The bill is expected to go to the Senate floor this week
US act would introduce credits for hydrogen production
Projects making clean hydrogen could get a tax credit of up to $3/kg if bill survives in current form
The US’ proposed Inflation Reduction Act of 2022 bill, announced last week, will extend tax credits for the hydrogen sector. Projects making clean hydrogen could get a tax credit of up to $3/kg if lifecycle CO₂ emissions are below 0.45kg per kg of hydrogen produced and if labour rules are met. Producers then receive less support on a sliding scale as the emissions intensity of their hydrogen production increases. Hydrogen manufacture that emits more than 4kg of CO₂ per kg of hydrogen produced will receive no support. The compromise ‘July surprise’ announced by Senate majority leader Chuck Schumer and West Virginia Senator Joe Manchin—both Democrats—sets aside $369bn to support climate initia
Also in this section
4 February 2026
Europe’s largest electrolyser manufacturers are losing patience with policymakers as sluggish growth in the green hydrogen sector undermines their decision to expand production capacity
2 February 2026
As a fertiliser feedstock, it is indispensable, but ammonia’s potential as a carbon-free energy carrier is also making it central to global decarbonisation strategies
28 January 2026
The development of hydrogen’s distribution system must speed up if the industry is to stand any chance of grabbing a meaningful slice of the low-carbon energy market
14 January 2026
Continent’s governments must seize the green hydrogen opportunity by refining policies and ramping up the development of supply chains and infrastructure
