Plug Power Inc., a global leader in comprehensive H₂ solutions for the green H₂ economy, boosted its liquidity by approximately $30 MM through the transfer of the Federal Investment Tax Credit (ITC) on January 24, 2025, to a major investor with a strong track record of purchasing comparable credits. The $30-MM ITC transfer represents Plug's first use of the transferability rules under the Inflation Reduction Act (IRA) of 2022 and is among one of the first transfer deals for H₂ storage and liquefaction assets.

Under the IRA, facilities like Plug’s plant in Woodbine, Georgia that produce, liquify, and store green H₂ can claim the Section 45V Production Tax Credit (PTC) for green H₂ produced as well as the ITC on the H₂ storage and liquefaction assets at the facility. Plug secured the ITC through its investment in liquefaction and storage technologies at its green H₂ plant in Woodbine, Georgia, which began production in early 2024. This development builds on Plug’s announcement in June 2024 of utilizing the PTC at its Woodbine, Georgia facility—allowing the company to benefit from both the PTC and ITC.

The IRA introduced new tax credits for H₂ storage and liquefaction assets, as well as provisions for transferring certain previously non-transferable tax credits. These changes enable businesses to better monetize their tax credits and simplify financing processes.

“Plug is leveraging tax credit transferability to offset a portion of our investment in our H₂ plants, which will provide liquidity and reduce future fuel costs,” explained Plug CFO Paul Middleton. “This transaction represents a key non-dilutive balance sheet leverage opportunity and sets the stage for future ITC monetization opportunities as we continue build out our green H₂ ecosystem.”

“We’re excited to have launched the largest liquid green H₂ facility in the U.S. and to start leveraging these benefits put in place to advance the industry,” said Plug CEO Andy Marsh. “Tax credits like these propel us towards green H₂ expansion, energy independence, and significant job growth—shared goals with Plug, the industry, and the U.S. government. We look forward to continuing our collaboration with policymakers to drive innovation and progress in the energy transition."

This transaction highlights Plug's strategic use of the new tax credit transferability provisions under the IRA and highlights the IRA’s role in fostering clean energy investments.