v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate
The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:
Three months ended March 31,
20262025
(in millions)Amount%Amount%
Edison International:
Income from operations before income taxes$671 $1,940 
Federal statutory tax rate
$141 21.0 %$407 21.0 %
State income tax, net of federal income tax effect1
21 3.2 %109 5.6 %
Tax credits
(15)(2.2)%(5)(0.3)%
Other adjustments
Property-related(65)(9.6)%(58)(2.9)%
Corporate alternative minimum tax
18 2.7 %— — %
Other1 — %(5)(0.3)%
Effective tax rate$101 15.1 %$448 23.1 %
SCE:
Income from operations before income taxes$776 $2,089 
Federal statutory tax rate
$163 21.0 %$439 21.0 %
State income tax, net of federal income tax effect1
27 3.5 %117 5.6 %
Tax credits
(15)(1.9)%(5)(0.2)%
Other adjustments
Property-related(65)(8.4)%(58)(2.9)%
Corporate alternative minimum tax
18 2.3 %— — %
Other— — %(5)(0.2)%
Effective tax rate$128 16.5 %$488 23.3 %
1State taxes in California represents substantially all of the tax effect in this category.
The CPUC requires flow-through ratemaking. For SCE, it includes property-related adjustments, the corporate alternative minimum tax, and other temporary differences which reverse over time. These flow-through items increase or decrease SCE's current authorized revenue requirements in rate cases and give rise to regulatory assets or liabilities for deferred income taxes expected to be realized in future periods. Differences between the amounts authorized in SCE's rate cases, adjusted for balancing and memorandum account activity, and flow-through amounts recorded for financial reporting purposes also result in changes to regulatory assets, with a corresponding impact on the effective tax rate, to the extent recovery in future rates is probable. For further information, see Note 11.
The IRA imposed a corporate alternative minimum tax ("CAMT"), which Edison International and SCE are subject to beginning in 2026. Edison International and SCE expect that any CAMT paid will be creditable against future income taxes.
In addition, under the IRA, SCE expects to generate $158 million investment tax credit in future periods related to utility owned storage projects. The associated tax benefits will be recognized and returned to customers as the credits are utilized.
Tax Disputes
The tax years currently open for examination are 2022 – 2025 for the Internal Revenue Service and 2013 – 2018 and 2021 – 2025 for the Franchise Tax Board.
Income Taxes Paid
SCE makes tax-allocation payments to Edison International under the applicable tax-allocation agreement. It does not make payments to the tax authorities directly.
No income tax payments were made, or refunds were received, by Edison International or SCE during the three months ended March 31, 2026 and 2025.