Here is a look at recent tax-related happenings on the Hill, including the president announcing three projects to strengthen American national and economic security.
From the Courts
Supreme Court Rules IEEPA Tariffs Not Legal
The U.S. Supreme Court has upheld the U.S. Court of International Trade’s decision that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. Thus, the executive orders issued by President Donald Trump imposing tariffs under IEEPA are not legal. For more details, read this FORsights™ article about the ruling and listen to this special breaking news edition of “Tackling Tax.”
The majority opinion was noticeably silent on the status of IEEPA tariff refunds; however, Justice Brett Kavanaugh’s dissent noted there is a potential for substantial refunds, but those refunds would be a complex process that would have significant consequences for the U.S. Department of the Treasury. In a White House press conference hours after the decision, Trump stated that refunds would need to be litigated and it could be years before anyone sees a refund. There is still much uncertainty surrounding the path forward on IEEPA tariff refunds and will be a notable topic to monitor.
While imposing tariffs via IEEPA has been ruled not legal, the president has various other avenues he can pursue to replace the IEEPA tariffs. In the press conference on February 20, Trump stated he would sign an executive order to impose a flat 10% levy on foreign goods in the coming days, which he later raised to 15% after a “thorough, detailed, and complete review” of the court decision.1 The president also said he would order a raft of trade investigations that should allow him to enact more permanent tariffs.2
To join a moderated discussion focused on tariffs and other current tax developments affecting you and your business, please register for our “Quarterly Tax Webinar: Q1 2026” at 2 p.m. ET on February 26, 2026.
Lately on the Hill
Japan & the U.S. Trade Deal Commitments
Stemming from the $550 billion trade deal reached with Japan that was first announced in July 2025, Trump has announced three projects to strengthen American national and economic security.
The projects consist of a $33 billion natural gas power facility located in Ohio, a $2.1 billion deepwater crude export facility situated in the Gulf of America, and a $900 million synthetic industrial diamond manufacturing facility.3
The natural gas facility in Ohio would be the largest in the U.S. and could generate enough power to supply about 7.4 million homes on the largest U.S. grid;4 however, the project is still short on details. The project hasn’t yet secured binding commitments and still needs to lock in equipment suppliers and was a complete surprise to the state’s regulator and grid operator. The project would need to secure turbines and equipment and line up investors, with details on how it will be financed remaining sparse.5
U.S. & Indonesia Finalize Trade Deal
The U.S. and Indonesia finalized a landmark trade agreement that will unlock major breakthroughs for America’s manufacturing, agriculture, and digital sectors. Among the various terms included in the agreement, Indonesia will eliminate tariff barriers on more than 99% of U.S. exports and remove non-tariff barriers, including local content requirements and burdensome certification. In the following weeks, the U.S. and Indonesia will initiate the necessary domestic procedures to bring the agreement into effect.
From Treasury & the IRS
Advocacy Groups Seeking Guidance on Education Credit From IRS
Under the One Big Beautiful Bill Act's new credit for donations to private school scholarships, donors will be able to claim credits for donations to scholarship-granting organizations that typically provide financial assistance for students to attend private schools. The program will begin in 2027, states must elect to participate, and are tasked with identifying organizations whose donors would be eligible.6
Backers and skeptics of the tax credit are asking Treasury to clarify the role of states in the program, and they are also weighing in on issues such as donation oversight. Some progressive groups and public school advocates want the IRS to ensure that states will get strong oversight of scholarship-granting organizations. Meanwhile, some conservative groups and private school advocates want to prevent Treasury from encouraging states to impose regulatory hurdles that would make it harder for organizations to participate in the program.7
Released Guidance
Corporate Alternative Minimum Tax: Notice 2026-7 provides additional interim guidance regarding the application of the corporate alternative minimum tax (CAMT) under Sections 55, 56A, and 59 of the Internal Revenue Code (IRC) and modifies certain previously issued interim guidance. The notice addresses several areas in which book-to-tax differences could create unintended CAMT liability and provides adjustments to adjusted financial statement income (AFSI) to align the tax treatment more closely with regular tax principles. Read this recent FORsights article, “IRS Issues Interim Guidance on Corporate Alternative Minimum Tax,” to learn more.
Special Depreciation Allowance for Qualified Production Property: Notice 2026-16 announces the Treasury and the IRS’ intent to issue proposed regulations addressing the special depreciation allowance for qualified production property under §168(n) of the code, as amended by the One Big Beautiful Bill Act. Subscribe to FORsights™ to be notified of more details on the notice.
Corporate Bond Monthly Yield Curve: Notice 2026-14 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for January 2026 used under §417(e)(3)(D), the 24-month average segment rates applicable for February 2026, and the 30-year Treasury rates, as reflected by the application of §430(h)(2)(C)(iv).
Rate Updates: Revenue Ruling 2026-6 provides the March 2026 applicable federal rates (AFR), adjusted AFR, adjusted federal long-term rate and long-term tax-exempt rate, percentages for determining the low-income housing credit, and the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or reversionary interest.
Required Minimum Distributions From Qualified Retirement Plans and IRAs: Announcement 2026-07 provides that the IRS and Treasury anticipate that certain portions of future final regulations relating to required minimum distributions under §401(a)(9) will apply for the distribution calendar year that begins no earlier than six months after the date that final regulations are issued in the Federal Register. In the interim, the announcement states that taxpayers must apply a reasonable, good-faith interpretation of the statutory provisions underlying the regulations.
2026 Filing Season Updates and Resources for Seniors: Tax Tip 2026-14 details changes for the 2026 tax filing season that people who are 65 years of age and older should be aware of, including the enhanced deduction for seniors and other important reminders.
This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.
- 1“Donald J. Trump,” Truth Social, February 21, 2026.
- 2“Supreme Court Axes Tariffs; Trump Responds With New Rate,” bloombergtax.com, February 20, 2026.
- 3“Japan, US Reach $36 Billion of Gas, Mineral Deals in Trump Pact,” bloombergtax.com, February 18, 2026.
- 4“Japan-Built Gas Plant Touted by Trump Would Be US’s Largest,” bloombergtax.com, February 18, 2026.
- 5“Trump’s $33 Billion Ohio Gas Project Is Short on Details,” bloombergtax.com, February 20, 2026.
- 6IRC §25F.
- 7“Groups Seek Guidance on Education Credit in GOP Law: BGOV Tax,” bloombergtax.com, February 18, 2026.