U.S. Treasury Department Issues Guidance on 45V Tax Credit for Clean Hydrogen Projects
Key Ideas
  • The U.S. Treasury Department has provided final guidance on eligibility for the 45V tax credit for hydrogen projects, aiming to support clean initiatives that do not exacerbate pollution.
  • The Biden administration's tax guidance is seen as a positive step towards promoting clean hydrogen projects, but concerns remain about loopholes that could benefit dirty hydrogen producers.
  • Earthjustice and partners are advocating for more robust protections in the 45V clean hydrogen program to ensure it truly serves as a climate solution and not a greenwashing tactic by the fossil fuel industry.
  • Efforts are ongoing to emphasize the importance of green hydrogen production using 100% renewable electricity, emphasizing the 'three pillars' framework of incrementality, hourly matching, and deliverability for clean hydrogen projects.
The U.S. Treasury Department has issued final guidance regarding the eligibility criteria for the 45V tax credit aimed at supporting clean hydrogen projects. Chris Espinosa, from Earthjustice, appreciates the Biden administration's efforts in providing tax guidance that backs clean hydrogen initiatives while expressing the need for more safeguards. The guidance focuses on promoting clean hydrogen production that minimizes climate and health-harming pollution. However, concerns are raised about loopholes that could potentially benefit producers of 'dirty' hydrogen, undermining the program's intended environmental benefits. Earthjustice, along with its partners, is committed to collaborating with Congress to ensure that the 45V clean hydrogen program and other hydrogen policies genuinely contribute to addressing the climate crisis. The organization stresses the importance of utilizing green hydrogen made from 100% renewable electricity sources like solar power to ensure environmental sustainability. By emphasizing the 'three pillars' framework of incrementality, hourly matching, and deliverability, Earthjustice aims to promote the production of truly clean hydrogen that aligns with the goals of combating climate change and advancing clean energy initiatives.
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