ED · 10-Q · 2026Q2 · Full report

CAMT Tax Regulation

CONSOLIDATED EDISON INC · 2026-08-06 · Importance 40 · Surprise 42 · In source text

Con Edison accrued a $72 million corporate alternative minimum tax liability at June 30, 2026, including $68 million attributable to CECONY, before general business credits. Retroactive IRS and Treasury guidance allowed deductions for certain repair expenditures, reducing the CAMT credit carryforward by $205 million and increasing the general business tax credit carryforward by approximately $154 million during the first six months of 2026. The guidance is expected to reduce future CAMT liabilities, while the resulting deferred tax asset is expected to be realized because deferred tax liabilities exceed the minimum tax credit carryforward. Con Edison does not expect to be subject to New York’s increased 7.25% corporate franchise tax rate in 2026, although the rate increase was extended through 2029.

Key facts

• The interim IRS guidance (Notice 2026-7) issued on February 18, 2026 allows the Companies to deduct certain repair expenditures as a reduction to modified GAAP net income and is retroactive to the beginning of the IRA provisions in calculating CAMT liability.
• In the six months ended June 30, 2026, Con Edison reduced its CAMT credit carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154 million as a result of adopting IRS Notice 2026-7 interim guidance.
• Con Edison accrued a CAMT liability of $72 million at June 30, 2026, $68 million of which is for CECONY, with an offsetting deferred tax asset representing the minimum tax credit carryforward.
• The Companies expect their deferred tax liabilities to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required for the CAMT deferred tax asset.
• On July 4, 2025, the One Big Beautiful Bill Act was signed into law containing broad tax reform provisions, and based on management’s assessment, those provisions have not had, and are not expected to have, a material impact on the Companies’ financial position, results of operations or liquidity.

Impact estimates