Utah's Hydrogen Leadership at Risk as Senate Considers Cutting 45V Tax Incentive
Key Insights
The U.S. House has passed a bill eliminating the 45V clean hydrogen tax incentive, threatening Utah's emerging hydrogen economy.
Utah's geological advantages and pro-business policies position it as a potential hydrogen hub, with projects like the Intermountain Power Project transitioning to hydrogen.
Without the 45V incentive, early-stage hydrogen projects may become economically unviable, risking thousands of high-paying jobs and U.S. competitiveness.
Global competitors like China and the EU are investing heavily in hydrogen, while U.S. policy uncertainty could drive investment abroad.
The U.S. House recently passed a bill that could derail America’s burgeoning hydrogen economy by eliminating the 45V clean hydrogen tax incentive. This move, buried within the sprawling "One Big Beautiful Bill Act," threatens to undermine Utah’s strategic efforts to become a national leader in hydrogen production and storage. The Beehive State’s vast salt caverns and the Intermountain Power Project’s transition to hydrogen integration highlight its potential, but without federal support, these initiatives may stall.
Hydrogen, already a $150 billion global market, is poised for exponential growth, with Bloomberg projecting a thirtyfold increase by 2030. The 45V tax credit provides a critical 10-year runway for domestic hydrogen production to scale, positioning the U.S. to capture 37% of global demand. Utah’s unique geological features and pro-business environment have attracted major players like Chevron and Mitsubishi, who are eyeing the state for large-scale hydrogen projects. These ventures promise thousands of high-paying jobs and a diversified energy portfolio.
However, the House’s decision to gut the 45V incentive has cast a shadow over these plans. Policy uncertainty is already causing companies to pause billion-dollar investments, with some considering relocating to jurisdictions like Canada or Europe, where hydrogen subsidies are expanding. Republican senators, whose states stand to benefit most from hydrogen development, now face a pivotal choice: restore the incentive or cede leadership to global competitors.
China and the EU are not waiting. China has committed $17 billion to hydrogen technology, while the EU’s €470 billion hydrogen strategy underscores its ambition. The U.S., meanwhile, risks squandering its natural gas and technological advantages. Blue hydrogen, produced with carbon capture, exemplifies this potential, offering a cleaner bridge to a hydrogen-powered future.
Utah’s Strategic Energy Plan explicitly identifies hydrogen as a cornerstone of its energy diversification. The Wasatch Front’s industrial corridor is primed to become a hydrogen hub, linking production to transportation networks. But without the 45V incentive, these plans may falter. The Senate’s decision will determine whether America leads the next energy revolution or watches from the sidelines.