Hydrogen Industry Presses Treasury on Tax Credit Implementation

The hydrogen tax credit shouldn’t have unworkable rules that shift investments abroad, the US Chamber of Commerce and hydrogen companies said in a comment letter to Treasury on Monday.

The Biden administration’s Inflation Reduction Act created a hydrogen production tax credit under Section 45V that pays as much as $3 per kilogram of clean hydrogen produced over 10 years.

The tax credit, however, has prompted a debate as to whether hydrogen producers should be required to source energy from renewable power plants, adding pressure on government agencies as they try to implement it.

• If the rules are overly restrictive ...