US Clean Hydrogen Projects Racing Against End-2027 Deadline After Congress Passes One Big Beautiful Bill Act
Key Ideas
  • Clean hydrogen projects in the US must begin construction by the end of December 2027 to qualify for the 45V production tax credit under the One Big Beautiful Bill Act.
  • The tax credit offers up to $3/kg and is crucial for the feasibility of green hydrogen projects in the US.
  • The Act, passed by Congress, represents significant support for clean hydrogen initiatives, despite the earlier sunset date compared to previous plans.
  • The deadline extension to 2027 provides a clear timeline for clean hydrogen project developers to secure funding and initiate construction.
Clean hydrogen projects in the United States are facing a deadline of the end of December 2027 to qualify for the 45V production tax credit. This tax credit, offering up to $3/kg, is a pivotal factor in the success of green hydrogen initiatives in the country. The One Big Beautiful Bill Act, recently passed by Congress after extensive discussions, sets the new deadline for the tax credit, replacing the previous timeline proposed by the Inflation Reduction Act which planned for a later expiration. The Act's passage signals strong governmental support for clean hydrogen projects, despite the earlier sunset date. While House Republicans had initially pushed for the credit to end this year, the final deadline of 2027 allows developers a clearer path to secure funding and commence project construction. This deadline spurs a race among clean hydrogen projects to meet the eligibility criteria and highlights the importance of timely investments in green energy infrastructure.
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