Repealing 45V Hydrogen Tax Credit Could Undermine Billions in U.S. Clean Energy Investment, EDF Warns

The Environmental Defense Fund (EDF) and Energy Innovation are sounding the alarm over a U.S. House bill that passed on May 23, 2025. The bill takes aim at repealing the 45V hydrogen production tax credit—a major clean energy incentive created under the 2022 Inflation Reduction Act (IRA). Right now, that credit offers producers up to $3 per kilogram of clean hydrogen until 2033. Scrapping it, they say, could put a serious dent in the future of green hydrogen and cut off a pipeline of $150 billion in private investment.

States like Texas and California could take the biggest hit

If the tax credit goes away, the fallout wouldn’t be spread evenly. According to EDF, states leading the charge on hydrogen infrastructure—like Texas, California, Florida, Pennsylvania, and Georgia—could see projects grind to a halt. Companies might even look overseas where hydrogen markets are booming, particularly in places like the EU, Japan, and China. That would not only stall local job growth and clean energy infrastructure—it could also throw a wrench in the U.S.’s ability to stay competitive in the global hydrogen production space.

Policy stability isn’t optional—it’s critical

EDF and Energy Innovation aren’t just worried about dollars and cents—they’re concerned about momentum. Long-term hydrogen projects need stable policy commitments to get off the ground. Constant changes in the rules can shake investor confidence, slow cost reductions, and make it harder to scale up the green hydrogen technologies the country needs for industrial decarbonization.

Bottom line? Walking back the 45V tax credit now could seriously set back the country’s progress toward its climate goals—and risk handing the reins of hydrogen innovation to other countries willing to double down on clean energy investment.