Hydrogen Energy Boosters Fight to Protect Tax Credit in Inflation Reduction Act
Key Ideas
- Oil and gas interests, alongside various hydrogen energy boosters, are advocating for the preservation of the 45V hydrogen tax credit in the Inflation Reduction Act.
- Over 110 trade groups and companies, from the American Petroleum Institute to the American Council on Renewable Energy, are emphasizing the importance of this tax credit to sustain private sector investment and job creation in the hydrogen sector.
- The groups argue that removing the tax incentive could lead to a shift of deployments, jobs, and opportunities in the hydrogen industry from the U.S. to other countries, posing a risk to the economy.
- Republicans are considering repealing certain clean energy incentives, including those in the Democrats' climate law, to reduce spending; the fate of the 45V hydrogen tax credit remains uncertain as legislative committees deliberate on IRA provisions.
Oil and gas interests, in conjunction with supporters of hydrogen energy, are actively lobbying to safeguard the 45V hydrogen tax credit incorporated in the Democrats’ 2022 Inflation Reduction Act. More than 110 trade groups and companies, spanning a wide spectrum from the American Petroleum Institute to the American Council on Renewable Energy, have united in a collective effort to advocate for the retention of this tax credit. Recognizing its significance, the groups assert that private sector investments are in jeopardy due to the ambiguity surrounding this critical incentive. They emphasize that the hydrogen sector stands to lose hundreds of companies and thousands of jobs if this tax credit is eliminated, potentially resulting in a shift of industry activities from the United States to global competitors. Meanwhile, Republicans are contemplating the removal of certain clean energy incentives, including those outlined in the 2022 climate law by Democrats, as part of a broader strategy to curtail expenditure and advance GOP priorities. Committees in the House and Senate are currently deliberating on which specific provisions of the Inflation Reduction Act to target, leaving the fate of the 45V hydrogen tax credit uncertain as the legislative process unfolds.