Events
Jenny Speck to Speak at Lockton U.S. Energy Risk Summit
Partner Jenny Speck will speak at Lockton’s U.S. Energy Risk Summit on November 12, 2026, in Houston, Texas. The summit …
November 12, 2026
November 12, 2026 • 1-minute read
Partner Kathy Pakenham examined the growing uncertainty surrounding state tax incentives for data center developers as lawmakers across the country reconsider long-standing tax exemptions and incentive programs. She highlighted recent developments in Virginia, New Jersey, New York and other states, including new taxes on data center electricity consumption, paused incentive programs and potential repeals of tax benefits that developers have relied on when financing projects.
Pakenham also outlined steps owners and developers can take to manage incentive risk, including securing vested rights, revisiting contractual tax allocation provisions, modeling projects without incentives and engaging with regulators. She noted that incentive risk is increasing in states where program costs have exceeded projections and residential electricity prices are rising, making proactive planning essential as the policy landscape continues to evolve.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.
