Casey, Colleagues Urge Biden Administration to Change Proposed Hydrogen Production Tax Credit.
Today, U.S. Senator Bob Casey (D-PA) and 12 of his Senate colleagues urged U.S. Treasury Secretary Janet Yellen to update guidance on the proposed 45V tax credit so that more Pennsylvania businesses can compete to be the energy leaders of the future. The Senators called on the Biden Administration to expand sources of hydrogen energy that are eligible for the 45V tax credit created by the Inflation Reduction Act (IRA). After hearing repeated concerns from Pennsylvania workers and companies about the original hydrogen tax credit proposal, Casey and his colleagues are pushing for Treasury to change its proposed rule to ensure that Pennsylvania’s workers and communities will be included in hydrogen investments.
Bob Casey (D-PA), U.S. Senator, said:
The 45V credit offers the United States an irreplaceable opportunity to boost our economic and international competitiveness.
“We have one more chance to get this right. Without significant changes to the draft guidance that align with the parameters provided in statute, one of the most powerful job creation and emission reduction tools in the IRA will likely be hamstrung by future court challenges, Congressional opposition, and unfulfilled private sector investment. Getting it right means capitalizing on this opportunity to reduce greenhouse gas emissions faster and enhance our energy security, while strengthening our economy, creating thousands of jobs, and combating the climate crisis,”
The 45V Clean Hydrogen Production tax credit, created by the Inflation Reduction Act, was intended to spur the production of hydrogen fuel, a potent energy source that can power American manufacturing, transportation, and heavy industries sustainably. The proposed guidance for the 45V tax credit does not properly reflect the reality of Pennsylvania’s economies and would exclude many of the communities that have been historic leaders in energy. Unless revised, the guidance would jeopardize billions of dollars of investments in clean hydrogen projects and undermine efforts to create an enduring clean hydrogen industry.
The Senators urged Treasury to update and finalize guidance to clearly include diverse Pennsylvanian projects so the Commonwealth can continue to bolster its economy through clean energy investments. The proposed updates to the tax credit guidance reflect industry and labor needs as well as decarbonization efforts that are already underway. If implemented, the updated guidance would result in significant overall emissions reductions.
Senator Casey has worked relentlessly to ensure that Pennsylvania can benefit from investment in American manufacturing and energy initiatives. The Inflation Reduction Act passed in 2022 with Casey-led provisions to promote manufacturing investments in communities that have traditionally had a high percentage of energy-related jobs and to ensure that new investments rely on American made materials such as steel and iron. The landmark legislation created clean energy jobs and opportunities for economies across the Nation to benefit from clean energy initiatives.
In October 2023, Casey announced the launch of the two hydrogen hubs, funded by the Infrastructure Investment and Jobs Act: the Mid-Atlantic Clean Hydrogen Hub (MACH2), based in Southeastern Pennsylvania, and the Appalachian Regional Clean Hydrogen Hub (ARCH2) serving Pennsylvania, West Virginia, Ohio, and Kentucky. These hubs will bring jobs, economic growth, and energy innovation to the Mid-Atlantic and the Appalachian Basin. Additionally, Casey announced The Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization (Energy Communities IWG) Rapid Response Team. This team will assist Pennsylvania organizations, businesses, and local governments in coordinating federal resources they need to position the Commonwealth as a national leader in next-generation energy and train workers.
In December, Casey criticized the Biden Administration’s initial 45V proposal and has pushed the Administration ever since. In May, Senator Casey pressed President Biden to expand the array of hydrogen sources that are eligible for a tax credit.
Pennsylvania is the only state in the Nation to earn two highly competitive Hydrogen Hubs, making it poised for economic growth from hydrogen production.
Senator Casey led the letter with Senators Tom Carper (D-DE), Maria Cantwell (D-WA), and Sherrod Brown (D-OH).
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Casey, Colleagues Urge Biden Administration to Change Proposed Hydrogen Production Tax Credit. source
