CLEAN HYDROGEN TAX BENEFITS UNDER THE INFLATION REDUCTION
ACT
Heather Cooper |
Carl J. Fleming |
Allison Perlman
On August 22, 2022, US President Joe Biden signed the Inflation
Reduction Act of 2022 (the Act) into law, which includes $369
billion in energy and climate spending with an unprecedented focus
on clean hydrogen. Specifically, the Act introduces a clean
hydrogen production tax credit (PTC) and broadens the existing
investment tax credit (ITC) in Section 48 of the Internal Revenue
Code (Code) to apply to hydrogen projects and standalone hydrogen
storage technology. The Act further bolsters the hydrogen economy
by enabling taxpayers to stack bonus credits and to capitalize on
direct pay, as well as allowing the transferability of
hydrogen-related tax credits.
