Washington, DC – Senator Sheldon Whitehouse (D-RI) today released the following statement applauding the Treasury Department’s strong proposed rules for the Section 45V Tax Credit for Production of Clean Hydrogen (45V) that was passed as part of Democrats’ historic Inflation Reduction Act:
“I’m very pleased to see the Biden administration stand up for climate safety and a robust clean energy economy by implementing ambitious rules for the 45V tax credit. Truly clean hydrogen has the potential to deliver enormous emissions reductions, but the nascent industry faces real threats from fossil fuel interests trying to grab yet another government subsidy. Today’s proposed rules will keep emissions in check and align us with the EU’s renewable hydrogen standards, paving the way for a global clean hydrogen market that can drive down emissions in the decades ahead.”
The Inflation Reduction Act (IRA) included a suite of clean energy tax credits and other provisions to boost decarbonization technologies in the United States, including the Section 45V Clean Hydrogen Production Tax Credit. Clean hydrogen has the potential to reduce emissions in aviation, shipping, steelmaking, and heavy-duty vehicles, but is still at an early stage of development. The 45V tax credit as designed by Congress aimed to jump start innovation in the hydrogen industry to give clean hydrogen an opportunity to compete with conventional “grey” hydrogen.
Senators Whitehouse, Jeff Merkley (D-OR), and Martin Heinrich (D-NM) asked Treasury in an October letter to adhere closely to Congressional intent and implement strict rules for the 45V tax credit. The senators urged Treasury to design the standards around three principles – additionality, deliverability, and time-matching – to ensure the environmental integrity of the program. The senators also pointed to the rules governing the European Union’s clean hydrogen economy as a good starting point for Treasury’s standards.
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Meaghan McCabe, (202) 224-2921
