Funding Clean Electricity Will Help Grow the Hydrogen Economy

The Inflation Reduction Act of 2022 is as much a climate and green energy bill as it is legislation aimed at curbing inflation. In addition to its electric vehicle credit reform, it contains provisions aimed at transitioning industry away from coal and natural gas.

The so-called 45V tax credit, named for the section of the tax code created by the tax and climate bill, limits the full tax credit to hydrogen produced with an output of greenhouse gas less than 0.45 kilograms per kilogram of hydrogen. In plain language, the hydrogen must be produced by clean electricity to qualify ...