Hydrogen tax credit advances to US Senate
Measure will have sliding scale with four categories of carbon intensity
A ten-year tax credit for hydrogen production was approved by the US House of Representatives on Friday as part of President Joe Biden’s Build Back Better bill. The credit is not law yet as the bill still needs to be debated and voted on by the Senate, which is likely to happen in December. The credit is worth $3/kg of hydrogen produced—a dollar-for-dollar reduction on the tax owed on the fuel. It is neutral on what form of technology is used to produce the hydrogen—meaning developers of both green and blue projects can qualify as long as they meet the carbon intensity requirements. Hydrogen producers will receive 100pc of the tax credit if the lifecycle greenhouse gas emissions rate of the
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