Heinrich Welcomes Strong Treasury Guidance on 45V Clean Hydrogen Tax Credit
WASHINGTON – U.S. Senator Martin Heinrich (D-N.M.), a member of the Senate Energy and Natural Resources Committee, released the following statement welcoming the U.S. Department of Treasury’s guidance for implementing the Section 45V Clean Hydrogen Production Tax Credit in the Inflation Reduction Act.
“Hydrogen is a climate solution only when it helps reduce carbon emissions. Treasury’s guidance gets the balance right, correctly aligning with the framework I had in mind when I authored the Clean Hydrogen Production Incentives Act that served as the basis for the 45V Tax Credits in the Inflation Reduction Act.
“To fully achieve a clean energy transition, we need tools that help us decarbonize hard-to-abate industries like shipping, aviation, and steelmaking. That’s where hydrogen is critical. But it cannot become a lifeline for more fossil fuel production.
“Treasury’s strong standards will ensure that the American hydrogen production industry we build out will be a genuine climate solution.”
Background:
In October, Heinrich joined U.S. Senators Sheldon Whitehouse (D-R.I.), Jeff Merkley (D-Ore.), Peter Welch (D-Vt.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Cory Booker (D-N.J.), and Ed Markey (D-Mass.) in sending a letter to U.S. Treasury Secretary Janet Yellen and Treasury Climate Counselor Ethan Zindler urging strong standards in Treasury’s guidance on the 45V Clean Hydrogen Production Tax Credit.
In their letter, the senators urged Secretary Yellen to adhere closely to congressional intent and design standards around three broad principles, known as the three pillars – additionality, deliverability, and time-matching – to ensure the tax credit incentivizes hydrogen produced cleanly using zero-carbon electricity sources.
In 2021, Heinrich introduced the Clean Hydrogen Production Incentives Act, which was the basis of the language that became Section 45V Clean Hydrogen Production Tax Credit in the Inflation Reduction Act.
