Overview
- 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.