Coalition Urges U.S. Senators to Support Hydrogen Tax Credit Extension
Key Ideas
- Nearly 250 companies and business groups are urging U.S. senators to extend a tax credit for hydrogen projects to boost private sector investments and domestic manufacturing.
- The coalition emphasizes that preserving the tax credit will prevent billions of dollars from flowing out of the United States and into other countries like China.
- Industry analysts highlight the importance of clean hydrogen in decarbonizing heavy industry and vehicles, emphasizing the need for clarity from lawmakers to drive investments and create employment opportunities.
- The letter to senators highlights that extending the construction deadline for hydrogen projects can lead to long-term economic benefits, including job creation in construction, operations, and technology sectors.
A coalition of nearly 250 companies, business groups, and labor organizations in the United States is pushing for the preservation of a tax credit for the hydrogen fuel industry. The group, which includes the American Petroleum Institute, the International Brotherhood of Electrical Workers, and DuPont, is urging Senate Majority Leader John Thune and Senator Mike Crapo to extend the construction deadline for hydrogen projects to December 31, 2029, in order to qualify for the tax break. This move comes after the House of Representatives excluded the tax credit for projects beginning construction after December 31, 2025.
The coalition warns that failing to extend the tax credit would result in the loss of tens of billions of dollars in planned private sector investments, potentially moving these investments to other countries, particularly China. The group emphasizes the importance of clean hydrogen produced from non-fossil energy sources or with carbon capture technology in reducing carbon emissions in heavy industry and transportation.
The letter to the senators highlights that clarity on the extension of the tax credit is crucial for driving private capital investments, boosting domestic manufacturing, and creating long-term employment opportunities in construction, operations, and technology sectors. The coalition believes that extending the construction deadline for hydrogen projects will have significant economic benefits and help secure the future of hydrogen in the United States.
Topics
Projects
Climate Change
Investment
Job Creation
Private Sector
Legislation
Economic Impact
Energy Industry
Tax Credit
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