Dec 5, 2024
The United States Hydrogen Alliance (USHA) recognizes the U.S. Department of the Treasury and IRS's release yesterday of final rules for the Section 48 Energy Credit (Investment Tax Credit, ITC) as a critical step in providing clarity and certainty for clean energy project developers, particularly those advancing clean hydrogen technologies.
Sacramento, CA – The United States Hydrogen Alliance (USHA) recognizes the U.S. Department of the Treasury and IRS's release yesterday of final rules for the Section 48 Energy Credit (Investment Tax Credit, ITC) as a critical step in providing clarity and certainty for clean energy project developers, particularly those advancing clean hydrogen technologies.
The ITC has played a vital role in spurring U.S. clean energy development by providing tax credits for investments in qualifying energy projects. The Inflation Reduction Act extended this credit until 2025, with a transition to a tech-neutral approach that will ensure support for projects beginning construction at least through 2033. The final rules, informed by extensive public feedback, clarify key definitions and criteria, reducing uncertainty for developers and investors in clean energy.
One notable clarification in the final rules pertains to hydrogen storage. The Treasury Department and IRS confirm that hydrogen energy storage technology qualifies for the Section 48 Investment Tax Credit (ITC) if it meets the requirements of Section 48, even when co-located with or shared by facilities eligible for other clean energy credits such as Section 45, 45V, or 48. This clarification reinforces the versatility of hydrogen as an energy carrier and enables broader deployment of clean hydrogen storage solutions to support the energy transition.
“This final guidance provides needed certainty for hydrogen developers and investors,” said Roxana Bekemohammadi, Founder and Executive Director of the United States Hydrogen Alliance. “The ability to claim the ITC for hydrogen storage represents an important step in scaling clean hydrogen infrastructure, which will play a crucial role in decarbonizing industries, enhancing energy security, and creating new economic opportunities across the United States.”
The United States Hydrogen Alliance actively supports state and federal policies that promote clean hydrogen development, deployment, and utilization. This guidance aligns with USHA’s mission to leverage hydrogen’s unique attributes to reduce emissions, diversify energy resources, and enhance local economies and workforces.
USHA encourages its members and stakeholders to review the new rules to explore how they may impact current and future projects. As part of its commitment to the hydrogen industry, USHA will continue to provide updates and insights to ensure its members are informed and prepared to capitalize on opportunities presented by these new guidelines.
For more information on the 48 ITC guidance, please visit the U.S. Department of Treasury's website.
About the United States Hydrogen Alliance (USHA):
The United States Hydrogen Alliance is a 501 (c)(6) non-profit association of members advocating for the development, deployment and utilization of clean hydrogen in all 50 states. We serve the hydrogen industry through state and federal policy advocacy, market development, and community building. Our mission is to leverage the unique attributes of hydrogen to reduce emissions across traditional sectors, increase energy resiliency and diversity, enhance local economies and workforces, and protect the nation domestically and abroad.
Press Contact:
Lexi Schnell