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 Edison | CECONY | | 2026 | 2025 | 2026 | 2025 | | (Millions of Dollars) (% of Pre-tax income) | $ | % | $ | % | $ | % | $ | % | | | | | | | | | | | U.S. Federal Statutory Tax Rate (a) | $86 | 21.0 | % | $62 | 21.0 | % | $83 | 21.0 | % | $57 | 21.0 | % | | State Income Taxes: | | | | | | | | | | State income taxes, net of federal income taxes (b) | 21 | 5.3 | | 13 | 4.6 | | 20 | 5.1 | | 14 | 5.1 | | | MTA Surcharge (Surcredit) amortization, net of federal income taxes | 1 | 0.4 | | (7) | (2.5) | | 1 | 0.4 | | (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 | — | — | | 1 | 0.3 | | — | — | | 1 | 0.3 | | | 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 | 12 | 2.9 | | 9 | 3.0 | | 11 | 2.7 | | 8 | 3.0 | | | Other | 1 | 0.3 | | (1) | (0.3) | | 1 | 0.3 | | (1) | (0.3) | | | Effective tax rate | $100 | 24.7 | % | $50 | 16.9 | % | $98 | 24.9 | % | $48 | 17.8 | % |
(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. 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 Edison | CECONY | | 2026 | 2025 | 2026 | 2025 | | (Millions of Dollars) (% of Pre-tax income) | $ | % | $ | % | $ | % | $ | % | | | | | | | | | | | U.S. Federal Statutory Tax Rate (a) | $343 | 21.0 | % | $279 | 21.0 | % | $285 | 21.0 | % | $261 | 21.0 | % | | State Income Taxes: | | | | | | | | | | State income taxes, net of federal income taxes (b) | 86 | 5.2 | | 69 | 5.2 | | 71 | 5.2 | | 65 | 5.2 | | | 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 | 1 | 0.1 | | 2 | 0.1 | | 1 | 0.1 | | 2 | 0.1 | | | 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 | 25 | 1.5 | | 19 | 1.5 | | 23 | 1.7 | | 18 | 1.5 | | | Other | 5 | 0.3 | | — | — | | (2) | (0.2) | | — | — | | | Effective tax rate | $403 | 24.7 | % | $292 | 22.0 | % | $329 | 24.2 | % | $275 | 22.2 | % |
(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.
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