The US Treasury Department released proposed guidance for the Inflation Reduction Act�s (IRA) clean hydrogen tax credit. The guidance conditions eligibility for this tax credit, an incentive of up to... The post Clean Hydrogen Boom Incoming: US Treasury Unveils...
The US Treasury Department released proposed guidance for the Inflation Reduction Act�s (IRA) clean hydrogen tax credit. The guidance conditions eligibility for this tax credit, an incentive of up to $3/kilogram, on the hydrogen produced using clean power sources. Notably, the guidance enables grid-connected hydrogen projects to qualify for the credit while setting evidence-based guardrails to ensure that public dollars are achieving the emissions reductions required by law.
RMI U.S. Program Managing Director Leia Guccione:
�Thanks to the guardrails proposed by the Treasury Department, the clean hydrogen tax credit will fuel massive industrial growth across America and protect communities from planet-heating pollution�� all while creating low-carbon, long-lasting projects. Aligning these rules with international standards encourages global trade and U.S. competitiveness in the clean energy economy. That�s why these standards have strong support from key industry players.�
�We applaud the US Treasury for leading a rigorous process that was inclusive of input from a wide array of stakeholders and comprehensive in its considerations of industry and community needs. They have developed guidance that strikes a thoughtful balance between administrative practicality, intentional market-shaping, and environmental integrity while being responsive to the current needs of the American hydrogen industry.�
Related Article: U.S. Treasury Releases Guidance to Expand Access to Clean Vehicle Tax Credits
RMI Climate-Aligned Industries Managing Director Bryan Fisher:
�The industries that clean hydrogen can transform � steel, shipping, aviation, and fertilizer to name a few� touch nearly every aspect of our lives: where we live, how we move, what we eat. Clean hydrogen is critical in delivering the solutions that will reduce carbon pollution from these sectors. The scale of the technology-neutral hydrogen tax credit and the rules proposed today will provide early movers with the capital and credibility needed to swiftly scale their operations and jumpstart a low-emissions hydrogen economy.� With these incentives, the United States is poised to be a leader in low-emissions hydrogen.�
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