Senate Republicans should keep the 45V tax credit for clean hydrogen in place until at least 2029, and preferably longer, according to a letter signed June 5 by more than 200 companies and industry groups, including the American Petroleum Institute (API), the U.S. Chamber of Commerce and the National Association of Manufacturers.
As noted in our weekly Hydrogen Billboard report and most recently in Danger Zone, clean-energy initiatives have faced resistance from Republicans in Washington this year, with the budget reconciliation bill currently making its way through Congress on track to produce the most significant changes yet. Under the Inflation Reduction Act (IRA), hydrogen projects that begin construction before 2033 are eligible to receive the credit, which tops out at $3/kg, based on the lifecycle greenhouse gas (GHG) emissions rate (see table below). Under the House’s version of the budget bill making its way through Congress, which passed in late May, projects that begin construction after December 31, 2025, would no longer be eligible — essentially ending any long-term incentives for clean hydrogen production.
