Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 322

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 322
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155.3 $93.5 $307.6 $201.5 Realized gains$0.8 $— $1.3 $0.2 Realized losses$1.4 $8.4 $4.0 $11.9 During the three and six months ended June 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

NOTE 10.  INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See “Income Tax Audits” and “Other Tax Matters” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy.  The following are updates to that discussion.Other Tax MattersInflation Reduction Act of 2022As discussed in the Note 3 to the financial statements in the Form 10-K, the Inflation Reduction Act, signed into law on August 16, 2022, significantly expanded federal tax incentives for clean energy production, including the extension of production tax credits to solar projects and certain qualified nuclear power facilities.  Entergy Arkansas, Entergy Louisiana, and System Energy have the potential to generate zero-emission nuclear power production tax credits for electricity generated by their respective nuclear power facilities.  Due to the uncertainty of the value, if any, of credits Entergy Arkansas, Entergy Louisiana, or System Energy may receive, such credits for the nuclear power produced in 2024 were not recognized as of December 31, 2024.In second quarter 2025, Entergy, Entergy Arkansas, Entergy Louisiana, and System Energy determined, based on current analysis and evolving regulatory developments, that it was appropriate to record zero-emission nuclear power production tax credits for electricity generated in 2024 by their respective nuclear power facilities and the credits are expected to be claimed on the Entergy 2024 federal income tax return.  Because the U.S. Treasury and the IRS have not issued final guidance on the application of Internal Revenue Code section 45U, including the definition of “gross receipts,” Entergy considers the tax position associated with these credits to be uncertain