INTC · 10-K · 2025A · Full report

Income Tax Rate Changes

INTEL CORP · 2026-01-23 · Importance 83 · Surprise 92

Intel's provision for taxes was $1.531 billion in 2025 on income before taxes of $1.557 billion, producing an effective tax rate of 98.3% in 2025 versus 71.6% in 2024. The 2025 effective tax rate increase was primarily related to a change in 2025 valuation allowance against current year tax attributes relative to 2024 activity, partially offset by a nonrecurring 2025 gain on the Altera divestiture. In Q3 2024 Intel established a $9.9 billion valuation allowance against U.S. deferred tax assets, which materially impacted the 2024 provision; the company assesses recoverability quarterly. On July 4, 2025 the One Big Beautiful Bill Act enacted tax law changes (including permanent 100% bonus depreciation and AMIC credit rate increases) and Intel is evaluating the Act's phased provisions that take effect through 2027.

Key facts

• Intel established a $9.9 billion valuation allowance against U.S. deferred tax assets in Q3 2024.
• On July 4, 2025, the One Big Beautiful Bill Act was signed into law making permanent elements of the Tax Cuts and Jobs Act including 100% bonus depreciation and increasing the AMIC credit rate to 35% from 25% for qualifying assets.
• Provision for taxes was $1,531 million in 2025 and $8,023 million in 2024; effective tax rate was 98.3% in 2025 and 71.6% in 2024.
• In 2024 Intel recorded $9.9 billion of non-cash charges to provision for income taxes substantially related to valuation allowances recorded to net deferred tax assets.

Impact estimates