Essential Utilities WTRG Expected Tax Benefit From Accounting Method Change
Expected Tax Benefit From Accounting Method Change at other companies
Other financials
Where this comes from
Reported directly by Essential Utilities in its filing.
Tagged under the XBRL concept wtrg:ExpectedTaxBenefitFromAccountingMethodChange.
The source filing: Essential Utilities’s 10-K, filed February 26, 2026.
- Filed
- Feb 26, 2026, 3:16 PM EST
- Fiscal year
- FY2025
- Accession
- 0000078128-26-000050
In April 2023, the Internal Revenue Service issued Revenue Procedure 2023-15 which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. In the second quarter of 2023, based on the tax legislative guidance that was issued, the Company reevaluated the uncertain tax positions related to the Regulated Water segment and reclassified a portion of its historical income tax reserves as a regulatory liability until accounting treatment is determined in its next base rate case. In the first quarter of 2025, based on the rate order received by Aqua Pennsylvania, the Company released $22,575 of income tax reserve regulatory liability, while the remaining the tax benefit of $4,874 will be refunded to customers through base rates over a two-year period.
Item 8. Financial Statements and Supplementary Data
FAQ
- What is Essential Utilities's expected tax benefit from accounting method change?
- Essential Utilities (WTRG) reported expected tax benefit from accounting method change of $1.22M in Q4 2025.
- How has Essential Utilities's expected tax benefit from accounting method change changed year-over-year?
- Essential Utilities's expected tax benefit from accounting method change decreased by 0.0% year-over-year, from $1.22M to $1.22M.
- What does expected tax benefit from accounting method change mean?
- The projected tax savings resulting from a change in accounting methods for tax purposes, such as depreciation or revenue recognition. This reflects the impact of aligning tax reporting with specific regulatory or legislative provisions.
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