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On 9 March 2024, the Biden Administration released its proposed budget for fiscal year 2025, and the Treasury Department released its General Explanations of the Administration’s Fiscal Year 2025 Budget Proposals, commonly known as the “Greenbook.” Many of the proposals in this year’s Greenbook appeared in earlier years, but a few proposals are new or modified. Due to the divided Congress and competing political priorities during a general election year, there is little chance that any of the Greenbook proposals will be passed into law in 2024. However, the Greenbook illustrates the consistency of the President’s tax policy objectives during his first term and maps out priorities for a possible second term.

On 5 March 2024, Treasury and the IRS published Treas. Reg. § 1.48D-6 (“Final Regulations”), which implements the section 48D(d) election allowing eligible taxpayers to treat the amount of the advanced manufacturing investment credit (“CHIPs Credit”) established under the Creating Helpful Incentives to Produce Semiconductors Act of 2022 as a payment against Federal income tax liabilities, i.e., a “direct pay election” For eligible taxpayers seeking to treat the CHIPs Credit allowed in any tax year as a payment against Federal income tax liabilities in lieu of claiming the credit, the Final Regulations generally retain the structure and framework for administering the election laid out in proposed and temporary regulations, with welcome modifications to clarify key issues relating to the limitations for making the elective payments, the ‘denial of double benefits’ rule, and the election’s pre-filing requirements.

Two recent tax controversies demonstrate the authority of US courts in situations where a taxpayer’s assets are held in a country different than the taxpayer’s country of residence. In United States v. Kelly, a US person held assets in a Swiss bank account and failed to file a Foreign Bank Account Report (FBAR), and the court ordered repatriation of those assets to the United States. In Puri v. United States, an Indian taxpayer held assets in a US bank account, and the United States Supreme Court denied certiorari, finalizing the district court’s order that denied taxpayer’s motion to quash an administrative third-party summons issued by the IRS.

Chapter 22.8 of the California Business and Professions Code imposes requirements on social media companies with annual gross revenues of USD 100 million or more to submit “terms of service reports” to the California Attorney General, with the first report due by 1 January 2024. The statute is currently the subject of a constitutional challenge, but covered companies should not delay preparing reports in case the lawsuit drags on or is unsuccessful.

On Tuesday, 23 January 2024 we are hosting an in-person client event in our New York office on Generative AI: Harnessing the Power and Mitigating Risk. The program includes an exciting in-house counsel panel featuring key speakers from Calix, Wolters Kluwer and Tiffany & Co. We’ll also hear from a cross-discipline Baker team who will discuss legal and regulatory considerations and mitigating risk when using Gen. AI,

The US Securities and Exchange Commission (SEC) recently adopted amendments to the rules governing beneficial ownership reporting under Sections 13(d) and 13(g) of the Securities Exchange Act of 1934, as amended. Among other changes, the amendments accelerate the deadlines for initial and amended Schedule 13D and Schedule 13G filings. The amendments will become effective on February 5, 2024. However, compliance with the revised Schedule 13G filing deadlines will not be required until September 30, 2024.

The United States Federal Trade Commission (FTC) has again shown that social media influencers, endorsements and testimonials remain an enforcement priority. The FTC sent warning letters to two trade associations and several dieticians and other online health influencers to make clear that failure to include clear disclosures that these are paid endorsements may violate the law.

On 30 October 2023, President Biden issued a 63-page Executive Order to define the trajectory of artificial intelligence adoption, governance, and usage within the United States government. The Executive Order outlines eight guiding principles and priorities for US federal agencies to adhere to as they adopt, govern, and use AI. While safety and security are predictably high on the list, so too is a desire to make America a leader in the AI industry, including AI development by the federal government.

In the first three parts of this series, we provided an overview of the new US Food and Drug Administration regulatory requirements under the Modernization of Cosmetics Regulation Act of 2022 (MoCRA), the good manufacturing practices regulations FDA plans to establish, as well as the FDA draft guidance on the facility registrations and products listings. In this Part IV, we are providing an important update of FDA’s compliance policy – enforcement discretion for MoCRA facility registration and product listing until 1 July 2024, as well as the existing FDA resources to help industry prepare for MoCRA implementation.