US House Passes Controversial Bill to Eliminate Key Hydrogen Tax Incentive

• The House narrowly approved President Trump’s legislation to end the 45V clean hydrogen tax credit, potentially undermining billions in planned hydrogen investments.
• Industry groups fiercely oppose the move, warning it risks derailing significant progress in America’s hydrogen sector.

The US House of Representatives has narrowly approved President Trump’s controversial tax and spending package, including the termination of the Section 45V clean hydrogen production tax credit, enacted as part of former President Biden’s Inflation Reduction Act (IRA).

Trump’s "One Big, Beautiful Bill," which passed by a slim 215-214 party-line vote, now heads to the Senate, where it faces further scrutiny and possible amendments.

The legislation proposes that hydrogen projects beginning construction after December 31, 2025, would no longer qualify for the 45V credit, effectively crippling long-term incentives crucial for industry growth. Currently, eligible projects can receive credits of up to $3 per kilogram of hydrogen produced through 2033.

Despite expectations that Republican representatives from districts poised to benefit economically from hydrogen projects might reject the bill, only two GOP lawmakers broke ranks and voted against it.

House Speaker Mike Johnson praised the legislation as "once-in-a-generation," while Democrats pledged to utilize "every tool" available to halt its progress.

In the Senate, Republicans hold a slim majority of 53 seats, sufficient for passage, but internal disagreements could complicate its approval. Any amendments made by the Senate would necessitate a reconciliation conference between the two chambers, after which the revised bill would require final votes in both the House and Senate before reaching President Trump's desk for signing.

Since the bill’s introduction, the hydrogen sector has expressed grave concerns. The Fuel Cell and Hydrogen Energy Association (FCHEA) previously stated that this action would represent a "catastrophic step backwards."

“Our industry has tens of billions of dollars of investments ready to be unleashed across the country,” an industry letter to Republican House leaders stated. “However, should the Section 45V credit be prematurely eliminated, phased down, or have major provisions… removed, these investments and jobs will not come to be.”

 

US House Cuts Hydrogen Tax Credit After Public Backlash

US House Cuts Hydrogen Tax Credit After Public Backlash - Fuelcellsworks