Hydrogen Industry Optimistic About Tax Credit Extension Push
Key Ideas
- The hydrogen industry, led by the Fuel Cell and Hydrogen Energy Association, is actively lobbying to extend the 45V tax credit for another five years, with a focus on key Senators and states with vested interest in hydrogen development.
- Stakeholders from hydrogen hubs in states like Louisiana, West Virginia, Texas, and Utah have rallied behind the tax credit, urging the Senate to maintain it as essential for the success of ongoing projects.
- The industry's messaging has shifted from broad development value to a more tactical approach in recent weeks, emphasizing the importance of the credit extension to stay ahead of global competition, particularly from China.
- The industry's unified ask to Congress is to extend the 45V tax credit until December 31, 2029, distinct from broader clean energy sector efforts, with a focus on educating Senators on the cost benefit of hydrogen projects.
As Congress nears its deadline for finalizing a reconciliation bill, the hydrogen industry is expressing optimism about extending the 45V tax credit for another five years. Led by the Fuel Cell and Hydrogen Energy Association, the industry has sharpened its lobbying strategy to focus on key Senators and states like Louisiana, West Virginia, Texas, and Utah, where federally funded hydrogen hubs are located. The industry's unified ask is to prolong the tax credit until 2029, emphasizing the competitive advantage it provides against China.
The industry's messaging has evolved from broad benefits to a more tactical approach, highlighting the need for stability to outpace global competitors. Despite concerns raised by the House's version of the reconciliation bill, the industry remains united in its push for the tax credit extension and has put aside discussions on guidance specifics to focus on educating Senators on the value of hydrogen projects. The coalition's focus is singular, aiming to avoid internal disputes and maintain a consistent message.
Furthermore, the industry is stressing the importance of staying ahead of China in hydrogen technology and the opportunity for American leadership in the sector. While federal funding for hydrogen hubs remains crucial, the industry's primary objective is securing the tax credit extension, leaving funding decisions to the Department of Energy. Overall, the industry's targeted lobbying efforts and unified ask demonstrate a positive outlook on the future of hydrogen development in the US.
Topics
Middle East
Clean Energy
Energy Sector
Lobbying
Tax Credit
Federal Funding
Bipartisan Support
Government Relations
Reconciliation Bill
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