Tax Credit News Boosts Plug Power and Constellation Energy Stocks
Key Ideas
- Plug Power shares surged for a second straight session following the Treasury Department's announcement on tax credits for clean hydrogen production.
- The new rules aim to accelerate the deployment of clean hydrogen and offer economic opportunities for producers using various sources like natural gas with carbon capture and renewable natural gas.
- Constellation Energy also saw a rise in stock value as the rules clarified how nuclear power generators can benefit from tax credits for clean hydrogen production.
- While Plug Power's shares rose significantly, they are still lower by about 30% over the past year.
Plug Power (PLUG) and Constellation Energy (CEG) experienced increases in stock value after the Treasury Department issued final rules for tax credits related to clean hydrogen production. The rules, part of the Inflation Reduction Act of 2022, offer flexibility and clarity to producers on eligibility criteria, including those using various energy sources. The announcement was met with positivity, emphasizing the potential for growth in the clean hydrogen industry and the creation of new economic prospects. Deputy Energy Secretary David Turk highlighted the importance of these changes in expediting the deployment of clean hydrogen, which involves minimal to zero emissions of fossil fuels or greenhouse gases. Constellation Energy's stock also rose as the rules outlined how nuclear power generators could access tax credits for clean hydrogen. Despite the recent surge in Plug Power's shares, the company's stock value remains lower compared to the previous year. The positive market response indicates investor confidence in the potential benefits of the new tax credit regulations for clean energy production.