As stated above, the IRS is expected to release its draft guidance early this summer, with its final guidance due in mid-August. However, note that on April 26, Republicans within the United States House of Representatives passed the Limit, Save, Grow Act of 2023, which would significantly scale back the federal support of renewable energy and energy storage enabled by the IRA.

Specifically, this bill modifies tax credits for renewable and clean energy, energy-efficient property, alternative fuels, and electric vehicles, while including various provisions to expand the development of energy resources such as oil, natural gas, and minerals. Although this bill narrowly passed the House of Representatives, it is neither expected to pass the Senate because Democrats maintain a narrow majority of seats, nor is it expected to be signed into law by President Joe Biden if it passes Congress.

Nonetheless, accurately evaluating how hydrogen producers using grid-powered electrolyzers are procuring clean electricity to offset the emissions associated with grid use is critical to ensure that the credit is applied to projects in the way intended by Congress.