v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Deferred Income Tax Assets and Liabilities
The significant components of deferred income tax assets and liabilities consisted of the following.
($ millions)2023 2022 
Gross deferred income tax assets
Regulatory liabilities636 674 
Tax loss and credit carryforwards600 658 
Employee future benefits136 161 
Other144 160 
1,516 1,653 
Valuation allowance (23)(32)
Net deferred income tax asset1,493 1,621 
Gross deferred income tax liabilities
PPE(5,355)(5,146)
Regulatory assets(372)(388)
Intangible assets(165)(147)
(5,892)(5,681)
Net deferred income tax liability(4,399)(4,060)

Income Tax Expense
($ millions)2023 2022 
Canadian
Earnings before income tax expense526 447 
Current income tax71 93 
Deferred income tax17 (41)
Total Canadian88 52 
Foreign
Earnings before income tax expense1,544 1,356 
Current income tax17 14 
Deferred income tax255 223 
Total Foreign272 237 
Income tax expense360 289 

Income tax expense differs from the amount that would be expected to be generated by applying the enacted combined Canadian federal and provincial statutory income tax rate to earnings before income tax expense.
The following is a reconciliation of consolidated statutory taxes to consolidated effective taxes.
($ millions, except as indicated)2023 2022 
Earnings before income tax expense2,070 1,803 
Combined Canadian federal and provincial statutory income tax rate (%)
30.0 30.0 
Expected federal and provincial taxes at statutory rate621 541 
Decrease resulting from:
Foreign and other statutory rate differentials(166)(162)
AFUDC(22)(18)
Effects of rate-regulated accounting:
Difference between depreciation claimed for income tax and accounting purposes(61)(74)
Items capitalized for accounting purposes but expensed for income tax purposes(16)(7)
Other4 9 
Income tax expense360 289 
Effective tax rate (%)
17.4 16.0 

Income Tax Carryforwards(1)
($ millions)
Expiring Year2023 
Canadian
Non-capital loss2028-2043130 
Foreign
Federal and state net operating loss(2)
2024-2043345 
Other tax credits2024-2043125 
470 
Total income tax carryforwards recognized600 
(1)    Income tax carryforwards presented on an after-tax basis
(2)    Indefinite carryforward for Federal net operating losses, and for states that have adopted the Federal provisions, effective for tax years beginning after December 31, 2017

The Corporation and certain of its subsidiaries are subject to taxation in Canada, the United States and other foreign jurisdictions. The material jurisdictions in which the Corporation is subject to potential income tax compliance examinations include the United States (Federal, Arizona, Kansas, Iowa, Michigan, Minnesota and New York) and Canada (Federal, British Columbia and Alberta). The Corporation's 2018 to 2023 taxation years are still open for audit in Canadian jurisdictions, and its 2019 to 2023 taxation years are still open for audit in United States jurisdictions.