Tax benefits related to NOLs

[Table of Contents](#i9e3d7fad53bb42b083be8286e4319cd4_10) The year of origin of Evergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 2021 are detailed in the following table.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of Benefit |  |
| Year of Origin |  | Evergy |  | Evergy Kansas Central |  | Evergy Metro |  |
|  |  | (millions) |  |
|  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| 2004 |  | 0.1  |  |  | —  |  |  | —  |  |  |
| 2005 |  | 0.1  |  |  | —  |  |  | —  |  |  |
| 2006 |  | 0.1  |  |  | —  |  |  | —  |  |  |
| 2007 |  | 0.1  |  |  | —  |  |  | —  |  |  |
| 2009 |  | 38.2  |  |  | 0.2  |  |  | 37.9  |  |  |
| 2010 |  | 18.3  |  |  | —  |  |  | 18.2  |  |  |
| 2011 |  | 13.3  |  |  | —  |  |  | 13.2  |  |  |
| 2012 |  | 12.8  |  |  | 2.0  |  |  | 10.7  |  |  |
| 2013 |  | 24.3  |  |  | 11.3  |  |  | 12.9  |  |  |
| 2014 |  | 24.1  |  |  | 10.7  |  |  | 13.0  |  |  |
| 2015 |  | 24.7  |  |  | 10.9  |  |  | 13.2  |  |  |
| 2016 |  | 27.1  |  |  | 11.0  |  |  | 12.4  |  |  |
| 2017 |  | 43.9  |  |  | 35.1  |  |  | 8.2  |  |  |
| 2018 |  | 43.9  |  |  | 36.3  |  |  | 7.5  |  |  |
| 2019 |  | 37.7  |  |  | 30.9  |  |  | 6.7  |  |  |
| 2020 |  | 35.9  |  |  | 28.3  |  |  | 7.4  |  |  |
| 2021 |  | 29.0  |  |  | 28.0  |  |  | 0.8  |  |  |
|  |  | $ | 373.6  |  |  | $ | 204.7  |  |  | $ | 162.1  |  |  |

Net Operating Loss CarryforwardsAt December 31, 2021 and 2020, Evergy had $33.6 million and $42.2 million, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards.  Approximately $7.1 million of Evergy's tax benefits at December 31, 2021 are related to NOLs that were acquired in the Evergy Missouri West acquisition. Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these federal NOL carryforwards to expire unutilized and has provided a valuation allowance against $7.1 million of the federal income tax benefit. The federal NOL carryforwards expire in years 2023 to 2024.  The year of origin of Evergy's related tax benefit amounts for federal NOL carryforwards as of December 31, 2021 are detailed in the following table. 

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Year of Origin |  | Amount of Benefit |  |
|  |  | (millions) |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| 2005 |  | $ | 1.9  |  |  |
| 2006 |  | 31.7  |  |  |
|  |  | $ | 33.6  |  |  |

In addition, Evergy also had deferred tax benefits of $6.6 million and $8.8 million related to state NOLs as of December 31, 2021 and 2020, respectively.  Evergy Metro had deferred tax benefits of $0.2 million related to state NOLs as of 2020. The state NOL carryforwards expire in years 2022 to 2038. Evergy does not expect to utilize $5.6 million of NOLs before the expiration date of the carryforwards of NOLs in certain states. Therefore, a valuation allowance has been provided against $5.6 million of state tax benefits.148
