Senators Call For More Flexibility in Hydrogen Tax Credit Rules

A group of Senate Democrats are calling on the Treasury Department to loosen restrictions in proposed rules on the hydrogen production credit.

Senator Alex Padilla (D-Calif.) and a dozen other Senate Democrats said in a letter released Wednesday that the rules as currently proposed would inhibit the growth of the hydrogen industry and undermine the goals of the 2022 tax-and-climate law known as the Inflation Reduction Act, which established the credit.

Currently proposed guidance would institute strict requirements for developers follow in order to claim the credits. IRS officials have said they hope to issue final guidance by the end ...