Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 368

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 368
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 they could recognize a significant amount each year, beginning for 2024.  If the IRS does not issue any technical guidance before the due date of Entergy’s 2024 tax return, Entergy Arkansas, Entergy Louisiana, and System Energy will be required to 

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Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

reassess the determination of the availability of such credits based on any other additional information or regulatory requests.  If credits are recognized in future periods, the value of such credits is expected to be provided to customers.  As such, recognition of nuclear production tax credits is not expected to have a material effect on the results of operations of Entergy, Entergy Arkansas, Entergy Louisiana, or System Energy.

Entergy is not able to predict the effects of any change to or repeal of the above tax legislation, including any federal tax incentives or tax credits, on its or the Registrant Subsidiaries’ results of operations, financial position, and cash flows.

Louisiana Tax Reform

In November 2024, during the Louisiana Third Special Legislative Session of 2024, the Louisiana legislature enacted comprehensive tax reform measures, including the reduction of the corporate state income tax rate to a flat 5.5% from the current highest marginal rate of 7.5%, effective January 1, 2025.  Additional enacted measures include the repeal of the Louisiana corporate franchise tax effective January 1, 2026, and an increase in the state sales tax rate to 5%, effective January 1, 2025, until January 1, 2030, when the rate decreases to 4.75%.  Additionally, certain digital products and services, such as remotely accessed software and information services, will be subject to sales tax effective January 1, 2025.  These products and services will also be taxable at the local level.  See Note 3 to the financial statements for further discussion on the 2024 Louisiana tax reform.

Entergy Wholesale Commodities Exit from the Merchant Power Business

Entergy completed its multi-year strategy to exit the merchant nuclear power business in 2022.  See Note 13 to the financial statements for discussion of the exit from the merchant nuclear power business.

Shutdown and Sale of Palisades

In July 2018, Entergy entered into a purchase and sale agreement with Holtec International to sell to a Holtec subsidiary 100% of the equity interests in the subsidiary that owns Palisades