U.S. Companies and Groups Urge Senate to Preserve Hydrogen Fuel Industry Credit
Key Ideas
- A coalition of 250 companies and groups has urged U.S. Republican senators to extend the construction deadline for hydrogen projects to receive tax breaks, emphasizing the importance of preserving the hydrogen fuel industry.
- The letter to Senate Majority Leader John Thune and Senator Mike Crapo highlighted that failing to act now by preserving the 45V credit could result in losing potential investments to other countries, particularly to China.
- Industry analysts believe that clean hydrogen is crucial for decarbonizing heavy industry and certain vehicles, with the potential to spur private capital investments, boost manufacturing, and create job opportunities in various sectors.
- The letter emphasized that legislative clarity on hydrogen-related tax incentives is essential to drive billions of dollars in private investments, enhance domestic manufacturing, and support employment in construction, operations, and technology.
A coalition of nearly 250 companies, business groups, and labor organizations in the United States, including the American Petroleum Institute and the International Brotherhood of Electrical Workers, has urged top U.S. Republican senators to preserve a tax credit for the emerging hydrogen fuel industry. The group is advocating for an extension of the construction deadline for hydrogen projects to receive tax breaks until December 31, 2029. The Senate is currently debating the issue, especially after the House of Representatives terminated the existing 45V credit for projects starting construction after December 31, 2025. The coalition expressed concerns that not extending the credit could lead to losing significant private sector investments to other countries, particularly China. By urging legislative action to preserve the credit, the coalition aims to support the future of hydrogen in the United States and prevent potential capital outflows. The letter also highlighted the importance of clean hydrogen in decarbonizing heavy industry and certain vehicles, emphasizing the need for legislative clarity to attract private investments, enhance manufacturing capabilities, and create long-term job opportunities. Overall, the coalition's message emphasizes the positive impact that preserving the tax credit can have on driving economic growth, sustainability, and competitiveness in the hydrogen fuel industry.