Panelists Andrea Iturbide, associate at Clark Hill in Mexico, Eduardo Canales, counsel with Akin Gump Strauss Hauer & Field LLP in Houston, and Mario Barrera, tax partner at Clark Hill, discuss clean energy tax and policy issues challenging energy investments in Canada, Mexico and the U.S
March 25, 2025 – International energy and tax law experts gathered at the University of Houston Law Center to discuss the global impact of proposed tariffs, regulatory changes, and investment challenges in the energy sector. The discussions were part of the 7th Annual UHLC Denney L. Wright International Energy Tax Conference and the 25th Annual Houston Business and Tax Law Journal Symposium.
With approximately 400 attendees (in person and virtual combined) and 36 speakers across nine panels, the conference addressed pressing policy shifts, including Mexico’s evolving energy landscape, U.S. tax reform and international dispute resolution.
U.S. Tax Reform and Energy Incentives
A major highlight of the conference was the panel on the future of U.S. tax policy, particularly related to the Inflation Reduction Act of 2022. Moderator Jenny Speck of Vinson & Elkins LLP led the discussion with panelists including John R. Lehrer II of BakerHostetler, Barbara de Marigny of Baker Botts, and Ivan Thomann of bp.
Panelists Barbara de Marigny, partner at Baker Botts, John Lehrer II, partner at BakerHostetler, Jenny Speck, tax partner at Vinson & Elkins LLP and (not pictured) Ivan Thomann, senior tax counsel with bp discuss updates and expectations related to the U.S. Inflation Reduction Act.
Lehrer highlighted ongoing tax reform negotiations in Washington. “While many initially anticipated reforms in the first quarter of the year, shifting political and economic factors now suggest these changes may be delayed until the third or fourth quarter,” he said. “I think everybody feels pretty confident that there is something that is going to happen. We’re just not sure what. One other thing that’s interesting is at least in the House bill, there is a tie.”
He highlighted a key provision in the House bill, which ties tax reform funding to spending cuts. The bill allocates $4.5 trillion for tax reform, but this is contingent on finding $2 trillion in spending cuts. If only $1.5 trillion in cuts are identified, the tax reform budget would shrink to $4 trillion.
“There’s a basically a tit for tat type of decrease,” he explained. “If there’s $2 trillion of spending cuts, you get four and a half trillion. If there’s less than $2 trillion, you're going to have to reduce what's available for tax reform.”
Lehrer also warned of a looming government shutdown on March 14 due to debt ceiling disputes, which could further complicate policy changes.
De Marigny discussed the 45X advanced manufacturing production credit, noting concerns over foreign ownership of U.S.-based production facilities and indirect benefits to adversaries. “There’s no requirement that the components for the production have to come from the US. All the components could come from China, and you could still get the credit, right? There’s also no requirement that the company that is doing the production in the US be owned entirely by US interests or can’t have a significant element of foreign ownership,” she explained.
Some lawmakers are pushing to tighten regulations to prevent potential benefits to foreign adversaries.
Mexico’s Energy Policy Shifts
Another significant topic was the panel on clean energy tax policy in North America, featuring experts from Canada, Mexico, and the U.S. Eduardo Canales, counsel at Akin Gump Strauss Hauer & Feld LLP, provided key insights into Mexico’s policy changes following its national election.
“What we’ve seen in these few months after the new president took office is an aggressive move to actually enact a lot of the ideological policies that the prior administration …was not able [to] because of several constitutional and legal challenges,” Canales said.
Among the significant changes is the centralization of energy regulation under Mexico’s energy ministry, Secretaríat de Energía. Previously independent regulators overseeing power and hydrocarbons have been consolidated, marking a shift towards state control. Additionally, Mexico’s state-owned energy companies, CFE (electricity) and Pemex (oil), have been reintegrated into the government, prioritizing social justice and equal access to energy over profit, which is a reversal of the 2013 energy reforms.
Panelist Ann Ryan Robertson, counsel at Troutman Pepper Locke, Andrew Zeve, partner at White & Case, Alexander Obrecht, partner at BakerHostetler, Gary McGowan of McGowan Arbitration and Dispute Resolution with moderator Andrew Wright, partner at Buck Keenan LLP discuss energy dispute resolution.
Energy Dispute Resolution
A mid-afternoon panel, moderated by Andrew Wright of Buck Keenan LLP, addressed legal challenges in energy investments. Panelists stressed the importance of clearly defined dispute resolution clauses in contracts. Gary McGowan of McGowan Arbitration and Dispute Resolution explained potential avenues to resolve disputes.
“There are of course two accepted widely accepted forms of alternative dispute resolution today, mediation and arbitration,” he said. “Mediation is an adjunct to litigation. It’s not an alternative to litigation.”
The conference, approved for 8.5 hours of Texas MCLE credit, provided critical insights into shifting global energy policies and tax regulations.
For more information about the University of Houston Law Center, visit https://www.law.uh.edu/
