Andrew Garbarino led a group of 21 Republican lawmakers to fighting to maintain clean energy, as well as hydrogen tax credits. These were established by the previous US administrator, under the Inflation Reduction Act (IRA).

Whilst rallying, the group made it clear that repealing these credits has the potential to seriously disrupt projects which are currently underway and it could also cause customer utility bills to increase. Further to this, the group also signalled potential opposition to the Republicans’ budget bill, especially if it includes the considered cuts to these incentives.

This news has come along after a letter arrived last month, addressed to the US congressional leaders. The letter emphasised the critical role of Section 45V tax credits, which focuses on driving the hydrogen industry and also placing the US in a position that can handle ‘global energy dominance.’

Through a letter, the House Republicans argued that the tax incentives are not only important, but are essential when it comes to achieving US energy dominance and so far it can be seen that they have attracted significant investments to their specific districts.

Right now, the 21 House Republicans have gathered and secured enough votes to be able to block any bill which has an aim to either weaken or repel the IRA. It is well-known that within the US House of Representatives, a bill requires a majority to pass and currently, if these lawmakers vote against this kind of bill, they would have the ability to prevent it moving forwards. This would still be applicable, even if the vote margin is slim.

It was on President Donald Trump’s first day in office when he decided to suspend funding from the IRA, as well as the Infrastructure Investment and Jobs Act (IIJA). These two acts were what offered production tax credits of a maximum of $3/kg, plus a combine $7bn of funding for seven hydrogen hubs, respectively.

Garbarino commented, “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. 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.”

A letter from a coalition of businesses and organisations representing the American hydrogen industry, added, “hamstrung by delays in regulatory guidance for this credit by the Biden Administration” over the past two and a half years. We need to ensure that we do not miss this hydrogen moment and respectfully request that you maintain the Section 45V tax credit.”

It has been mentioned that, ‘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.’