Amount of tax credit acquired in business combination

[Table of Contents](#i9e3d7fad53bb42b083be8286e4319cd4_10) Deferred Income TaxesThe tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets is in the following table.

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|  | December 31 |
|  | 2021 |  | 2020 |
|  | Evergy |  | Evergy Kansas Central |  | Evergy Metro |  | Evergy |  | Evergy Kansas Central |  | Evergy Metro |
| Deferred tax assets: | (millions) |
| Tax credit carryforward | $ | 375.2  |  |  | $ | 206.3  |  |  | $ | 162.1  |  |  | $ | 379.6  |  |  | $ | 176.5  |  |  | $ | 195.9  |  |
| Income taxes refundable to customers, net | 336.6  |  |  | 168.5  |  |  | 123.8  |  |  | 418.2  |  |  | 237.5  |  |  | 132.8  |  |
| Deferred employee benefit costs | 158.3  |  |  | 84.8  |  |  | 86.8  |  |  | 227.6  |  |  | 105.4  |  |  | 117.9  |  |
| Net operating loss carryforward | 40.2  |  |  | —  |  |  | —  |  |  | 51.0  |  |  | —  |  |  | 0.2  |  |
| Deferred state income taxes | 146.9  |  |  | 101.0  |  |  | 38.6  |  |  | 145.9  |  |  | 101.7  |  |  | 37.8  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Accrued liabilities | 157.6  |  |  | 71.3  |  |  | 56.4  |  |  | 152.7  |  |  | 61.8  |  |  | 61.0  |  |
| Other | 200.0  |  |  | 100.6  |  |  | 59.6  |  |  | 181.0  |  |  | 91.4  |  |  | 44.8  |  |
| Total deferred tax assets before   valuation allowance | 1,414.8  |  |  | 732.5  |  |  | 527.3  |  |  | 1,556.0  |  |  | 774.3  |  |  | 590.4  |  |
| Valuation allowances | (12.8) |  |  | —  |  |  | —  |  |  | (14.4) |  |  | —  |  |  | —  |  |
| Total deferred tax assets, net | 1,402.0  |  |  | 732.5  |  |  | 527.3  |  |  | 1,541.6  |  |  | 774.3  |  |  | 590.4  |  |
| Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
| Plant-related | (2,701.1) |  |  | (1,308.7) |  |  | (996.7) |  |  | (2,693.7) |  |  | (1,341.2) |  |  | (972.1) |  |
| Deferred employee benefit costs | (96.8) |  |  | (52.9) |  |  | (43.5) |  |  | (171.4) |  |  | (75.6) |  |  | (76.3) |  |
| ARO regulatory assets | (133.7) |  |  | (53.9) |  |  | (49.9) |  |  | (136.7) |  |  | (49.9) |  |  | (54.3) |  |
| Acquisition premium | (43.9) |  |  | (43.9) |  |  | —  |  |  | (46.9) |  |  | (46.9) |  |  | —  |  |
| Other regulatory assets | (152.1) |  |  | (53.3) |  |  | (20.4) |  |  | (28.8) |  |  | (2.8) |  |  | (16.4) |  |
| Other | (136.3) |  |  | (87.7) |  |  | (22.9) |  |  | (128.9) |  |  | (82.4) |  |  | (30.1) |  |
| Total deferred tax liabilities | (3,263.9) |  |  | (1,600.4) |  |  | (1,133.4) |  |  | (3,206.4) |  |  | (1,598.8) |  |  | (1,149.2) |  |
| Net deferred income tax liabilities | $ | (1,861.9) |  |  | $ | (867.9) |  |  | $ | (606.1) |  |  | $ | (1,664.8) |  |  | $ | (824.5) |  |  | $ | (558.8) |  |

Tax Credit CarryforwardsAt December 31, 2021 and 2020, Evergy had $373.6 million and $379.6 million, respectively, of federal general business income tax credit carryforwards.  At December 31, 2021 and 2020, Evergy Kansas Central had $204.7 million and $176.5 million, respectively, of federal general business income tax credit carryforwards. At December 31, 2021 and 2020, Evergy Metro had $162.1 million and $195.9 million, respectively, of federal general business income tax credit carryforwards.  The carryforwards for Evergy, Evergy Kansas Central and Evergy Metro relate primarily to wind production tax credits and advanced coal investment tax credits and expire in the years 2022 to 2041. Approximately $0.1 million of Evergy's credits are related to Low Income Housing credits that were acquired in Great Plains Energy's acquisition of Evergy Missouri West.  Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $0.1 million of the federal income tax benefit. 147
