA Surcredit amortization, net of federal income taxes(9)(0.5)(21)(1.6)(8)(0.6)(20)(1.6)
 Tax Credits(7)(0.4)(9)(0.6)(5)(0.4)(7)(0.5)
 Nontaxable or Nondeductible items (1)(0.1)(4)(0.3)—— (4)(0.3)
 Changes in unrecognized tax benefits 10.1 20.1 10.1 20.1 
 Other Adjustments:
    Amortization of excess deferred federal income taxes(33)(2.0)(22)(1.7)(29)(2.1)(18)(1.5)
    Allowance for uncollectible accounts, net of regulatory recovery (7)(0.4)(21)(1.6)(7)(0.5)(22)(1.7)
    Cost of removal 251.5 191.5 231.7 181.5 
    Other 50.3 —— (2)(0.2)—— 
Effective tax rate$40324.7 %$29222.0 %$32924.2 %$27522.2 %
(a)    Income before income tax expense is attributable to domestic operations.
(b)    State income taxes in New York account for the majority of the tax effect in this category.

One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 and expanding certain incentives under the federal Inflation Reduction Act (IRA), as enacted on August 16, 2022 while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA have not had, and are not expected to have, a material impact on the Companies’ financial position, results of operations or liquidity.

Corporate Alternative Minimum Tax
On August 16, 2022, the IRA was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.

Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. At June 30, 2026, Con Edison accrued a CAMT liability of $72 million ($68 million of which is for CECONY) before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required.
On February 18, 2026, the Internal Revenue Service and the Department of Treasury issued Notice 2026-7, which provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability. In the six months ended June 30, 2026, Con Edison reduced its CAMT credit carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154 million as a result of adopting the interim guidance for the 2024 and 2025 tax years. This guidance will also reduce the Companies’ CAMT liability going forward. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

New York Legislation
In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. In May 2026, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2029 and extended the business capital tax through tax year 2029. Con Edison does not expect to be subject to the higher tax rate of 7.25 percent in 2026.

Uncertain Tax Positions
Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.

At June 30, 2026, the estimated uncertain tax positions for Con Edison were $10 million ($6 million of which is for CECONY). For the six months ended June 30, 2026, Con Edison recognized $0.9 million of income tax expense related to current year positions ($0.8 million of which is for CECONY). The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $10 million ($9 million, net of federal taxes) with $6 million attributable to CECONY.

The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the six months ended June 30, 2026 and 2025, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At June 30, 2026 and December 31, 2025, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.