Cantwell Presses Energy Secretary On Hydrogen Tax Credit
During a Wednesday hearing of the Senate Energy Committee, U.S. Sen. Maria Cantwell, D-Wash., aggressively questioned Energy Secretary Chris Wright about Republican efforts to eliminate the clean hydrogen production tax credit.
In 2023, the Biden administration awarded a $1 billion grant to the Pacific Northwest Hydrogen Association, a multi-state, nonprofit coalition focused on developing a regional clean hydrogen hub in the Pacific Northwest. The coalition includes partners from Washington, Oregon and Montana.
Such hubs are envisioned to help speed up the development of hydrogen as a clean fuel that could help reduce greenhouse gas emissions in difficult-to-decarbonize industries, such as fertilizer production, steel making and electricity generation.
The House of Representatives has passed the “One Big Beautiful Bill Act,” which included a provision to eliminate the 45V tax credit for projects that begin construction after 2025. Section 45V of the U.S. Internal Revenue Code provides a tax credit for producing clean hydrogen.
The Republican-led Senate Finance Committee has retained the clause to scrap the 45V credit in their version of the budget reconciliation bill, which mirrors the House’s provision to eliminate the credit for projects starting construction after 2025.
“I actually think getting rid of the tax credits that we have, some of the other ones, broadly, are going to lead to electricity increased cost,” Cantwell said. “And so, can I get you to tell me about the hydrogen hubs, whether you believe you support the hydrogen hubs and moving forward on this?”
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