Company: AILIM
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001002910-25-000055
Chunk: 304

Company: Ameren Illinois Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 304
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 of operations•Estimates of the amount and character of future taxable income and forecasted use of our tax credit carryforwards•Enacted tax rates applicable to taxable income in years in which temporary differences are recovered or settled•Effectiveness of implementing tax planning strategies•Changes in income tax laws, including amounts subject to income tax, and the regulatory treatment of any tax reform changes•Results of audits and examinations by taxing authorities•Ability to forecast production and investment tax credits

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Table of Contents

Basis for Judgment

The reporting of tax-related assets and liabilities requires the use of estimates and significant management judgment. Deferred tax assets and liabilities are recorded to represent future effects on income taxes for temporary differences between the basis of assets for financial reporting and tax purposes. Although management believes that current estimates for deferred tax assets and liabilities are reasonable, actual results could differ from these estimates for a variety of reasons, including: a change in forecasted financial condition and/or results of operations; changes in income tax laws, enacted tax rates or amounts subject to income tax; the form, structure, and timing of asset or stock sales or dispositions; changes in the regulatory treatment of any tax reform benefits; and changes resulting from audits and examinations by taxing authorities. Valuation allowances against deferred tax assets are recorded when management concludes it is more likely than not such asset will not be realized in future periods. Accounting for income taxes also requires that only tax benefits for positions taken, or expected to be taken on tax returns that meet the more-likely-than-not recognition threshold can be recognized or continue to be recognized. Management evaluates each position solely on the technical merits and facts and circumstances of the position, assuming that the position will be examined by a taxing authority that has full knowledge of all relevant information. Significant judgment is required to determine recognition thresholds and the related amount of tax benefits to be recognized. At each period end, and as new developments occur, management reevaluates its tax positions. Additional interpretations, regulations, amendments, or technical corrections related to the federal income tax code as a result of the IRA, may impact the estimates for income taxes discussed above. See Note 12 – Income Taxes under Part II, Item 8, of this report for additional information on the IRA and the amount of deferred income taxes recorded at December 31, 2024.

Accounting EstimateUncertainties Affecting ApplicationAccounting for Asset Retirement ObligationsWe record the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets. See Note 1