Hydrogen production subsidies essential for expanding hydrogen cars U.S. Republican tax reform bill ‘End of this year’ Hydrogen infrastructure companies such as Hyundai Motor and Toyota sent a letter to Republicans in February to “maintain benefits.”
Biden’s inflation reduction law incentive, which provides subsidies of up to $3 per kilogram for producing clean hydrogen in the United States, is expected to be abolished by the end of this year.
The clause aims to expand the base of hydrogen cars and charging infrastructure by expanding clean hydrogen production, and recently, U.S. energy companies, Hyundai Motor’s North American subsidiary, and Toyota Trade have written to Republicans to demand that benefits continue. The Republican amendment that shakes the bottom of the hydrogen energy spread is by no means welcome news for Hyundai Motor, which is trying to preoccupy the North American hydrogen truck business.
The Mail Business analyzed the 389-page tax code amendment unveiled by House Ways and Means Committee Chairman Jason Smith of the U.S. Republican Party on the 12th (local time), and Republicans changed the 245 page to allow clean hydrogen-related tax credits (Section 45V) only until the end of this year.
The benefit, introduced at the end of Biden’s term, gives energy companies that produce clean hydrogen a tax credit of up to $3 per kilogram to expand demand for eco-friendly vehicles such as cars and large trucks that run on hydrogen.
The Biden administration has set the end of the benefits as January 2033, and the Republican Party plans to change the tax reform plan to January 2026 and end it this year (7 years shorter).
The Republican Party significantly advanced the abolition of the tax reform plan from 2032 to 2026, even the benefit of tax deductions of up to $7,500 for eco-friendly vehicle buyers (Section 30D). It is a major negative factor that reduces the desire to purchase expensive hydrogen cars in the North American market.
Earlier, about 200 companies, including the U.S. Chamber of Commerce and major energy companies, sent a letter to the Republican leadership, urging that section 45V benefits must be maintained to expand the base of hydrogen infrastructure. If incentives disappear from the hydrogen production process, a chain shock will be applied to vehicles running based on hydrogen energy and expansion of charging infrastructure.
The letter also included Germany’s Siemens, Hyundai Motor’s North American subsidiary, and Japan’s Toyota Trade, which operates a hydrogen station business.
“If the Section 45V incentive disappears, related private investment will be at risk, and many of the related jobs and business opportunities will escape from the United States to other countries,” they said. “We respectfully ask that the tax credit be maintained.”
