Congress Urges Biden Admin to Finalize Clean Hydrogen Tax Credit Rules
Key Ideas
  • 66 members of Congress led by Senators Whitehouse and Merkley are advocating for the Biden Administration to swiftly implement strict rules for the Section 45V Tax Credit for Clean Hydrogen Production.
  • The lawmakers emphasize the importance of aligning the rules with Congressional intent to reduce carbon emissions and promote growth in the clean hydrogen industry.
  • The Inflation Reduction Act includes various clean energy provisions to boost decarbonization efforts, with a focus on jump-starting innovation in the hydrogen industry to compete with traditional methods.
  • Senators and Representatives propose a three-pillar framework for the tax credit rules to ensure environmental integrity and prevent greenwashing, aiming to stimulate demand for clean electricity while reducing carbon pollution.
A group of 66 members of Congress, spearheaded by Senators Sheldon Whitehouse and Jeff Merkley, alongside Representatives Jamie Raskin and Don Beyer, have penned a letter urging the Biden Administration to quickly finalize strict rules for the Section 45V Tax Credit for Production of Clean Hydrogen, a component of the Inflation Reduction Act. The lawmakers stress the significance of these rules aligning with Congressional intent to drive substantial emissions reductions and foster growth in the emerging clean hydrogen sector, crucial for decarbonizing hard-to-abate industrial areas. The letter, addressed to top officials including Treasury Secretary Janet Yellen and Energy Secretary Jennifer Granholm, highlights the potential of clean hydrogen in reducing emissions across various industries like aviation, shipping, steelmaking, and heavy-duty vehicles. It emphasizes the need for the tax credit to propel innovation in clean hydrogen production to compete with conventional methods. The legislators urge the Treasury to adhere closely to the proposed rules to prevent a rise in net carbon pollution and stress the importance of maintaining a rigorous approach to policy-making. They aim to ensure that the U.S. capitalizes on the opportunity for clean manufacturing and does not compromise its commitment to addressing the climate crisis. The lawmakers advocate for a three-pillar framework focusing on additionality, deliverability, and time-matching to uphold environmental integrity and prevent greenwashing, ultimately advancing the transition to cleaner energy sources. The letter is endorsed by various organizations and lawmakers, underscoring the collective push for stringent regulations that support a vibrant and sustainable clean hydrogen industry in the United States.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2024 AdvanceH2, LLC. All rights reserved.