Biden Administration Finalizes $3/kg Hydrogen Tax Credit, Includes Nuclear Power Amid Environmental Controversy

Jan 3, 2025, 02:56 PM

The Biden administration has finalized rules for a tax credit worth billions of dollars aimed at boosting domestic hydrogen production. The new guidelines expand eligibility for the credit to include hydrogen produced using nuclear power, natural gas with carbon capture technology, and methane from waste sources. The tax credit, offering up to $3 per kilogram, was adjusted following intense Washington lobbying by companies arguing that the initial stringent safeguards would hinder domestic manufacturing of hydrogen. The rules provide a pathway for existing nuclear power plants to access the credits, a move that has been controversial among some environmental groups who argue that only new clean energy sources should qualify for the subsidy.