CEG · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Constellation Energy Corp · 2026-11-09 · Importance 47 · Surprise 48

The effective income tax rate for the nine months ended September 30, 2026 was 25.4%, down from 32.9% for the comparable 2025 period. Income tax expense was $1,333 million in 2026, compared with the displayed 2025 effective rate of 32.9%; the filing table does not provide a readable 2025 tax expense amount in the supplied text. Qualified nuclear decommissioning trust fund income and losses added 3.9 percentage points to the 2026 rate, versus 10.1 points in 2025, while state income taxes added 1.2 points in 2026 versus 4.2 points in 2025. The nine-month tax rate reduction was partly offset by the smaller tax-credit benefit from production tax credits, which reduced the rate by 0.4 points in 2026 versus 1.9 points in 2025.

Key facts

• Effective income tax rates were 18.2% and 33.4% for the three months ended September 30, 2026 and 2025, respectively, and 25.4% and 32.9% for the nine months ended September 30, 2026 and 2025, respectively.
• Constellation’s effective income tax rate for the nine months ended September 30, 2026 was 25.4%, compared with 32.9% for the nine months ended September 30, 2025.
• The decrease in the effective tax rate for the three months ended September 30, 2026 was primarily driven by a long-term rate change and lower qualified NDT fund income in the third quarter of 2026.
• The decrease in the effective tax rate for the nine months ended September 30, 2026 was primarily due to proportionally lower qualified NDT fund income in 2026 and a long-term rate change.
• The marginal statutory income tax rate was 25.4% and 25.6% for the three and nine months ended September 30, 2026 and 2025, respectively.