President Donald Trump’s “One Big Beautiful Bill Act” could upend Louisiana’s clean hydrogen economy by eliminating a popular tax credit starting next year, The Center Square writes.
The Section 45V tax credit, created under the Inflation Reduction Act, has been a cornerstone incentive for major low-carbon hydrogen and ammonia projects statewide. CF Industries, Air Products and Plug Power are among the companies that have leveraged the credit to support billions in local investment.
The bill’s impact could be profound: 46 hydrogen and ammonia-related projects have committed to emissions reductions in Louisiana, including multibillion-dollar builds from Clean Hydrogen Works, Air Products, and Bia Energy. Losing 45V may erode their economic viability—though companies like CF say customer demand for low-carbon ammonia remains mixed, especially if prices rise.
The proposal would also shrink the Section 48 investment tax credit and sunset it earlier than planned, though it preserves the Section 45Q credit for carbon capture. That carbon capture credit could soften the blow for some, but if 45V is killed, Louisiana’s hydrogen boom may face a major recalibration.
