A leaked draft of Treasury Department rules for hydrogen tax credits in President Joe Biden’s climate law is drawing warnings from advocates for the fuel that they may stifle the burgeoning industry before it takes shape.
The rules, which aren’t finalized, include measures sought by environmentalists that would require hydrogen production operations to be powered by wind, solar or other clean-power projects built within the last three years to qualify for a $3-per-kilogram credit, according to people familiar with the draft. Some of the details of the tax guidelines were reported earlier by Politico.
