WEC · 10-Q · 2026Q2 · Full report

Income Tax Rate Guidance

WEC ENERGY GROUP, INC. · 2026-08-04 · Importance 20 · Surprise 24 · In source text

Corporate and other income tax expense increased $3.5 million in the second quarter of 2026, primarily because interim tax expense to align with the projected annualized consolidated effective tax rate increased $8.3 million year over year. The increase was partly offset by a $2.7 million favorable resolution of a prior-period tax audit and a higher pre-tax loss. Wisconsin income tax expense decreased $6.7 million, including a $5.8 million increase in AFUDC-equity tax benefits, a $3.2 million benefit from tax-related regulatory deferrals, and a $2.2 million increase in production tax credits. Non-utility energy infrastructure income tax benefit decreased $9.4 million because of higher pre-tax income.

Key facts

• We expect our 2026 annual effective tax rate to be between 6.5% and 7.5%. source
• The IRA implements a 15% corporate alternative minimum tax and a 1% excise tax on stock repurchases, which the company currently believes will not have a material impact. source
• Income tax benefit at the non-utility energy infrastructure segment decreased $9.4 million during the second quarter of 2026 compared with the same quarter in 2025, primarily due to higher pre-tax income. source
• Income tax expense at the Wisconsin segment was $102.5 million for the six months ended June 30, 2026, a decrease of $15.0 million versus 2025. source
• The interim tax expense recorded to adjust consolidated income tax expense to the projected, annualized consolidated effective income tax rate increased by $8.3 million in the second quarter of 2026 compared with the same quarter in 2025. source
• Income tax benefits associated with AFUDC-Equity increased $13.8 million at the Wisconsin segment during the six months ended June 30, 2026. source

Impact estimates