Legislators say limiting tax credits to new energy sources will limit market development.
Ten Senators drafted a letter to President Biden’s administration advocating for greater leniency within the rules for new tax credits for clean hydrogen energy. Led by Senator Maria Cantwell of Washington, the letter points out that the rules currently only allow projects fueled exclusively by hydrogen to apply for the credits.
The ten legislators, including Senator Joe Manchin of West Virginia, contend that the rules should be expanded to hydrogen hubs also fueled by gas, hydroelectricity, and nuclear power.
They make the case, in the letter, that the current exclusivity “may hamper the development of a robust clean hydrogen market, undermine volumetric production and price-parity goals, reduce the positive effects of scaling up electrolyzer investment, and prevent clean hydrogen from fulfilling vital roles in hard-to-decarbonize sectors in line with the Administration’s broader decarbonization efforts.”
The letter will be sent to White House Adviser John Podesta, Treasury Secretary Janet Yellen, and Energy Secretary Jennifer Granholm.
As the Lord Leads, Pray with Us…
- For administration officials as they consider the legislators’ request for tax credit flexibility.
- For the president and members of his administration as they pursue “clean” energy options.
- For the senators as they advocate for broader support of hydrogen development.
Sources: Reuters, NPR
