Panelists Andrea Iturbide, associate at Clark Hill in Mexico, Mario Barrera, tax partner at Clark Hill, Taylor Amatto, associate principal with Charles River Associates in Canada, and Benjamin Torres-Barrin, partner at Baker & McKenzie Abogados in Mexico with moderator Dan Jankovic, partner at Blake, Cassels & Graydon LLP in Canada, hold a comparative discussion tax reform and tariffs challenging energy investments in Canada and Mexico.
Professor Denny Wright, who has a joint appointment at UH Law and UH’s Bauer College of Business, opens his namesake conference.
March 11, 2026 - With major federal tax changes now in place, energy investors and advisers should shift from anticipating the next rewrite to repricing transactions, validating credit eligibility, and reassessing cross-border risk, speakers said at the 8th Annual Denney L. Wright International Energy Tax Conference and 26th Annual Houston Business and Tax Law Journal Symposium hosted by the University of Houston Law Center.
The discussions reflected a broader shift in the energy sector, from reacting to policy uncertainty to adapting investment strategies within a newly established tax framework.
The change follows passage of the One Big Beautiful Bill Act (OB3), a federal tax reconciliation measure signed into law in July 2025. The law reshaped several aspects of U.S. tax policy affecting energy investment, including adjustments to international taxation rules, changes to how certain tax credits are structured and claimed, and new eligibility requirements tied to ownership and foreign influence.
Setting the tone for the day, John R. Lehrer II, partner at Baker Hostetler, told attendees that after several major tax overhauls in recent years, the market is now operating within a clearer, if more complex, framework for energy incentives.
“From an energy credit perspective…the playing field…is pretty much set,” Lehrer said, pointing to a period of relative certainty in tax law expectations for the near term.
The hybrid conference drew a record audience of more than 340 registrants, 165 in person and 175 online and featured seven panels with 28 specialists from law firms, accounting firms, energy companies, and investment organizations. The event was hosted by Denney L. Wright, UH Law Center professor of practice and the conference’s namesake, alongside Sean Phoebus, editor-in-chief, and Turab Abbas, events editor, of the Houston Business and Tax Law Journal.
Credit value remains high until eligibility fails
Across panels, speakers emphasized that incentives continue to drive energy project economics, but that eligibility is now a primary risk variable, not a box to check at the end of the process.
Kelsey Latham, senior manager at KPMG, underscored the growing impact of Prohibited Foreign Entity (PFE) restrictions, which can disqualify taxpayers based on ownership and control, even if the project itself would otherwise qualify.
“It’s affecting the eligibility of the credits,” Latham said, describing the ownership analysis as “a huge exercise” for many taxpayers.
Deal structuring: capital stacks and carryforwards under new constraints
In the domestic taxation panel, speakers highlighted renewed attention on debt-equity structure, interest expense limits, and how tax attributes may be monetized in later exits. They noted that advisers are increasingly planning for how limits and carryforwards will affect long-term value.
International planning: residency and foreign-income rules can swing outcomes
Patrick Martin, shareholder of Chamberlin Hrdlicka in San Antonio, and Professor Bret Wells, a tax policy expert and director of UHLC’s Tax Law Program, discuss highlights of the U.S. One Big Beautiful Bill Act and its impact on international taxation
On international taxation, panelists discussed how the newly enacted law changes the treatment of income earned through foreign subsidiaries of U.S. companies.
Bret Wells, the John Mixon Chair and professor of law at the University of Houston Law Center, said the legislation reshapes how profits from controlled foreign corporations are taxed.
“Under the prior law, you would only tax the excess profits of those controlled foreign corporations,” Wells said. “The 2025 Act changed that regime and requires there to be no deduction for any net tangible return. We’re simply going to apply a minimum tax outright.”
Beyond tax: tariffs, sanctions, and disputes can rewrite project risk overnight
Speakers also stressed that energy decisions are increasingly shaped by trade policy and geopolitical developments, along with the realities of dispute resolution when deals break down.
In a panel on sanctions and tariffs, Professor Julian Cardenas, director of the Center for U.S. and Mexican Law at UH Law Center, noted that global political developments continue to influence energy markets with the imposition of sanctions and tariffs impacting energy transactions.
“Energy investment decisions are increasingly shaped by geopolitical developments alongside tax policy,” Cardenas said. “Sanctions, tariffs, and diplomatic shifts can quickly change the investment environment for companies operating across borders.”
Disputes can also arise when projects face regulatory changes, shifting markets, or contractual disagreements.
In the dispute resolution panel, Ann Ryan Robertson, an independent arbitrator and UH Law Center adjunct professor, said companies should also prepare for how complex deals and financial structures will be explained if a dispute reaches arbitration or trial.
“The decision maker isn’t living in the company spreadsheets or deal documents,” Robertson said. “If your executive witness can’t explain the core story in plain language—and stay composed under pressure—the witness can lose credibility quickly, even when the underlying facts are on the company’s side.”
Panelists Bryan Schillinger, managing director of global trade at Ernst & Young, and Eric Cassidy, partner at Curtis, Mallet-Provost, Colt & Mosle LLP, flank moderator Professor Julian Cardenas, director of the Center for U.S. and Mexican Law at UH Law Center. Their discussion focused on sanctions and tariffs.
