Don’t undercut Pennsylvania’s hydrogen opportunity | Opinion

By Jeff Kupfer

Pennsylvania has long played a central role in powering America. Today, the Commonwealth stands ready to lead once again—this time by helping to shape the future of clean hydrogen, a critical technology for delivering a cleaner, more sustainable future.

But that opportunity is now at risk. The recently passed House tax bill threatens to derail progress by abruptly phasing out many clean energy technology credits – including the Section 45V tax credit for clean hydrogen. Along with other credits, 45V has helped attract private investment, fuel innovation, and lay the groundwork for cutting-edge research and manufacturing jobs.

These tax incentives are building blocks for achieving American energy dominance and keeping energy affordable and reliable.

The House bill terminates Section 45V at the end of 2025 – eight years earlier than originally planned. Such a quick end to the incentive would not only slow progress toward a more diversified energy future but would also risk ceding ground to overseas rivals at a time when the country needs to be competitive and forward-looking.

This especially matters to Pennsylvania, which is uniquely positioned to benefit from 45V.

Energy workers already make up 4.6 percent of the state’s workforce, and the Commonwealth was the only state to secure two of the seven federally funded hydrogen hub contracts. The planned eastern Pennsylvania hydrogen hub – the Mid-Atlantic Clean Hydrogen Hub (MACH2) – aims to create and retain more than 20,000 well-paying jobs, including union jobs, and to generate a new talent pipeline in this emerging energy sector.

Hydrogen stands out as a commonsense, bipartisan solution. It’s a versatile energy source with near-zero emissions.

By pairing Pennsylvania’s abundant natural gas resources with growing carbon capture technology investments, the state can be at the forefront of developing what has been labeled “blue hydrogen.” That product will reduce emissions in heavy industrial sectors while also spurring economic growth. It’s a win-win.

This isn’t just speculation. According to a report from Citizens for Responsible Energy Solutions (CRES), an estimated 9.8 million metric tons per year of blue hydrogen capacity is in development across the United States. To highlight the scale, that amount of hydrogen – if used solely for electricity production – could power over 18 million homes. CRES calculates that the economic activity associated with blue hydrogen would generate billions in federal, state, and local tax revenue and over $12 billion in annual GDP.

Hydrogen projects can be a real differentiator, offering economic opportunities and income security for thousands of families in states like Pennsylvania. While reports that the administration could seek to cut down the number of hubs may put some projects at risk, preserving the Section 45V clean hydrogen production tax credit ensures that these regional centers of innovation, and their host states won’t lose momentum.

Realizing the potential of hydrogen will require upfront investments. Cutting the 45V prematurely removes the certainty businesses need to make these long-term bets. This is especially important because the global race on hydrogen is already in full swing.

China is currently the world’s leading hydrogen producer and is building an early lead in “green hydrogen” technologies. Russia and Saudi Arabia have also made key hydrogen commitments. If Congress rolls back support for clean hydrogen, we risk ceding our competitive edge.

The House officially named its tax package “The One Big Beautiful Bill.” There are many worthy provisions in that legislation, but the treatment of 45V and other clean energy tax credits is not one of them. As the Senate takes up the measure, let’s hope that our leaders recognize what’s at stake – and acts before the opportunity slips away.

Jeff Kupfer is a former acting deputy secretary of energy in the George W. Bush administration, is the president of ConservAmerica and an adjunct professor of policy at Carnegie Mellon University’s Heinz College.