CHFC Celebrates the Creation of a Hydrogen Production Tax Credit in the IRA
WASHINGTON–(BUSINESS WIRE)–On August 12, 2022 Congress passed the Inflation Reduction Act of 2022, which will now be sent to President Biden to be signed into law. The Inflation Reduction Act will create a new clean hydrogen production tax credit, an incentive that is critical to developing the hydrogen economy in the U.S. The CHFC is supportive of the hydrogen-related provisions in the Inflation Reduction Act and looks forward to continued work with Congress to advance hydrogen technologies.
CHFC Chair Erik Mason, Nikola Global Head of Energy Supply & Trading, issued the following statement on the legislation:
“The Clean Hydrogen Future Coalition (CHFC) commends Congress on the passage of the Inflation Reduction Act (IRA), which includes a new clean hydrogen production tax credit (PTC). This new PTC with the ability to take elective payment will enable private sector investments in clean hydrogen projects throughout the country and leverage the commitment Congress already made to clean hydrogen hubs in the Infrastructure Investment and Jobs Act. The CHFC thanks Congressional leaders in the House and Senate that contributed to the development of this provision and championed them throughout this process.
The CHFC aims to support policy solutions that promote a resource-agnostic, technology-neutral approach to the economy-wide deployment of clean hydrogen. CHFC members believe all clean hydrogen production methods with low or net-zero CO2 emissions are necessary to scale clean hydrogen to levels at which it can contribute to economy-wide decarbonization. The CHFC is supportive of a hydrogen production tax credit that will result in investments for all forms of clean hydrogen production and celebrates the establishment of a clean hydrogen PTC, even if it may fall short of that goal.
We look forward to President Biden signing the IRA into law so that clean hydrogen can continue to advance as a versatile decarbonization tool and create well-paying jobs across all sectors of our economy. The CHFC looks forward to continued engagement with the administration on the implementation of this important provision.”