Biden Administration's Hydrogen Tax Guidelines Stir Controversy

While environmental advocates praise the strict stipulations for clean energy use, moderate Democrats argue the rules could hinder industry growth.

The Biden administration has proposed new tax guidelines for the hydrogen energy industry, sparking controversy among different stakeholders.
The guidelines include strict stipulations around using newly constructed sources of clean energy to produce hydrogen, as opposed to more polluting sources.
Moderate Democrats, including Senator Joe Manchin, have criticized the proposal, arguing it is too restrictive and could hinder the growth of the hydrogen industry.
Environmental advocates, however, have praised the guidelines, arguing they are necessary to ensure the hydrogen industry does not inadvertently increase pollution.
The proposal is now open for public comment for two months, after which the Treasury Department and IRS will consider feedback before finalizing the rules.