A broad alliance of nearly 250 companies, labor unions, and industry organizations has called on top U.S. Senate Republicans to preserve the 45V tax credit for H₂ fuel projects as they negotiate President Trump’s tax and spending bill. The coalition, which includes the American Petroleum Institute, DuPont, and the International Brotherhood of Electrical Workers, is requesting an extension of the construction deadline to December 31, 2029.

Their appeal comes in response to the House’s recent decision to terminate the credit for projects beginning after 2025— a move that the group warns could divert tens of billions in private investment to foreign markets, particularly China. The letter stresses that extending the credit would promote domestic manufacturing, job creation, and clean energy development.

Previously, under the Inflation Reduction Act (IRA), H₂ projects were eligible for credits if construction began before 2033. Industry experts emphasize that clean H₂, produced through non-fossil sources or natural gas with carbon capture, is vital for decarbonizing sectors such as heavy industry and transportation. The letter’s signatories argue that continued support from lawmakers is essential for the growth and global competitiveness of the U.S. H₂ industry.

Source: Reuters

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