Colorado: Tax credits for clean hydrogen in hard-to-abate sectors

Country / jurisdiction: United States · Year: 2023 · Status: In force · Level: State/Provincial · Type: Voluntary

Tax credit of up to USD 1/kg for hydrogen under 1.5 kg CO2-eq/kg H2 for clean hydrogen used in hard-to-abate sectors (e.g. heavy-duty vehicles, aviation, industrial heating for uses of at least 150 C, feestock). By December 2024, the public utilities commission should adopt rules that establish clean hydrogen requirements. Credit is up to 250 kUSD in a tax year. The state Public Utility Commission will be required to develop accounting standards that will go into effect in 2028, or after 200 MW of electrolyzers have been successfully deployed in the state, whichever comes first. Additionality: renewable (or zero-carbon generation) should have entered into operation no more than 3 years before the hydrogen production starts. Temporal correlation: Hourly

Official source: https://leg.colorado.gov/bills/hb23-1281