A group of 21 Republican lawmakers, led by congressman Andrew Garbarino, have rallied to maintain clean energy and hydrogen tax credits established under the Inflation Reduction Act (IRA) by the previous US administration.
In a letter shared with Politico, the House Republicans argued that the tax incentives are essential for achieving US energy dominance and have attracted significant investments to their districts.
The group has cautioned that repealing these credits could disrupt ongoing projects and increase customer utility bills. Furthermore, they’ve signalled potential opposition to the Republicans’ budget bill if it includes cuts to these incentives.
The 21 House Republicans have enough votes to block any bill that aims to weaken or repeal the IRA. In the US House of Representatives, a bill needs a majority to pass, and if these lawmakers vote against such a bill, they could prevent it from moving forward, particularly if the vote margin is slim.
Speaking to Politico, Garbarino reportedly said, “We have 20-plus members saying, ‘don’t just think you can repeal these things and have our support.
“We need the projects that are currently under development to be brought online so we can continue the President’s ‘American First’ agenda. These [credits] are helping the President accomplish what he said he wanted to do in his campaign, and that was to make America an energy dominant country.”
Garbarino continued, “Full repeal right now of energy tax credits would be a disaster for what companies have paid for, for what we’ve already invested in with taxpayer dollars.
“Even starting to phase them out would end up making a project moot.”
The news follows a letter addressed to US congressional leaders last month, which highlighted the critical role of Section 45V tax credits in driving the hydrogen industry and positioning the US for “global energy dominance.”
Sent by a coalition of businesses and organisations representing the American hydrogen industry, the letter claimed the sector has been “hamstrung by delays in regulatory guidance for this credit by the Biden Administration” over the past two and a half years.”
It added, “We need to ensure that we do not miss this hydrogen moment and respectfully request that you maintain the Section 45V tax credit.”
On President Donald Trump’s first day in office, he suspended funding from the IRA and the Infrastructure Investment and Jobs Act (IIJA), which offered production tax credits of up to $3/kg and a combined $7bn of funding for seven hydrogen hubs, respectively.
It was announced the acts will have their processes, policies and programmes for issuing funds reviewed, with department heads expected to issue recommendations to “enhance their alignment” with Trump’s oil and gas focus.
Analysis: What does Trump’s IRA and IIJA funding suspension actually mean for hydrogen?
President Donald Trump’s suspension of funding from two key pieces of Biden-era laws has cast uncertainty over the future of clean hydrogen development.
On his first day in office, Trump issued an executive order to halt further funding from the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA).
Findings and recommendations must be submitted to the National Economic Council (NEC) and the Office of Management and Budget (OMB) within 90 days of the executive order.
Trump’s stated commitment to expanding US oil and gas production to bolster manufacturing and reduce energy costs casts uncertainty over the future of the IRA and IIJA, particularly their clean energy provisions.
And hydrogen producers, infrastructure developers and exporters find themselves in limbo.
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