| Income Taxes XPLR recognizes in income its applicable ownership share of income taxes due to the disregarded tax status of substantially all of the projects under XPLR OpCo. Net income or loss attributable to noncontrolling interests includes minimal income taxes.
A reconciliation of the income tax expense (benefit) and effective tax rate based on the statutory U.S. federal income tax rate is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | (millions, except for percentages) | | Income tax expense (benefit) at U.S. statutory rate of 21% | $ | 21 | | | 21.0 | % | | $ | (4) | | | 21.0 | % | | $ | — | | | 21.0 | % | | $ | (74) | | | 21.0 | % | | Increases (reductions) resulting from: | | | | | | | | | | | | | | | | | Taxes attributable to noncontrolling interests | — | | | — | | | 57 | | | (311.4) | | | 10 | | | 503.8 | | | 77 | | | (21.9) | | | | | | | | | | | | | | | | | | State income taxes – net of federal income tax expense (benefit) | 1 | | | 1.0 | | | 8 | | | (44.7) | | | 1 | | | 50.4 | | | (7) | | | 1.9 | | | Clean energy tax credits | (15) | | | (14.9) | | | (20) | | | 107.7 | | | (70) | | | (3,526.3) | | | (34) | | | 9.6 | | | Valuation allowance | 1 | | | 1.0 | | | 1 | | | (7.6) | | | 3 | | | 151.1 | | | 2 | | | (0.5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other – net | (2) | | | (2.0) | | | 1 | | | (3.9) | | | — | | | — | | | — | | | 0.1 | | | Income tax expense (benefit) and effective tax rate from continuing operations | $ | 6 | | | 6.1 | % | | $ | 43 | | | (238.9) | % | | $ | (56) | | | (2,800.0) | % | | $ | (36) | | | 10.2 | % |
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