GE · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

GENERAL ELECTRIC CO · 2026-07-16 · Importance 45 · Surprise 50

The Company's effective income tax rate was 13.2% for the six months ended June 30, 2026 versus 14.5% in the six months ended June 30, 2025; the decrease was primarily driven by increased tax benefits on global activities, including the impact of the One Big Beautiful Bill Act (OBBBA). The OECD/G20 issued a Side‑by‑Side (SbS) package in 2026 simplifying Pillar 2, creating new safe harbors, fully exempting U.S.‑parented groups from two of three top‑up taxes and extending the Transitional CbCR Safe Harbor through fiscal year 2027, but local legislative enactment is required and has not yet been reflected in accounting estimates. The Company continues to refine the Pillar 2 impact as jurisdictions adopt SbS and does not expect significant changes to the tax provision from SbS as enacted, but acknowledges uncertainty. Separately, the IRS is auditing consolidated U.S. returns for 2016–2020; the Company received AOF IDRs in March 2026, believes existing accruals are sufficient but notes the IRS could assert material additional taxes and that resolution could be time‑consuming and is unlikely within 12 months.

Key facts

• Adjusted effective income tax rate (Non-GAAP) for the six months ended June 30, 2026 was 15.7% compared to 18.2% for the six months ended June 30, 2025. source
• Effective income tax rate for the three months ended June 30, 2026 was 14.5% compared to 16.2% for the three months ended June 30, 2025. source
• Adjusted effective income tax rate (Non-GAAP) for the three months ended June 30, 2026 was 16.7% compared to 18.7% for the three months ended June 30, 2025. source
• Effective income tax rate for the six months ended June 30, 2026 was 13.2% compared to 14.5% for the six months ended June 30, 2025. source
• Effective income tax rate for the six months ended June 30, 2026: 13.2%; for the six months ended June 30, 2025: 14.5%. source
• GE received Acknowledgement of Facts Information Document Requests (AOF IDRs) from the IRS in March 2026 relating to audits of consolidated U.S. income tax returns for 2016-2020. source
• Deferred income taxes net deferred income tax asset at June 30, 2026: $6,929 million (total deferred income tax assets $7,362 million). source