The Biden administration once again is reaching deeper into the pockets of taxpayers to fund billions of dollars in tax credits to hydrogen producers.
Details of the plan were laid out Friday as the government wants to get behind a big push to build the industry as a cleaner alternative to fossil fueled power. The program of credits is also described as sthe most generouos in the world for hydrogen prodution reported the Associated Press.
The funding is part of the Democrats’ Inflation Reduction Act passed last year, one that identifies which hydrogen producers get the most credits. The administration contends the hydrogen production credits will deliver $140 billion in revenue and create 700,000 jobs by 2030.
Energy Deputy Secretary David M. Turk spoke with reporters a day before the formal announcement was made telling them, “That’s equivalent to the amount of energy currently used by every bus, every plane, every train and every ship in the US combined.”
What kind of tax credits are we talking about? The AP reported that under the Biden plan, companies that produce cleaner hydrogen and meet prevailing wage requirements could qualify for a large incentive at $3 per kilogram of hydrogen. Those companies that produce hydrogen using fossil fuels will receive smaller credits and the credits range from 60 cents to $3 per kilo.