The New Clean Hydrogen Production Tax Credit, Explained

Nov. 23, 2022, 9:45 AM UTC

The growing hydrogen industry got a big boost from President Joe Biden’s tax-and-climate law: a new 10-year tax credit for clean hydrogen production.

Industry supporters and energy analysts say the brand-new credit will spur innovation and expand the number of production facilities.

“It’s absolutely causing people to do projects that they wouldn’t have considered before,” said Barbara De Marigny, a partner at Baker Botts LLP in Houston.

The Energy Department sees hydrogen as essential to meeting the Biden administration’s goals to achieve net-zero greenhouse gas emissions from the power sector by 2035 and the US economy by 2050.

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