Southern Company SEC Q2 Tax Guidance Update Highlights Georgia Tax Cut Impact and CAMT Review

Southern Company (NYSE: SO) disclosed in its Form 10‑Q for the quarter ended June 30, 2026, filed within the past week, that the State of Georgia enacted legislation on May 11, 2026 reducing the corporate income tax rate from 5.19% to 4.99% for the 2026 tax year. This change decreased Southern Company’s state income taxes and associated deferred tax liabilities while increasing regulatory liabilities at its Georgia Power and Southern Company Gas units. The company noted this shift is not expected to materially impact its net income for the year. According to the filing, “existing state net accumulated deferred tax liabilities” were reduced as a result of the tax rate cut, with regulatory liabilities increasing in tandem. The company emphasized the effect is not anticipated to have a material impact on net income in 2026.

In the same filing, the company addressed recent guidance from the U.S. Treasury regarding the Corporate Alternative Minimum Tax (CAMT), instituted under the Inflation Reduction Act (IRA). The guidance provides that, in certain cases, repair-related tax deductions can reduce adjusted financial statement income (AFSI) for CAMT purposes. Southern Company is actively evaluating the implications of the guidance for its specific circumstances. If applicable, the ability to include repair-related deductions could reduce its CAMT exposure, thereby potentially impacting its future income tax expense and cash tax position.

These disclosures are timely regulatory and tax developments directly affecting Southern’s regulated electric and natural gas utility segments. The Georgia tax cut impacts deferred liability accounting and regulatory balances, while the CAMT guidance has potential implications for its tax planning and future cash flow structure. Investors and analysts should monitor both for their effects on future earnings and tax expense dynamics.

Southern Company’s ticker price as of October 2, 2026, was $83.72 with no change, serving as the latest verified market reference point.