US Treasury Department Releases Rules for Clean Hydrogen Tax Credits
Key Ideas
- The U.S. Treasury Department released rules for claiming federal clean hydrogen tax credits after over a year of anticipation.
- The rules prioritize tax credits for hydrogen made with solar and wind power, while also granting benefits to hydrogen produced from fossil fuels with carbon capture.
- Industry observers expect President-elect Trump to maintain the incentives with potential adjustments to favor fossil fuels more.
- The Inflation Reduction Act's tax credits are estimated to cost $656 billion but deliver as much as $2.7 trillion in net benefits over the next decade.
The article discusses the long-awaited release of rules by the U.S. Treasury Department for claiming federal clean hydrogen tax credits. These tax credits are part of the 45V tax credit included in the 2022 climate law to encourage the production of clean hydrogen. The rules prioritize tax credits for hydrogen produced using solar and wind power. However, some benefits will also be granted to hydrogen produced from fossil fuels if carbon capture technologies are incorporated.
Despite the focus on renewable sources, both oil industry leaders and Republican lawmakers support the hydrogen tax credits. It is expected that President-elect Trump will continue these incentives, possibly with adjustments that could further benefit fossil fuels. The article also mentions the estimated cost of the Inflation Reduction Act's tax credits to be around $656 billion but with potential net benefits of up to $2.7 trillion over the next decade.
The piece further provides additional clean energy news, including President Biden's ban on new federal drilling leases, the expansion of U.S. clean energy manufacturing, urban decarbonization efforts in major cities, and challenges within the oil and gas industry related to environmental damage and liability. It also touches on improvements in electric vehicle technology, challenges in the U.S. power grid's transmission infrastructure, and the cost-benefit analysis of the Inflation Reduction Act's tax credits.
Topics
Production
Renewable Energy
Clean Energy
Carbon Capture
Tax Incentives
Oil Industry
Republican Lawmakers
Climate Law
Federal Policy
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