United States:
Start-up tax: The hydrogen economy in the USA (video)
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Taxes dominate the discussions about the transition to a
Hydrogen Economy in the United States. Although carbon prices
or a federal carbon tax seems politically unattainable and
in the current environment off the table, almost everyone else clean
Energy tax incentive seems to be under active
Discussion. Hydrogen proponents want to be sure that the
The hydrogen industry benefits from every new clean energy tax
Incentives can be offered and do not lose any existing taxes
Incentives. As the lobbyists advise, when you are not there
In the table at least make sure that you are not in the menu.
The Biden administration fired the starting weapon for the tax lobby
Season with its $ 2 trillion release on March 31, 2020
Infrastructure proposal entitled "The American Jobs
Plan ". The Treasury Department followed a week later
Release of the outline of the related tax by the Ministry
Provisions in its “Made in America Tax
Plan. "No piece contained technical details,
Special features or suggested legal language – that will be
forthcoming when finance releases its "green"
Book "expected in early May.
However, hydrogen is clearly part of both plans: the American
The employment plan was for a 10 year extension of an expanded investment
Clean Energy Tax Credit (ITC) and Manufacturing Tax Credit (PTC)
Generation and storage, a revised and expanded section 45Q tax
Credit for carbon capture and sequestration and a new PTC for
Hydrogen projects in needy communities; and the done
In America, the tax plan repeated these concepts, including more specific ones
References to tax incentives for electricity storage projects and
the tax credit program for advanced energy projects (intern
Revenue Code Section 48C).
Currently, the US federal tax incentives are with specific
Application to hydrogen-related projects include:
- One ITC corresponds to 30 percent of the investment costs for fuel cells
Power plants for generating electricity (Section 48) - An ITC equal to 30 percent of the investment costs for the qualification
advanced energy projects (although due to the depletion of
Allocated funds for this loan comes in handy
currently not available) (Section 48C) - A credit to individual taxpayers for housing costs
Fuel cells (Section 25D) - A tax credit offered to buyers of alternative fuel vehicles
(Section 30B) - One ITC is equal to 30 pieces the cost of an alternative fuel vehicle
Refueling Property (Section 30C) - Excise tax credit for the sale of liquid hydrogen fuel (Section
6426) - Relevant for blue hydrogen, a tax credit per tonne of carbon
Oxide captured and bound (Section 45Q).
So what tax incentives that affect hydrogen are
discussed and are possibly now on the table?
- Increases the quantity, duration or availability of the existing ones
Tax incentives listed above. For example the current section 45Q
The carbon capture tax credit is available for a period of 12 years from the
Date when the facility was commissioned. Certain suggestions would
extend this term to 20 years or maybe longer. Other suggestions
the amount of credit and that would increase and increase
Taxpayers to whom such loans would be available (e.g. MLPs)
A noticeable proposal is to convert the tax credits for clean energy into
"Direct Pay" credit; d. H. Credits that are treated as
Payment of taxes so that, to the extent that they exceed that
Taxpayers Taxpayers would result in a cash payment
to the taxpayer. This is not necessary with a direct wage credit
have a tax liability to capture the value of
Recognition. - A PTC for hydrogen that could take the form of a loan
Production of hydrogen generally defined, a credit for the production of
Hydrogen is limited to the production that is used in a fuel or energy
Storage capacity or credit for power generation
using hydrogen (similar to the PTC, which is currently heavily used
the wind industry). - Extension of section 48 ITC to include energy storage devices that
would include hydrogen storage. - An additional or extended ITC in relation to the costs incurred
Retrofit natural gas lines and tanks to accommodate hydrogen
Transport and Storage. - Biden's American employment plan contained a specific reference to
a "new production tax credit" for hydrogen plants
located in "desperate" communities that could be
defined to include rural areas in need of investment. It stays closed
to see exactly what such a new PTC would look like
Use tax rules as an incentive to invest in distressed assets
Communities is a well paved road in Congress, both in terms of
Definition of "hardship" and the nature of the required
Investment (see for example the tax deferral and tax reduction
Rules for investing in "Opportunity"
Zones "in the United States).
The implementation of all or some of these suggestions is by no means a
refrained from drawing any conclusions about partisan policy and spending restrictions
destroy the hopes of the hydrogen industry. Nevertheless
Risk, participants in the hydrogen industry, their representatives,
Associations, councils and lobbyists are pursuing them
Develop these tax rules to do what they can to ensure
that they are at the table and not on the menu.
Hydrogen tax incentive discussions in HE newsletters will follow
Follow-up and follow-up will follow in the following months
that follows as it follows when it follows.
The content of this article is intended to provide a general overview
Guide to the subject. Expert advice should be sought
about your particular circumstances.
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