Income Taxes (Tables)

3 Months Ended

Mar. 31, 2026

Summary of Significant Factors Impact on Difference Between Effective Tax Rate and Federal Statutory Rate

The following table reconciles the difference between the Company's effective tax rate and the federal statutory rate for the three months ended March 31 (dollars in millions):


	2026						2025
Income from continuing operations before income tax expense (benefit)	$	105		N/A			$	91		N/A
U.S. federal statutory tax rate		22			21.0	%		19			21.0	%
State income taxes, net of federal income tax effect		1			1.0			1			1.0
Other adjustments:
Flow through related to deduction of meters and mixed service costs (1)		(3	)		(2.9	)		(3	)		(3.3	)
Excess deferred tax amortization		(4	)		(3.8	)		(4	)		(4.4	)
CARES Act tax benefit amortization		(1	)		(1.0	)		—			—
Other		(2	)		(1.8	)		(1	)		(1.1	)
Total other adjustments		(10	)		(9.5	)		(8	)		(8.8	)
Effective tax rate	$	13			12.5	%	$	12			13.2	%

(1)

The Company's general rate cases included approval of base rate increases, offset by tax customer credits. As the tax customer credits are returned to customers, this results in a decrease to income tax expense as a result of flowing through the benefits related to meters and mixed service costs.

AVISTA CORP 10-Q