Bloomberg: Senators Call For More Flexibility in Hydrogen Tax Credit Rules
By Caleb Harshberger
A group of Senate Democrats are calling on the Treasury Department to loosen restrictions in proposed rules on the hydrogen production credit.
Senator Alex Padilla (D-Calif.) and a dozen other Senate Democrats said in a letter released Wednesday that the rules as currently proposed would inhibit the growth of the hydrogen industry and undermine the goals of the 2022 tax-and-climate law known as the Inflation Reduction Act, which established the credit.
Currently proposed guidance would institute strict requirements for developers follow in order to claim the credits. IRS officials have said they hope to issue final guidance by the end of the year.
The proposed rules, “would jeopardize billions of dollars of investment in clean hydrogen projects, render the cleanest forms of hydrogen uneconomical, and imperil efforts to decarbonize hard-to-abate sectors of our economy,” the letter from the senators said.
Senators Tom Carper (D-Del.), Sherrod Brown (D-Ohio), Maria Cantwell (D-Wash.), Bob Casey (D-Pa.), Chris Coons (D-Del.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Kirsten Gillibrand (D-N.Y.), John Hickenlooper (D-Colo.), Amy Klobuchar (D-Minn.), and Patty Murray (D-Wash.) joined Padilla in signing the letter.
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