The US House of Representatives has passed the President Trump-backed tax and spending bill that plans to terminate the 45V clean hydrogen production tax credit.
Trump’s “One Big, Beautiful Bill” passed with a vote of 215–214 on party lines and will now head to the US Senate for further debates.
Centred on tax and spending cuts, the bill includes a motion to end the Section 45V hydrogen production tax credit from the Biden-era Inflation Reduction Act, which had been credited with catalysing the US hydrogen sector.
Under the bill, hydrogen projects that enter construction after 31 December 2025 will not be able to claim 45V, effectively gutting its long-term, widespread value.
Today projects are eligible to access up to $3/kg of hydrogen produced until 2033.
Many hydrogen industry proponents had hoped that Republicans representing districts that plan to host projects would rebel against the measure.
House Speaker Mike Johnson called the bill “once-in-a-generation” legislation, while Democrats pledged to use “every tool” to fight it.
Once in the Senate, the bill must pass by a simple majority of at least 51 votes. Republicans hold 53 seats, giving them a path to approval, but any internal opposition could complicate the outcome.
If amendments are made in the Senate, a conference committee would reconcile the differences, with the final version returning to both the House and Senate for a vote.
From there, the bill would make its way to President Trump’s desk for signing into law.
Since the bill was proposed, hydrogen lobbyists and proponents have issued stark warnings that any repeal or dilution of 45V could have a “chilling effect” on hydrogen.
The Fuel Cell and Hydrogen Energy Association (FCHEA), a US trade association, previously warned that such move would be a “catastrophic” step backwards.
“Our industry has tens of billions of dollars of investments ready to be unleashed across the country,” an industry letter to Republican House leaders stated. “However, should the Section 45V credit be prematurely eliminated, phased down, or have major provisions… removed, these investments and jobs will not come to be.”
