Client Alert: CCS Project Suspension

Texas Governor Greg Abbott has directed state regulators to conduct a comprehensive audit of data center projects seeking grid access, while ERCOT has paused its Batch Zero interconnection process. This regulatory shift introduces immediate uncertainty for developers regarding timelines, financing, and project approvals, signaling that political engagement has become as critical as securing land and power in the Texas data center market.

The Department of Energy has launched a rulemaking process to implement new restrictions on foreign-sourced bulk-power system equipment, seeking industry input on critical issues ranging from equipment scope...

The U.S. Department of Energy is seeking public input on implementing Executive Order 14421, which grants sweeping authority to restrict foreign-produced electric equipment in the nation's bulk-power system. With broad implications for utilities, manufacturers, and energy infrastructure projects, stakeholders have until October 9, 2026, to shape regulations that could fundamentally alter supply chains and equipment procurement across the electric grid.

California Governor Newsom signed seven data center bills into law on September 21, 2026, establishing a comprehensive regulatory framework that takes effect January 1, 2027. These bills create new tariff regimes administered by the California Public Utilities Commission, impose extensive reporting requirements on data center operators, and establish water disclosure mandates and CEQA treatment protocols.

The Act restores the ITC eligibility of qualified fuel cell property that begins construction after 2025. Under the IRA, qualified fuel cell property was required to have begun construction prior to 2025 in order to be eligible for the ITC.

On December 18, 2015, President Obama signed legislation into law that repeals the 40-year-old U.S. ban on crude oil exports.

Massachusetts Governor Maura Healey has issued Executive Order 658, establishing comprehensive permitting and regulatory standards for data centers exceeding 25 MW of peak electricity demand. The Order mandates community benefits agreements, clean energy procurement protocols, and coordination across multiple state agencies to ensure responsible development that protects ratepayers, communities, and the environment. This action positions Massachusetts alongside other states implementing stricter oversight o

California has enacted the nation's most comprehensive data center legislation, fundamentally reshaping how electricity costs, grid upgrades, and energy reporting obligations are allocated. The new laws require data centers to bear full transmission upgrade costs, comply with clean energy procurement mandates, and submit detailed operational disclosures to state regulators.

President Trump's Executive Order 14421 declares a national emergency to secure the U.S. bulk-power system, imposing new restrictions on foreign-produced electric equipment that poses national security risks. The order prohibits certain imports and installations while directing the Department of Energy to identify and potentially replace existing vulnerable equipment already on the grid.

As U.S. utilities commit record capital to grid expansion, equipment procurement has emerged as a critical constraint. Lead times for transformers now stretch beyond two years, while material scarcity, inflation, and labor shortages compound delays across conductor, switchgear, and substation components.

The Second Circuit has affirmed the Tax Court’s rulings against Soroban Capital Partners LP, holding that the firm’s three principals were not “limited partners” for purposes of the self-employment tax exclusion found in I.R.C. § 1402(a)(13), despite formally holding limited partner status under Delaware law. Under the Internal Revenue Code, a partner’s distributive share of partnership income is generally treated as self-employment income subject to the 15.3 percent self-employment tax on income up to $184,500 in 2026 (2.9 percent rate above that threshold), which funds Social Security and Medicare. Section 1402(a)(13), however, excludes from that tax the distributive share of a “limited partner, as such,” other than guaranteed payments for services rendered.

The Investment Company Institute, the trade association representing more than $45 trillion in assets across mutual funds, ETFs, and other fund structures, has filed a comment letter with the United States Treasury...

The Internal Revenue Service ("IRS") announced a new electronic filing platform for Form 15620 to make an election pursuant to Section 83(b) of the Tax Code.

The City of New Orleans Department of Finance has launched a Sales Tax Amnesty Program offering businesses a limited-time opportunity to settle overdue sales tax obligations with significant penalty relief. Through December 31, 2026, qualifying taxpayers can resolve delinquent balances for sales taxes, use taxes, hotel/motel taxes, and other municipal taxes while having all penalties, negligence fees, and half of accrued interest waived.

The Treasury Department and IRS issued final regulations implementing the new deduction for qualified passenger vehicle loan interest (QPVLI), a temporary benefit created by the One, Big, Beautiful Bill Act (OBBBA) that allows individuals to deduct up to $10,000 of interest paid on certain auto loans, even if they do not itemize deductions. The final rules largely adopt the proposed regulations issued in January 2026 but include clarifications in response to public comments received by the Treasury Department.

The United States Tax Court recently issued a reminder that tax sophistication can support a finding of civil fraud. In Janangelo v. Commissioner, T.C. Summary Opinion 2026-8, the court found that a longtime IRS revenue agent, who is also a licensed attorney and CPA, committed civil fraud by claiming a series of fabricated and unsubstantiated deductions across four consecutive tax years.

The Maritime Administration (MARAD) has published a notice of proposed rulemaking that would substantially revise the regulations governing the Capital Construction Fund (CCF) Program, found at 46 CFR Part 390. Published in the Federal Register on September 22, 2026, this is the first comprehensive update to the CCF regulations since MARAD first introduced them in 1976.

On September 10, in Monahan v. City of New Orleans, No. 2025-CA-0757, the Louisiana Fourth Circuit Court of Appeal affirmed a district court judgment compelling the City of New Orleans to pay an $8,284,084.51 tax refund judgment through a writ of mandamus, rejecting the City’s argument that payment remained discretionary absent a specific legislative appropriation.

The Internal Revenue Service recently issued Revenue Procedure 2026-6, which provides procedural guidance allowing States to make an Advance Election to participate...

The Treasury Department and IRS issued proposed regulations providing guidance on the new Federal Scholarship Tax Credit, effective in 2027. The credit is designed to encourage contributions to scholarship granting organizations (“SGOs”) that provide financial assistance for eligible K-12 students.