Legislative Update – U.S. Energy Tax Incentives
📢 Legislative Update – U.S. Energy Tax Incentives
On May 22, 2025, the U.S. House of Representatives passed “The One, Big, Beautiful Bill” (Bill) — legislation that proposes significant changes to energy-related tax incentives originally introduced under the Inflation Reduction Act.
➡️ Key Changes for Hydrogen:
❌ The Clean Hydrogen Production Tax Credit (IRC §45V) would be terminated for facilities that begin construction after December 31, 2025.
✅ The Clean Fuel Production Credit (§45Z) — supporting the production of low-carbon transportation fuels including hydrogen — would be extended from December 31, 2027, to December 31, 2031.
☑️ What’s Next?
- The Bill now moves to the Senate, where further amendments are expected.
- Final passage timing remains uncertain — but August appears more realistic than the previously anticipated July 4 timeline.
➡️ Source: The “One, Big, Beautiful Bill” – Summary of Renewable Energy Tax Provisions