US Hydrogen Industry Urges Congressional Support for Tax Credits
Key Ideas
  • A coalition of businesses and organisations in the American hydrogen industry has sent a letter to US congressional leaders advocating for the critical Section 45V tax credits to drive industry growth.
  • The letter emphasizes that regulatory delays have hindered the industry, but with the recent final rulemaking in January, the sector is ready to invest billions in deployments and manufacturing facilities across the country.
  • The US hydrogen sector projects to create 700,000 jobs by 2030 and generate $140 billion in revenue, underscoring the potential economic benefits of supporting hydrogen initiatives.
  • The industry's call for maintaining the tax credit is motivated by the need to prevent job losses and investment shifts to other countries, particularly in light of China's aggressive pursuit of global leadership in clean hydrogen technology.
A letter addressed to US congressional leaders by a coalition representing the American hydrogen industry has underscored the importance of Section 45V tax credits in driving industry growth. The letter expressed concerns over regulatory delays that have impeded private sector investment but indicated readiness to invest billions post the January final rulemaking. Emphasizing job creation and revenue generation potential, the industry warns of the risks of losing out to global competitors, especially China. The US Chamber of Commerce Global Energy Institute President highlighted the need for further improvements in the tax credit rules to attract necessary investments. Despite some mixed reactions to the final rulings, the industry remains hopeful for a conducive environment to scale the hydrogen economy and position the US as a leader in clean manufacturing. The letter aims to secure ongoing support for the tax credit to ensure the US harnesses the economic and environmental benefits of advancing hydrogen technologies.
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