Full Title: Evidence Shows Three Pillars Remain Crucial for 45V Hydrogen Tax Credit to Protect Climate, Consumers, Industry
Author(s): Dan Esposito
Publisher(s): Energy Innovation Policy and Technology LLC
Publication Date: July 1, 2024
Full Text: Download Resource
Description (excerpt):
The Biden Administration signed the Inflation Reduction Act (IRA) into law in August 2022, which included the Section 45V Clean Hydrogen Production Tax Credit (45V). The United States Treasury Department issued draft rules for 45V in December 2023 but has yet to publish final rules. Treasury’s draft rules require electrolyzers—which split hydrogen from water molecules—to use incremental, deliverable, hourly-matched clean electricity (the “three pillars”) in their hydrogen production in order to earn the top $3-per-kilogram-hydrogen subsidy.
This research note summarizes real-world developments and analysis over the last two years, affirming Treasury should finalize its proposed three-pillars framework (“strong 45V rules”). Strong rules are essential for cutting climate pollution, protecting consumers, and building a truly clean hydrogen industry able to succeed long term.