House Republicans Look to Axe US 45V Clean Hydrogen Tax Credit

House Republicans are seeking to axe the US’ clean hydrogen production tax credit, a measure once hailed as transformative for the industry, in a sweeping attempt to slash Biden-era clean energy funding.

The House Ways and Means Committee set out a proposal that would gut clean energy tax credits, and electric vehicle and renewable energy funding from the Biden Administration’s Inflation Reduction Act (IRA) to save $6.5bn. It comes under the so-called “One Big, Beautiful Bill” aimed at extending tax cuts under the previous Trump Administration.

Within the proposal is the termination of clean hydrogen production credit, which aims to roll back the credit’s expiration from 2033 to 2026, effectively gutting its long-term value.

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The proposal is due to be voted on today (13 May).

45V had been hailed as a measure that would catalyse clean hydrogen production in the US by offering producers up to $3/kg of hydrogen.

According to gasworld’s H2 Intelligence, between Q2 2022 and Q4 2024, planned blue and green hydrogen production capacity increased 247% from 5.34 million tonnes per year (mtpa) to 18.53 mtpa.

Despite criticisms that the criteria surrounding renewable energy supply and upstream methane emissions were too stringent, industry is already rallying supporters to challenge the proposal.

“We urge all hydrogen supporters to contact members of the House Ways and Means Committee immediately to advocate for preserving the full value of the 45V credit,” the US Hydrogen Alliance posted on LinkedIn.

Previously, lawmakers on both sides of the aisle had called for the IRA’s clean energy and hydrogen tax credits to be retained.

In March, a group of 21 Republicans – enough to block any bill aiming to weaken or repeal the IRA – warned that changes could disrupt ongoing projects and increase customer bills.

Congressman Andrew Garbino
We need the projects that are currently under development to be brought online so we can continue the President’s ‘American First’ agenda. These [credits] are helping the President accomplish what he said he wanted to do in his campaign, and that was to make America an energy dominant country.

Since the IRA’s passage in 2022, developers had faced a long period of limbo until final rules were approved in January 2025.

Various players said those delays were hampering final investment decisions (FID) and industry progress. If removed, it is likely to massively dampen clean hydrogen activity in the US.

It may also force more developers to look towards blue hydrogen (fossil fuel-based with carbon capture) production; however, a tax credit expanded by the IRA for carbon sequestration could also be changed.

In the proposal, Republicans are looking to limit the scope of the 45Q credit to exclude “foreign” or “foreign-influenced” entities.

The measures come as the Trump administration looks to drive forward with an agenda to bolster the US’ fossil fuel dominance.
The day President Donald Trump took office, he issued an executive order to suspend funding from the 45V while officials reviewed the legislation’s alignment with the administration’s plans.