ConservAmerica Joins Coalition Letter on Proposed Hydrogen Production Tax Credit Rule

Washington, DC – ConservAmerica joined a broad coalition this week in filing comments on the Department of Treasury and Internal Revenue Services’ proposed regulations regarding section 45V of the Internal Revenue Code. Passed as part of the Inflation Reduction Act of 2022, section 45V seeks to accelerate the production of clean hydrogen through a 10-year production tax credit.

“While we support the efforts of the U.S. Department of Treasury, Internal Revenue Service, and the U.S. Department of Energy to accelerate investments in clean hydrogen production, we fear the proposal could have the opposite effect,” said ConservAmerica Vice President of Policy Todd Johnston. “By applying an overly narrow standard for project eligibility, the proposal could stifle innovation and private sector investment, and discriminate against some regions based on their existing clean energy mix. The proposed rule should be revised to better align with congressional intent and our overarching carbon goals, by supporting broader applicability of the 45V credit to the production of clean hydrogen through all current and future feedstocks and technologies.”

Clean hydrogen is a crucial tool for achieving the country’s carbon reduction goals, with the potential to reduce emissions from so-called “hard to abate” industrial sectors like freight transportation, steel and cement, chemicals, and others. The 45V Credit was designed by Congress not only to drive rapid growth and deployment of domestic clean hydrogen production facilities but also to provide supply-side incentives to stimulate demand for end-use consumption.

To read the full coalition letter, click here.

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