The budget reconciliation bill approved by the Senate on Tuesday would extend the 45V tax credit for clean hydrogen production by another two years, enough to provide a boost for projects nearing construction but still significantly shortening the credit’s eligibility window.
Under the version of the budget bill passed by the House a few weeks ago, projects would need to begin construction by December 31, 2025, to be eligible for the tax credit — essentially ending any long-term incentives for clean hydrogen production. The Senate version pushes the deadline back to December 31, 2027. As shown the chart below, the credit tops out at $3/kg.
