NATSO filed comments on Feb. 26 in response to the Treasury Department’s proposed rule governing the implementation of a new tax credit for clean hydrogen production. The credit, often referred to by its section in the tax code “45V”, was enacted in 2022 as part of the Inflation Reduction Act.
NATSO argued in the comments that the Biden Administration included overly restrictive requirements for the credit that go far beyond what Congress intended.
“Many specific elements of Treasury’s proposal,” NATSO wrote, “would effectively neuter the 45V credit and surrender the decarbonization potential of a burgeoning hydrogen industry.”
Treasury proposed three “pillars” that hydrogen producers must comply with in order to qualify for the credit. Specifically, the proposal requires that hydrogen be produced with newly-generated electricity capacity in the same region as the production facility and, beginning in 2028, that the electricity be generated in the same hour that the hydrogen is produced.
NATSO argued in its comments that, as proposed, the three pillars by Treasury have no legal basis. “These requirements have no basis in statute…since the enactment of the IRA, the Members of Congress who authored Section 45V have repeatedly clarified their intent was to allow varied, existing sources of clean electricity generation to qualify for the credit.”
NATSO has long advocated for policies that support the growth of the clean hydrogen industry, as it can be used in hard-to-abate sectors such as heavy-duty trucking. Many NATSO members – particularly those with highway locations that service heavy-duty commercial trucks – are actively expanding their hydrogen capabilities in response to market- and federal policy signals.
The Treasury Department will now review comments on the proposal before issuing a final rulemaking.
NATSO SIGMA Comments on 45V Hydrogen Credit.pdf (PDF 244k)Subscribe to Updates
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