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Proposed Electrolyzer Requirements for the Hydrogen Tax Credit: Strengths and Risks

Union of Concerned Scientists

The tax credit, passed as part of 2022ā€™s Inflation Reduction Act, provides a generous incentive for the production of clean hydrogen. Today, hydrogen is overwhelmingly produced through a heavily polluting fossil fuel-based process. Otherwise, hydrogen will slow the clean energy transition, not speed it.

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UCS Testimony on the Clean Hydrogen Production Tax Credit

Union of Concerned Scientists

Department of the Treasury (Treasury) to carefully implement multiple new Inflation Reduction Act (IRA) tax credits, including the Section 45V Credit for Production of Clean Hydrogen (ā€œ45Vā€). Upstream methane emissions are a potentially substantial share of the overall emissions rate of fossil fuel-based hydrogen production facilities.