Flexible Hydrogen Tax Credits Gain Democratic Allies in US House

Treasury should change its proposed clean hydrogen production credit with more business-friendly flexibility, a dozen House Democrats wrote in a letter to the Treasury Department on Tuesday.

“If the guidance is too restrictive, it would severely hamper our ability to compete globally and could allow countries like China to surpass us in this critical technology,” the lawmakers wrote in a letter to Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel, exclusively obtained by Bloomberg Tax.

They specifically recommend that the rule implementing the so-called 45V credit, for its section of the code, include more flexible “incrementality ...