Biden Unveils Hydrogen Tax Credit Proposal

The Biden administration has unveiled its highly anticipated proposal for allocating billions of dollars in tax credits to hydrogen producers.

Administration officials estimate that hydrogen production credits will generate $140 billion in revenue and create 700,000 jobs by 2030.

This marks a significant effort to develop an industry seen as a potentially cleaner alternative to fossil-fueled power, Fatima Hussein and Jennifer McDermott reported for the Associated Press (AP).

Considered the most generous in the world for hydrogen production, the US credit is part of the Democrats' Inflation Reduction Act passed last year.

The proposal introduces a tiered system to determine the allocation of credits, with cleaner energy projects receiving more substantial credits. Smaller, but still meaningful credits will go to those using fossil fuels in hydrogen production.

Administration officials estimate that hydrogen production credits will generate $140 billion in revenue and create 700,000 jobs by 2030.

Furthermore, they anticipate that the proposal will aid the US in producing 50 million metric tons of hydrogen by 2050. Energy Deputy Secretary David M. Turk highlighted on a recent call with reporters that this is equivalent to the amount of energy currently used by every bus, plane, train, and ship in the US combined.

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