Alerts

A key element of New York’s data center moratorium was a direction to Empire State Development (“ESD”) to craft a Community Investment Framework (“CIF”) under which data center host communities would be compensated. Public feedback on the Framework can be submitted to ESD by Thursday, August 13, 2026.

As early as June 2020, our “Borrower Beware” alerts began warning borrowers about the risks associated with false certifications on Paycheck Protection Program (“PPP”) loan applications and potential after-the-fact government scrutiny of such loans under the False Claims Act, which is often spurred by whistleblowers.

New York courts have long recognized that public utility infrastructure must be considered under different variance standards given that regional and state needs for such infrastructure outweigh purely local considerations.  Under the Public Utility Variance (“PUV”) standard that the New York Court of Appeals established in Matter of Consolidated Edison Co. of N.Y. v. Hoffman, 43 N.Y.2d 598 (1978), where a proposed facility demonstrates that it is a public necessity required to render safe and adequate service, that there are compelling reasons, economic or otherwise, which make it more feasible to construct the project where proposed than an alternative, and where the intrusion or burden on the community is minimal, the required showing is correspondingly reduced.  See generally Hoffman.  See also our earlier alert on the PUV standard.

In a move with significant implications for data center developers and potential host communities throughout New York, Governor Kathy Hochul has signed Executive Order No. 62, temporarily pausing certain state environmental approvals for large-scale data center projects while state agencies evaluate the industry's environmental, energy, and infrastructure impacts. This makes New York the first state in the country with a statewide data center permitting moratorium. The Order applies to data centers that consume 50 megawatts (“MW”) of energy or more and comes just one month after a similar moratorium was passed by the State Legislature.

New York’s proposed Minority and Women-owned Business Enterprise (“MWBE”) amendments affect certification requirements, expand “commercially useful function” (“CUF”), and impact utilization credits. This alert summarizes the MWBE amendments’ practical implications.

Senator Baskin, the primary sponsor, shared with Hodgson Russ that the amendments will ensure “no more pausing people's MWBE status while they are under review for recertification compliance.”

Following up on our June 16 alert, “New York Piggybacking Provision Extension Advances to Governor’s Desk,” the piggybacking extension advanced by Legislative Bill S.10075-A/A.11162-A has officially been signed into law by Governor Hochul as of June 29, 2026. The new law ensures that piggybacking will remain a permissible alternative to the public bidding process for another year. This latest extension will expire on June 30, 2027.

Decisions from the United States Supreme Court related to Title 11 of the United States Code (the “Bankruptcy Code”) are not abundant by any means. As courts throughout the country have noted, “[b]ankruptcy is a specialized area of the law.” Because “[b]ankruptcy courts are specialized courts,” it is not beyond reason that great deference is given to their decisions and interpretations of the Bankruptcy Code; thus obviating frequent resort to review by America’s highest court. Notwithstanding, the historical landscape of bankruptcy law is pockmarked with landmark decisions of the Supreme Court that, among other things, settle circuit splits or define the outer limits of a bankruptcy court’s jurisdiction and authority.

On May 13, 2026, the Centers for Medicare & Medicaid Services (CMS) issued a nationwide moratorium on Home Health Agencies and Hospices enrolled in the Medicare program. This moratorium is substantially similar to CMS’s recent nationwide moratorium that went into effect on February 27, 2026, regarding new Medicare enrollments for Durable Medical Equipment suppliers (“DME Suppliers”). According to CMS, both moratoria were implemented to curtail fraud, waste, and abuse in the Medicare program among these providers and suppliers (collectively, “Providers”).

New York’s General Municipal Law § 103(16) currently permits various New York State agencies, municipalities, political subdivisions, and districts to engage in “piggybacking” as an alternative and more efficient method of procurement compared to the traditional public bidding process. When the State Legislature initially passed the amendment to the General Municipal Law to permit piggybacking, the change was not a permanent one. The Legislature included a sunset provision to repeal the piggybacking clauses after being in effect for five years. Since then, municipalities, school districts, and other government agencies have acknowledged the positive impact that piggybacking has had on project efficiency and cost control, and the State Legislature to this point has worked to keep the law in effect. The initial repeal date has been amended several times, and the current extension is set to expire on June 30, 2026. Legislative Bills S.10075-A/A.11162-A aim to extend the piggybacking provision of the General Municipal Law for an additional year, to June 30, 2027. Among other things, the bill summary recites that “Piggybacking has been proven to reduce the administrative costs and burdens for localities and the costs related to goods and services; resulting in savings to the governmental entities that utilize cooperative purchasing.” The Bill recently passed both chambers of the Legislature and currently awaits Governor Hochul’s pen

New York's 2026-27 Budget Bill (the “Budget Bill”) amends the Tax Law and various other statutes through a series of Parts (here, A through JJ). The Budget Bill touches a range of personal and business tax provisions, extends several expiring credits and temporary rate increases, introduces new compliance and enforcement mechanisms, and adds a significant new levy on certain New York City real property – the “Pied-à-terre Tax.”

New York’s General Municipal Law § 103(1) generally requires that all contracts for public works over $35,000, and all purchase contracts worth more than $20,000, are subject to the competitive bidding process, and such contracts must either be awarded to the lowest responsible bidder or on the basis of best value. In 2012, the statute was amended to authorize the state, municipalities, political subdivisions, and districts to engage in a new method of procurement—often referred to as “piggybacking”—without engaging in traditional public bidding. “Piggybacking” is a process by which one governmental entity is permitted to purchase or procure the same goods and services at the same contractual pricing, terms, and conditions as another government entity, the latter of which has already competitively bid the contract. Proper use of piggybacking can potentially result in significant savings and efficiencies, and by extension, benefit the public taxpayers by streamlining the process, reducing administrative costs, and providing access to a broader vendor pool than having each government entity conduct its own individualized and localized public bidding for the same type of procurement.

On Friday, May 22, 2026, USCIS issued a new policy memo on Adjustments of Status (the process whereby a temporary work visa holder becomes a green card holder in the U.S.). 

Significant revisions incorporating environmental justice and housing considerations represent the most consequential reshaping of SEQRA in years.

The deadline for DEC to appeal the Albany County Supreme Court’s decision has now passed without DEC filing a notice of appeal. As a result, the Court’s annulment of the new Part 664 regulations remains in effect. Although the underlying 2022 amendments to the Freshwater Wetlands Act remain valid, the implementing regulations adopted by DEC effective January 1, 2025, are no longer operative.

Albany County Supreme Court finds DEC failed to comply with SEQRA in adopting new wetlands rules

In a decision with significant consequences for landowners, developers, and municipalities throughout New York State, the Albany County Supreme Court has annulled in their entirety the New York State Department of Environmental Conservation (“DEC’s”) recently promulgated Part 664 freshwater wetlands regulations, holding that the DEC failed to satisfy its obligations under the State Environmental Quality Review Act (“SEQRA”).

On February 13, 2026, Governor Hochul signed an amendment to New York’s “Trapped at Work Act.” Employers should review their policies and agreements to ensure compliance prior to the new effective date.

There has been an increasing number of new businesses in New York offering various cosmetology services, including Botox, fillers, and other cosmetic injectable services. These businesses are informally referred to within the cosmetics industry as “medical spas” or more formally referred to by the New York Department of State (“NYDOS”) as “appearance enhancement businesses.” Coincidentally, consumers have also filed numerous complaints regarding these businesses to various government agencies over the past few years. This led to government-initiated inspections of over 200 “appearance enhancement businesses” last year. In January 2026, the NYDOS’s Division of Licensing and Consumer Protection (“Division of Licensing”) issued a Warning to notify consumers about the investigation results and the potential harms related to these types of businesses. This Warning also has important implications for the healthcare industry and healthcare professionals, as summarized below.

By April 30th, owners of single electric-generating facilities or multiple electric-generating facilities located on the same New York site with a nameplate capacity of one megawatt or greater must file an Annual Report, formally known as Form RP-575, with the State Department of Taxation and Finance Office of Real Property Tax Services (“ORPTS”). This requirement, enacted in 2020 by Real Property Tax Law (“RPTL”) § 575-a, was designed to provide confidential information that ORPTS could use to inform the RPTL § 575-b tax assessment model.

New York State has some of the most complex and unforgiving deadlines for election-related submissions. Missing a deadline, even by a single day, can result in removal from the ballot, disqualification of an entire petition, objections being rejected, and possible other consequences under the law, including financial penalties. With the current election cycle underway, candidates, party committees, and their counsel must act now to comply with these deadlines and achieve critical milestones during the election calendar. 

After several years and iterations of the solar and wind assessment model under Real Property Tax Law (“RPTL”) § 575-b, the New York State Department of Taxation and Finance’s 2026 draft assessment model (the “2026 Draft Model”) includes a new category for solar + storage. While some in the solar industry sought to include solar + storage in the assessment model to bring further uniformity and predictability for solar + storage projects, this addition raises a question about whether including hybrid solar + storage projects is consistent with RPTL § 575-b. As discussed below, RPTL § 575-b refers to the definition of solar or wind energy systems in RPTL § 487, and this definition includes energy storage devices. Thus, the inclusion of solar + storage is consistent with the statutory framework. It remains to be seen whether the 2026 Draft Model, if finalized to include solar + storage, will be challenged on this ground or any others. We will separately report on the updates to the 2026 Draft Model as it concerns discount rates, use, and functionality. 

The New York State Department of Taxation and Finance (“DOTF”) released the draft 2026 solar and wind valuation model and updated discount rates (the “Draft 2026 Model”) for public review and comment. Under Real Property Tax Law § 575-b, these discounted cash flow models are mandatory for local assessment of wind and solar energy systems over 1 megawatt AC. 

Last week, the Appellate Division, Third Department reaffirmed and further limited the application of New York’s Green Amendment. This follows the Appellate Division, Fourth Department’s decision last year in Fresh Air for the Eastside, Inc. v. State of New York , which held that the state constitutional amendment does not create a private right of action against private actors. In Fresh Air for the Eastside, the Fourth Department also rejected arguments that the Amendment altered the longstanding rule that mandamus does not lie to compel an enforcement agency to pursue alleged violators, except in rare circumstances. The Third Department rejected the argument that the Green Amendment compelled the State to revoke an industrial facility’s permits and affirmed the lower court’s holding that the Green Amendment did not create a cause of action to compel enforcement action by the State.

Hodgson Russ State & Local Tax Partner Craig Reilly recently secured a favorable declaratory judgment ruling on behalf of a group of licensed site safety service providers operating in accordance with the New York City Building Code. The declaratory judgment ruling by the Albany Supreme Court confirmed that section 1105 of the New York State Tax Law is wholly inapplicable to these licensed site safety services, which involve coordinators or managers who monitor construction sites in New York City and advise contractors on whether they are complying with the New York City Building Code.

The U.S. Department of Agriculture (USDA) has launched a new online portal to streamline reporting of foreign ownership interests in U.S. agricultural land under the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA).

After years of delays in implementation, New York State recently opened registration for the Secure Choice Savings Program (“SCSP”), which creates new retirement savings requirements for certain employers with New York employees. Despite the rollout of official guidance, some questions remain concerning how the program will operate.

Beginning March 18, 2026, directors and officers of foreign private issuers, or FPIs, must report their beneficial ownership of, and their transactions involving, an FPI’s securities under Section 16(a) of the Securities Exchange Act of 1934, as amended. The Holding Foreign Insiders Accountable Act, as part of the National Defense Authorization Act, became law on December 18, 2025.

The U.S. Department of Agriculture has issued an advance notice of proposed rulemaking, seeking public comments to clarify the filing requirements under the Agricultural Foreign Investment Disclosure Improvements Act (AFIDA).

On December 8, 2025, the New York City Department of Buildings issued Buildings Bulletin 2025-014, providing long-awaited clarification on how battery energy storage systems, including retail and off-site systems, may generate greenhouse gas emissions deductions for Covered Buildings under Local Law 97.

For renewable energy project developers with projects in New York City, January 5 is an especially important date because it is the City’s “Taxable Status Date” (unlike many towns that operate under a March 1 deadline).  This deadline controls when developers must submit their tax exemption application (RP-487) to obtain the benefit of New York’s renewable energy facility tax exemption under Real Property Tax Law (“RPTL”) § 487.  Although state law (RPTL § 302(1)) sets March 1 as the taxable status date, New York City Charter § 1507 overrides that provision and sets January 5 as the taxable status date.

A mandatory real property tax exemption in New York is provided by Real Property Law § 420-a(1)(a) for property meeting a two-prong test: first, if owned by an organization formed for “religious, charitable, hospital, educational, or moral or mental improvement of men, women or children purposes,” and second, if used exclusively for carrying out such purposes. 

New York Governor Kathy Hochul signed legislation resolving the latest attack on the solar and wind real property tax assessment model.  The legislation, Senate Bill S.8012 (Assembly Bill A.8332) (the “Legislation”), is in direct response to the Airey, et al. v. State of New York, et al., Index No. 903991-24, case in Albany County Supreme Court (the “Challenge”).  The Court in Airey held the assessment model under Real Property Tax Law (“RPTL”) § 575-b (the “Model”) unconstitutional (the “Decision”).  We previously reported on the Decision in our alert on March 5, 2025.

Solar projects are governed by the Public Utility Variance (“PUV”) standard that the New York Court of Appeals announced in Matter of Consolidated Edison Co. of N.Y. v. Hoffman, 43 N.Y.2d 598 (1978). Under this test, where a proposed facility demonstrates that it is a public necessity required to render safe and adequate service, that there are compelling reasons, economic or otherwise, which make it more feasible to construct the project where proposed than an alternative, and where the intrusion or burden on the community is minimal, the required showing is correspondingly reduced.

On November 7, 2025, the New York State Department of Environmental Conservation (“DEC” or the “Department”) issued a Water-Quality Certification under the Clean Water Act, along with related permits, for the Northeast Supply Enhancement (“NESE”) natural gas pipeline proposal. This decision marks a potential sea change in New York’s energy infrastructure permitting landscape – one that may signal a longer horizon for the State’s transition to a carbon-free energy future, as embodied in the Climate Leadership and Community Protection Act ("CLCPA"). 

On October 22, 2025, the New York State Office of Renewable Energy Siting and Electric Transmission (ORES) issued a revised set of proposed regulations implementing the Renewable Action Through Project Interconnection and Deployment (RAPID) Act, which consolidated the State’s renewable energy and electric transmission siting processes under a new Article VIII of the Public Service Law (PSL).

The New York City Department of Buildings (DOB) has finalized two significant new rules regulating the design, installation, operation, and decommissioning of energy storage systems (ESS) throughout the city. These rules, effective October 26, 2025, mark the first time the DOB has directly addressed indoor ESS installations and expand regulatory oversight beyond existing FDNY requirements.

In a significant development for climate policy in New York, the Albany County Supreme Court has ordered the state’s Department of Environmental Conservation (DEC) to promulgate long-delayed regulations required under the Climate Leadership and Community Protection Act (CLCPA).

Starting in October 2025, the New Jersey Division of Taxation is offering business taxpayers a new option for resolving audit disputes.  Beginning October 1, 2025, and running through September 30, 2027, the Division is testing a pilot mediation program.  The Division has issued a technical bulletin and FAQ page explaining how the mediation program is intended to work.

On September 19, 2025, President Trump issued a proclamation restricting the entry of certain H-1B nonimmigrant workers, requiring a $100,000 payment to accompany or supplement H-1B petitions for new applications.