Proposed Hydrogen Rules May Stifle Burgeoning Economic Sector

While the Biden Administration has touted the clean hydrogen production tax credit as a key component of its strategy to incentivize the expansion of the hydrogen economy, strict Treasury regulations as currently proposed would achieve the opposite.

The PTC, added by the Inflation Reduction Act of 2022 as I.R.C. §45V, along with a $7 billion investment by the Department of Energy in seven Regional Clean Hydrogen Hubs (“H2 hubs”) across the nation, is intended to spur the production of clean hydrogen from diverse pathways, including “green hydrogen” produced by the electrolysis of water using renewable electricity and “blue hydrogen” ...