New Hydrogen Tax Credit Rules Boost Clean Energy Stocks

The Treasury Department's finalized guidelines offer up to $3 per kilogram for clean hydrogen production, spurring investments across the energy sector.

• The U.S. Treasury finalized rules for clean hydrogen tax credits under the Inflation Reduction Act of 2022, providing clarity for producers and investors.
• The tax credit ranges from $0.60 to $3 per kilogram of hydrogen, depending on the project's carbon emissions, incentivizing low-emission hydrogen production.
• Shares of clean energy companies like Plug Power, Constellation Energy, and Nikola saw significant gains following the announcement of the new rules.
• The rules expand eligibility to include nuclear power plants and other energy sources, aiming to accelerate the adoption of clean hydrogen in high-emission industries.
• Industry leaders anticipate the revisions will drive economic growth, scale up hydrogen infrastructure, and position the U.S. as a global leader in green hydrogen technology.

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