Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 164

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 164
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 Consolidated Financial Statements (20)Income taxes Income tax expense (benefit) is reconciled to hypothetical amounts computed at the U.S. federal statutory rate for each of the three years ending December 31, 2024 in the table below (dollars in millions).  

        2024

        2023

        2022

        Earnings (loss) before income taxes
         
        $
        110,376

        $
        120,166

        $
        (30,500
        )

        Hypothetical income tax expense (benefit) at the U.S. federal statutory rate
         
        $
        23,179

        $
        25,235

        $
        (6,405
        )

        Dividends received deduction

        (491
        )

        (678
        )

        (512
        )

        State income taxes, less U.S. federal income tax effect

        606

        603

        602

        U.S. income tax credits*

        (2,575
        )

        (2,186
        )

        (2,187
        )

        Other differences, net

        96

        45

        —

        $
        20,815

        $
        23,019

        $
        (8,502
        )

        Effective income tax rate

        18.9
        %

        19.2
        %

        27.9
        %
       
       * U.S. income tax credits derive primarily from production tax credits associated with wind-energy generation of BHE and tax credits arising from affordable housing investments. We file income tax returns in the U.S. and in state, local and foreign jurisdictions. We have settled income tax liabilities with the U.S. federal taxing authority (“IRS”) for tax years through 2013, and the IRS is currently auditing tax years 2014 through 2019. We are also under audit or subject to audit with respect to income taxes in various state and foreign jurisdictions. It is reasonably possible that certain of these income tax examinations will be settled in 2025. We currently do not believe that the outcome of unresolved issues or claims will be material to our Consolidated Financial Statements. At December 31, 2024 and 2023, net unrecognized tax benefits were $501 million and $480 million, respectively. Included in the balance at December 31, 2024, were $