Todd M. Thacker Explores Green Incentives Across United States and European Union in Law360
Todd M. Thacker, partner in Goldberg Segalla’s Toxic Tort and Environmental Law groups, explored in an article with Law360 the contention over incentives in the United States and European Union for green businesses, such as renewable energy companies or electric-car manufacturers.
“Companies in the clean-energy sector have a lot to think about these days when it comes to finding the best location for investment,” Todd said. This is due in part to the U.S. Inflation Reduction Act (IRA) which provides tax breaks for green companies, but the EU is also considering measures to ease subsidy rules and provide funds to incentivize green companies to locate in member countries.
With some multinational businesses beginning to shift business to the United States for IRA benefits, and EU looking into their own incentives, there is a concern of a subsidy war. Both the United States and EU have recognized this, and conversations have started to develop an agreement that some may theorize could operate as a free-trade agreement for the EU.
Todd also advised on what green or clean-energy businesses should do regarding the location of investments for future green projects and developments.
“If companies have an option to delay relevant investments for the time being, adopting a wait-and-see approach could allow them to take full advantage of any subsidy program the EU crafts — or at least make their investment with a full appreciation of the relevant opportunities,” Todd said.
However, if a company must take immediate action and the “investment falls within the IRA’s incentive structure, there seems to be only one rational place for that company to make the investment — the United States.”
READ THE FULL ARTLICE:
“Cos. May Want to Wait Out US-EU Green Incentives Fight,” Law360, March 13, 2023 [Subscription Required]
MORE ABOUT GOLDBERG SEGALLA’S TODD M. THACKER:
Todd M. Thacker is an experienced litigator who represents clients in toxic tort, asbestos litigation, insurance coverage, and business and commercial matters. The California State Bar has certified him as an appellate specialist. Todd has directed and drafted numerous appeals and writs in California, both as an appellate and a respondent. He has appeared before the First, Second, Fourth, and Fifth District Courts of Appeal in California and federally before the Ninth Circuit. Todd also devotes a portion of his time to dispositive and other complex motion practice. He has litigated corporate, insurance coverage, and contract disputes, working with public and private companies, partnerships, corporations, and individuals. His courtroom experience also includes leading the defense for clients involved in federal multi-district legislation.