EIX · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

EDISON INTERNATIONAL · 2026-10-29 · Importance 41 · Surprise 24 · Matches filing data

SCE income tax expense decreased $597 million in the nine months ended September 30, 2026, reflecting $417 million of lower tax expense from lower pre-tax income and $180 million of higher flow-through tax benefits passed to customers. The flow-through benefits included $236 million recorded in 2026 after regulatory approval to return proceeds, with interest, from the 2025 monetization of investment tax credits from utility-owned energy storage projects and nuclear production tax credits. Edison International and SCE became subject to the corporate alternative minimum tax in 2026 and expect any CAMT paid to be creditable against future income taxes.

Key facts

• SCE expects to generate $158 million of investment tax credits in future periods for utility-owned storage projects, with the associated tax benefits recognized and returned to customers as the credits are utilized. source
• Edison International and SCE became subject to the IRA corporate alternative minimum tax beginning in 2026 and expect any CAMT paid to be creditable against future income taxes. source
• In the nine months ended September 30, 2026, Edison International's decrease in income tax expense of $597 million was primarily due to $417 million of lower tax expense from lower pre-tax income and $180 million of higher flow-through tax benefits passed through to customers. source
• The flow-through tax benefits included $236 million recorded in 2026 after regulatory approval to return to customers, with interest, net proceeds from the 2025 monetization of investment tax credits from utility-owned energy storage projects and nuclear production tax credits. source

Impact estimates