Effective Income Tax Rate Reconciliation, Nondeductible Expense, Charitable Contributions, Amount

[Table of Contents](#i6266d2788e5849989ad57be380853c2d_7)Entergy Corporation and SubsidiariesNotes to Financial Statements  
  
  


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| 2019 |  | Entergy Arkansas |  | Entergy Louisiana |  | Entergy Mississippi |  | Entergy New Orleans |  | Entergy Texas |  | System Energy |
|   |  | (In Thousands) |
| Current: |  |   |  |   |  |   |  |   |  |   |  |   |
| Federal |  | ($14,549) |  |  | ($20,173) |  |  | ($8,939) |  |  | ($5,822) |  |  | $16,035  |  |  | $16,256  |  |
| State |  | (714) |  |  | (735) |  |  | 5,823  |  |  | 1,856  |  |  | 663  |  |  | (2,831) |  |
| Total |  | (15,263) |  |  | (20,908) |  |  | (3,116) |  |  | (3,966) |  |  | 16,698  |  |  | 13,425  |  |
| Deferred and non-current - net |  | (30,278) |  |  | 147,453  |  |  | 34,579  |  |  | 4,248  |  |  | (69,963) |  |  | 422  |  |
| Investment tax credit adjustments - net |  | (1,228) |  |  | (4,922) |  |  | (597) |  |  | (96) |  |  | (631) |  |  | 1,502  |  |
| Income taxes |  | ($46,769) |  |  | $121,623  |  |  | $30,866  |  |  | $186  |  |  | ($53,896) |  |  | $15,349  |  |

  
Total income taxes for Entergy Corporation and Subsidiaries differ from the amounts computed by applying the statutory income tax rate to income before income taxes.  The reasons for the differences for the years 2021, 2020, and 2019 are:

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | 2021 |  | 2020 |  | 2019 |
|   | (In Thousands) |
| Net income attributable to Entergy Corporation | $1,118,492  |  |  | $1,388,334  |  |  | $1,241,226  |  |
| Preferred dividend requirements of subsidiaries | 227  |  |  | 18,319  |  |  | 17,018  |  |
| Consolidated net income | 1,118,719  |  |  | 1,406,653  |  |  | 1,258,244  |  |
| Income taxes | 191,374  |  |  | (121,506) |  |  | (169,825) |  |
| Income before income taxes | $1,310,093  |  |  | $1,285,147  |  |  | $1,088,419  |  |
| Computed at statutory rate (21%) | $275,120  |  |  | $269,881  |  |  | $228,568  |  |
| Increases (reductions) in tax resulting from: |   |  |   |  |   |
| State income taxes net of federal income tax effect | 79,273  |  |  | 60,087  |  |  | 61,791  |  |
| Regulatory differences - utility plant items | (57,556) |  |  | (53,229) |  |  | (45,336) |  |
| Equity component of AFUDC | (14,799) |  |  | (25,080) |  |  | (30,444) |  |
| Amortization of investment tax credits | (7,695) |  |  | (8,386) |  |  | (8,093) |  |
| Flow-through / permanent differences | (5,585) |  |  | 11,099  |  |  | (2,059) |  |
|  |  |  |  |  |  |
| Amortization of excess ADIT (a) | (66,478) |  |  | (59,629) |  |  | (205,614) |  |
|  |  |  |  |  |  |
| Arkansas and Louisiana Rate Changes (b) | (27,108) |  |  | —  |  |  | —  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| IRS audit adjustment (d) | —  |  |  | (301,041) |  |  | —  |  |
|  |  |  |  |  |  |
| Entergy Wholesale Commodities restructuring (c) | —  |  |  | (9,223) |  |  | (173,725) |  |
|  |  |  |  |  |  |
| Stock compensation (e) | —  |  |  | (25,591) |  |  | —  |  |
| Charitable contribution (c) | —  |  |  | —  |  |  | (19,101) |  |
| Net operating loss recognition | —  |  |  | —  |  |  | (41,427) |  |
| Provision for uncertain tax positions | 16,533  |  |  | 15,208  |  |  | 7,332  |  |
| Valuation allowance | (2,600) |  |  | —  |  |  | 59,345  |  |
| Other - net | 2,269  |  |  | 4,398  |  |  | (1,062) |  |
| Total income taxes as reported | $191,374  |  |  | ($121,506) |  |  | ($169,825) |  |
| Effective Income Tax Rate | 14.6  | % |  | (9.5  | %) |  | (15.6  | %) |

  
(a)See “Other Tax Matters - Tax Cuts and Jobs Act” below for discussion of the amortization of excess accumulated deferred income taxes (ADIT) in 2019, 2020, and 2021 and the tax legislation enactment in 2017. (b)See “Arkansas and Louisiana Corporate Income Tax Rate Changes” below for details. 108
