Federal

Tax Credit Repeal Would Deflate US Hydrogen Development

Keith Goldberg

The Republicans' proposal to eliminate tax credits for producing clean hydrogen in the budget reconciliation bill threatens to kneecap the nascent alternative fuel industry in the U.S. while pushing investments overseas to friendlier markets.

The Tax Angle: Year-End Extenders, IRS Direct File

Stephen K. Cooper
Editor-at-Large

From a look at the possibility of Congress passing a year-end budget and tax extenders bill to efforts to keep the IRS Direct File program afloat, here's a peek into a reporter's notebook on a few of the week's developing tax stories.

House Tax Bill's Foreign Rules May Finish Off Energy Perks

Kat Lucero

House Republicans' mammoth tax bill proposes phasing out two popular clean electricity business tax credits, but additional restrictions on eligible development projects' foreign business ties could have the same effect as immediately repealing them.

Ch. 7 Marshaling Ruling Rests On Shaky Legal Grounds

In its recent holding in a Chapter 7 bankruptcy case that marshaling may not be applied against the IRS, a Texas federal court misapplied a bankruptcy code section and case law, leaving a draconian decision that could limit the scope of a powerful equitable estate tool, says Brian Shaw at Cozen O'Connor.

3 Tax Issues Manufacturers Should Watch In 2025 Budget Bill

As Congress works toward a budget reconciliation bill, manufacturing companies should keep a keen eye on proposals to change bonus depreciation, the qualified business income deduction and energy tax credits, which could have a significant impact on capital-intensive industries, say attorneys at Frost Brown Todd.

$38M Law Firm Settlement Highlights 'Unworthy Client' Perils

A recent settlement of claims against law firm Eckert Seamans for allegedly abetting a Ponzi scheme underscores the continuing threat of clients who seek to exploit their lawyers in perpetrating fraud, and the critical importance of preemptive measures to avoid these clients, say attorneys at Lockton Companies.

Jurisdictional Issues At Play In 9th Circ.'s FCA Trade Case

A decision by the Ninth Circuit in Island Industries v. Sigma Corp. could result in the U.S. Court of International Trade’s exclusive jurisdiction over trade-related FCA cases, a big shift in the enforcement landscape just as tariffs take center stage in trade policy, say attorneys at Haynes Boone.

Evolving Federal Rules Pose Further Obstacles To NY LLC Act

Following the Financial Crimes Enforcement Network's recent changes to beneficial ownership information reporting under the federal Corporate Transparency Act — dramatically reducing the number of companies required to make disclosures — the utility of New York's LLC Transparency Act becomes less apparent, say attorneys at Pillsbury.

Alternative Business Structures Raise Ethics Questions

The new KPMG law firm, launched in Arizona following that state's repeal of the prohibition on fee sharing with nonlawyers, raises a number of important practice questions, both for the firm and those law firms seeking to partner with it, says Deborah Winokur at Cozen O’Connor.

The IRS Shouldn't Go To War Over Harvard's Tax Exemption

If the Internal Revenue Service revokes Harvard's tax-exempt status for violating established public policy — a position unsupported by currently available information — the precedent set by surviving the inevitable court challenge could undercut the autonomy and distinctiveness of the charitable sector, says Johnny Rex Buckles at Houston Law Center.

Mitigating Import Risks Around Southeast Asian Solar Cells

The U.S. Department of Commerce's recent final determinations in its antidumping and countervailing duty investigations into solar cells produced in certain Southeast Asian countries make it important for U.S. purchasers to consider risk mitigation strategies, including modifying supply chains and contractually assigning import responsibilities, say attorneys at Morgan Lewis.

Reassessing Corporate Separateness After Explosion Of LLCs

Following the dramatic increase of limited liability companies in the U.S., the Corporate Transparency Act's enactment and the Trump administration's subsequent narrowing of that law, it's worth revisiting the underlying legal principles that govern shell companies in order to remedy the problems that initially motivated the CTA, says Jeff Newton at Omni Bridgeway.

Crisis Management Lessons From The Parenting Playbook

The parenting skills we use to help our kids through challenges — like rehearsing for stressful situations, modeling confidence and taking time to reset our emotions — can also teach us the fundamentals of leading clients through a corporate crisis, say Deborah Solmor at the Wisconsin Alumni Research Foundation and Cara Peterman at Alston & Bird.

Immunity Waiver Ruling A Setback For Ch. 7 Trustees

While governmental units should welcome the U.S. Supreme Court's recent decision in U.S. v. Miller restricting the reach of the Bankruptcy Code's sovereign immunity waiver, Chapter 7 trustees now have a limited ability to maximize bankruptcy estates, says Dan Prieto at Jones Day.

Adapting To Private Practice: From NY Fed To BigLaw

While the move to private practice brings a learning curve, it also brings chances to learn new skills and grow your network, requiring a clear understanding of how your skills can complement and contribute to a firm's existing practice, and where you can add new value, says Meghann Donahue at Covington.

Top 3 Litigation Finance Deal-Killers, And How To Avoid Them

Like all transactions, litigation finance deals can sometimes collapse, but understanding the most common reasons for failure, including a lack of trust or a misunderstanding of deal terms, can help both parties avoid problems, say Rebecca Berrebi at Avenue 33 and Boris Ziser at Schulte Roth.