CEG · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Constellation Energy Corp · 2026-08-06 · Importance 25 · Surprise 32

The six-month effective income tax rate decreased to 30.7% in 2026 from 32.4% in 2025. Qualified nuclear decommissioning trust fund income and losses contributed a 6.8 percentage-point increase to the 2026 rate, compared with an 11.4 percentage-point increase in 2025. State income taxes contributed 3.2 percentage points in 2026, with California, Massachusetts and New York accounting for more than half of that effect. In February 2026, IRS Notice 2026-7 caused Exelon to amend its 2023 and 2024 returns, and Constellation remitted $[amount not provided] million to Exelon under the tax matters agreement in March 2026.

Key facts

• Effective income tax rate for the three months ended June 30, 2026: 44.2%; for the three months ended June 30, 2025: 34.6%. source
• Effective income tax rate for the six months ended June 30, 2026: 30.7%; for the six months ended June 30, 2025: 32.4%. source
• In 2026, state taxes in California, Massachusetts, and New York made up the majority (greater than 50%) of the state tax effect category. source
• U.S. federal statutory income tax rate used: 21.0%. source