The Inflation Reduction Act’s “clean” hydrogen tax credit could survive the GOP’s plans for a tax cut, energy and immigration bill, but Republicans are eyeing modifications that could make it unrecognizable to Democrats and environmentalists.
Tinkering with it could also make it more expensive, a likely stumbling block for a Republican Party searching for savings in their budget reconciliation bill.
The hydrogen incentive, known as 45V for its place in the tax code, provides generous incentives to producers who use low-carbon sources to generate the transportable fuel. It’s widely seen by boosters as an essential piece to ensuring the nascent industry, which has yet to prove it can be an economic source of energy.
And as Republicans continue to eye tax credits for the chopping block as part of their upcoming reconciliation process, the hydrogen tax credit could be a survivor due to its job-creating benefits to red states.
