EDF Slams Repeal of 45V Hydrogen Credit, Citing $32Bn in Higher Household Energy Costs and Job Losses

• Environmental Defense Fund (EDF) warns that removing the 45V hydrogen tax credit could cost households an additional $32 billion over the next decade, severely harming economic growth and employment.

• Analysis reveals the repeal could result in GDP losses up to $190 billion and eliminate up to 700,000 US jobs by 2035.

EDF has sharply criticized President Trump’s proposed repeal of the Inflation Reduction Act’s (IRA) Section 45V hydrogen production tax credit, warning it will cause a massive surge in household energy costs, damage economic growth, and eliminate hundreds of thousands of jobs.

Following the narrow 215-214 passage in the US House of Representatives of President Trump’s "One Big, Beautiful Bill," the EDF condemned the move, stating it undermines "an American-made energy boom while raising costs for businesses and families and increasing harmful pollution in communities across the country."

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Detailed analysis by Energy Innovation underscores the severe consequences of a full repeal, forecasting an increase in cumulative household energy costs by $32 billion over the next decade and the addition of over 550 million tonnes of climate pollution. Furthermore, the repeal threatens to decrease US GDP by over $160 billion in 2030, rising to nearly $190 billion by 2035, potentially resulting in the loss of as many as 700,000 jobs nationwide.

States leading in hydrogen and clean technology projects, including Texas, California, Pennsylvania, Florida, and Georgia, face the most significant negative impacts due to combined job losses and rising household energy expenses.

Joanna Slaney, Vice President for Political and Government Affairs at the EDF, stressed: This bill is an ugly mess for companies and workers, families and communities.

The repeal also would dramatically limit the ability of new energy projects to come online. The US needs clean energy to meet growing demands, and solar and storage are adding energy to the grid faster than all other sources combined.

Slaney emphatically added, There’s nothing beautiful about it, directly referencing Trump’s bill.

According to the proposal, any hydrogen project starting construction after December 31, 2025, would lose eligibility for the 45V credit, effectively undermining its long-term value. Currently, the credit offers up to $3 per kilogram of hydrogen produced through 2033.

Industry leaders and hydrogen proponents have echoed EDF’s concerns, warning of a potentially devastating chilling effect on hydrogen sector growth should this repeal proceed.