Stakeholders Push for Hydrogen Tax Credit

June 16, 2025 

More than 200 organizations, regional hydrogen hub developers, and major oil and gas trade groups are pressing senators to preserve the Inflation Reduction Act’s hydrogen production tax credit in the budget reconciliation bill.

In a letter to Senate leaders last week, the organizations call for the hydrogen tax credit to remain in place for projects that commence construction by Dec. 31, 2029. That timeline would provide a runway for the industry to advance projects already in multiyear development cycles.

Signatories of the letter included the Fuel Cell and Hydrogen Energy Association (FCHEA), American Petroleum Institute, National Association of Manufacturers, U.S. Chamber of Commerce and American Chemistry Council, in addition to nearly 200 companies across the energy value chain.

“Maintaining the 45V credit allows for a true energy diversity, which leverages America’s tremendous energy resources including natural gas, hydroelectricity, nuclear power, renewable natural gas, and more. In fact, an estimated 9.8 million metric tons per annum of natural gas-based hydrogen capacity is in development across the United States, which would nearly double America’s existing hydrogen production volume. According to a recent analysis by Citizens for Responsible Energy Solutions (CRES), these projects could support 60,000 jobs per year across the country between 2025 and 2035 and generate more than $12 billion in annual GDP. However, those projects are relying on the Section 45V credit to deliver on those investments and jobs.” (FCHEA letter)

According to FCHEA, the industry stands ready but if the Senate does not act to rectify the actions taken by the House, it will drive tens of billions of dollars in planned private sector investments out of the United States.

Green hydrogen, which is mainly produced by water electrolysis using renewable electricity, is one of the levers that will speed up the transition to a carbon neutral future. ENGIE a major player in renewable hydrogen and operates along the entire length of the hydrogen value chain – from production of renewable energies to end uses. ENGIE is involved in production, end uses, strategy, design, engineering, building low-energy assets, digital platforms, operation, funding and performance obligation.

For more: https://fchea.org/wp-content/uploads/2025/06/Senate-45V-Sign-On-Letter-Final-6-5-2025-2.pdf