U.S. Department of Treasury Releases Final Guidance on Hydrogen Production Tax Credit
Key Ideas
- The National Association of Manufacturers (NAM) supports the new final guidance by the U.S. Department of Treasury for the hydrogen production tax credit, emphasizing the importance of unleashing the energy potential of hydrogen, natural gas, and nuclear power.
- NAM advocates for project-specific emissions data to ensure flexibility in the credit, aiming to boost the hydrogen industry and help American energy dominance.
- The guidance is seen as a step forward under the Biden administration, with a focus on addressing restrictions to enhance global cost competitiveness and promote a robust and flexible hydrogen industry.
- NAM believes that by leveraging tax cuts, reducing red tape, and facilitating permitting reform, the hydrogen production tax credit can be a powerful tool for advancing American energy leadership, fuel security, and economic growth.
The U.S. Department of Treasury recently issued new final guidance on the hydrogen production tax credit, drawing support from the National Association of Manufacturers (NAM). Jay Timmons, President and CEO of NAM, highlighted the significance of tapping into various energy sources, including hydrogen, natural gas, and nuclear power. The emphasis was placed on expanding hydrogen production facilities to provide manufacturers, power plants, and communities with additional sources of reliable energy, ultimately reinforcing America's energy dominance. NAM stressed the need for project-specific emissions data to ensure flexibility in the credit, a stance welcomed in the Biden administration's guidance. However, to maximize hydrogen's potential as a game-changing energy source, NAM called for addressing restrictions hindering global cost competitiveness. The organization sees a thriving hydrogen industry as beneficial for both American natural gas and nuclear power sectors. NAM's advocacy extends to leveraging tax cuts, reducing regulatory burdens, and streamlining permitting processes to amplify the impact of the hydrogen production tax credit for the benefit of American manufacturers, workers, and the economy. With manufacturing playing a crucial role in the U.S. economy, NAM's support for hydrogen as a key energy source underscores the importance of strategic policy initiatives in driving innovation, competitiveness, and job creation.
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