The U.S. Senate has entered a critical phase in shaping the House-passed One Big Beautiful Bill Act (H.R. 1), a $3.8 trillion budget reconciliation package. Lawmakers aim to complete Senate revisions before the July 4 recess, with particular attention focused on clean energy tax incentives, including the clean hydrogen production credit, known as 45V.
Under provisions approved by the House, 45V, which offers approximately $3/kg to qualifying clean hydrogen producers, is slated to sunset after 2025. More than 275 industry leaders, including the Fuel Cell & Hydrogen Energy Association, American Gas Association, and American Petroleum Institute, issued a unified plea on June 5 urging Senate Republicans to extend Section 45V through at least 2029. They argue that termination risks moving tens of billions in investment overseas.
“With political clarity and investment certainty, the 45V credit can catalyze tens of billions in private capital, revitalize domestic manufacturing, and create stable, long-term employment in construction, operations, and technology innovation. This is an unprecedented opportunity to build a modern energy workforce that is rooted in American talent and ingenuity,” wrote the group.
Analysts, such as the Rhodium Group, warn that repealing or slashing energy credits could stall up to $522 billion in planned investment and put hundreds of thousands of clean energy jobs at risk.
“The energy-related tax credits form a portion of the broader tax bill debate that will take place in the Senate in the coming weeks, but the fate of those credits has important implications for continued US clean manufacturing growth, investment, energy innovation, and energy affordability,” reads the Rhodium Group report.
Senate leaders intend to circulate a revised version of the bill this week, with a final vote expected by or before July 4. The coming Senate-shaped version will be sent back to the House for reconciliation before heading to the President.
