Industry Organizations Unite to Advocate for Retention of Hydrogen Production Tax Credit in the US
Key Ideas
  • More than 240 industry organizations, with support from FCHEA, are urging the U.S. Senate to maintain the Section 45V Hydrogen Production Tax Credit for economic and strategic reasons.
  • The proposed change in the bill would move the construction deadline for claiming the tax credit to the end of 2025, aiming to support long-term development cycles for hydrogen projects.
  • FCHEA emphasizes that retaining the tax credit until December 31, 2029, is crucial to safeguard billions in investments, tens of thousands of jobs, and domestic energy production in the US.
  • FCHEA's president highlights the potential of Section 45V in driving job creation, energy trade relationships, and preventing the loss of private sector investments to other countries like China.
A coalition comprising over 240 industry organizations, including the Fuel Cell & Hydrogen Energy Association (FCHEA), has come together to advocate for the preservation of the Section 45V Hydrogen Production Tax Credit in the United States. The push involves a joint letter to the U.S. Senate leadership stressing the economic and strategic significance of maintaining this tax credit. The bill in question, recently approved by the House of Representatives, includes a pivotal amendment that would shift the commencement of construction deadline for claiming the 45V clean hydrogen production tax credit to the end of 2025, as opposed to the current deadline of 2033. The letter, endorsed by FCHEA, the American Petroleum Institute, National Association of Manufacturers, U.S. Chamber of Commerce, and other prominent entities, requests for the tax credit to stay active with a construction start date no earlier than December 31, 2029. The rationale behind this extension is to provide the necessary runway for the multi-year development cycles essential for hydrogen projects. The industry stakeholders stress that any alteration putting the tax credit at risk endangers substantial investments and numerous job opportunities. FCHEA, recognized as the leading national industry association promoting the advancement of innovative, clean, and safe hydrogen energy, highlights that the retention of Section 45V can lead to increased domestic energy production, manufacturing prospects, job growth, and energy trade connections. The organization's president and CEO, Frank Wolak, underlines the transformative impact of Section 45V in fostering new energy production, job opportunities, and trade relationships. He warns that without Senate intervention to address the House's actions, the US risks losing billions in planned private sector investments to other nations, notably China.
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