U.S. Senators Push for Tax Rule Changes, Boosting Hydrogen Stocks
Key Ideas
- U.S. Senators, including Bill Cassidy and Mike Crapo, criticize the 45V tax rule for restricting hydrogen producers, potentially pushing hydrogen stocks higher if changed.
- Bloom Energy (BE) offers a strong buying opportunity after pulling back to $13, with analysts reiterating outperform ratings and price targets up to $21.
- Plug Power (PLUG) presents a buy opportunity at $2.45, with recent advancements in its plants and contracts for PEM electrolyzer systems for green hydrogen production.
- Global X Hydrogen ETF (HYDR) provides diversification in the hydrogen sector with top holdings including Bloom Energy and Plug Power, offering growth potential if hydrogen names rise.
U.S. Senators Bill Cassidy, Mike Crapo, Jim Risch, and Pete Ricketts have voiced concerns over the restrictive 45V tax credits, hindering U.S. hydrogen producers' ability to qualify for tax credits. If the rule is loosened, hydrogen stocks could see an increase. Hydrogen, essential for achieving net-zero emission goals, has drawn attention from the Biden Administration. Bloom Energy is highlighted as a strong buy opportunity, with recent contracts and price targets up to $21. Plug Power is also considered a buy, with recent advancements in its plants and contracts for green hydrogen production. The Global X Hydrogen ETF offers diversification in the hydrogen sector with top holdings like Bloom Energy and Plug Power, providing growth potential for investors as hydrogen names gain traction.