Four Minnesota-based companies are accused of paying no federal income taxes during 2025, according to a new report from the Institute on Taxation and Economic Policy.
The following companies, along with their reported income, were included on the list:
3M ($1.84 billion)Xcel Energy ($1.75 billion)Solventum ($555 million)Winnebago Industries ($22 million)
Across the country, companies like Tesla, Walt Disney, Southwest, United Airlines, and Live Nation Entertainment were on the list of those that paid $0 in federal income taxes.
Xcel Energy initially sent the following statement in response:
“We’re at the forefront of the nation’s clean energy transition, with a vision to deliver 100% carbon-free electricity our customers by 2050 (and 2040 here in Minnesota). In Minnesota, nearly 70% of the electricity we provide is already carbon-free.
“One way we have been able to make this progress is by building out wind and solar energy, which in turn allow us to make use of clean energy incentives previously authorized by Congress. These credits have helped offset the amount of current income taxes we pay. Importantly, customers are the true beneficiaries of these tax credits, as they are passed on to customers through lower-priced power. Taxes are a flow-through cost to our customers, so we have a responsibility to reduce taxes where legally permissible to keep costs low for our customers. The tax credits we use to offset our current tax liabilities does not mean that our taxes are zero — it means we are using a credit that we have earned (and passed onto our customers) to reduce the amount of taxes we pay in cash in a given year.
“With that said, it’s important to note that Xcel Energy does pay significant taxes. In fact, we are the largest property tax payer in Minnesota and Colorado — our two largest service territories. Companywide, Xcel Energy paid nearly $700 million in taxes in 2025 alone, with over $200 million of that benefitting communities in Minnesota.
“Our rate proposal supports our commitment to provide reliable, safe, clean electric service to our Minnesota customers. It supports critical investments in our grid to meet the increasing demand for electricity. We’re focused on keeping bills low for customers even when we must request an increase in rates. In 2024, residential electric bills were about 31% below the national average, and we anticipate bills will continue to stay below that average.”
Xcel then sent the following statement, further disputing the report:
“This report is inaccurate, and if you report that Xcel Energy pays no federal tax as true you will have misled the public. Tax laws and actions, including exemptions and credits, are complex and easily misinterpreted and misunderstood. The report is likely looking at our 2025 10-K filing, which lists under our current federal tax expense that we do not owe anything. This number does not take into account out-of-period adjustments from years prior to 2025. These come into play as true-ups from our 2024 financial statements that are reflected in our 2025 current federal income tax in our 2025 financial statements (a true up from our 2024 tax return was reflected in our 2025 taxes reported for 2025). In fact, when we file our 2025 federal income tax return later in 2026 we will have a tax liability of $58 million in federal taxes for 2025. We will pay this tax liability with $43.5 million using tax credits and $14.5 million in cash.”
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