Canadian Hydrogen Association Advocates for Tax Credit Revisions
The Canadian Hydrogen Association is urging that projects using electricity from clean grids qualify for a 40% hydrogen tax credit. This adjustment could streamline administrative processes and enhance investment in hydrogen technologies.
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The Canadian Hydrogen Association (CHA) is advocating for projects utilizing electricity from grids with 90% clean generation to automatically be eligible for a 40% clean hydrogen investment tax credit (ITC). Currently, the CAD $5.6 billion ITC, enacted in 2024, stipulates that projects must source power from new, provincially-matched renewable assets.
CHA argues that in provinces with largely non-emitting grids like Quebec and British Columbia, such requirements add unnecessary complexity. The proposed changes could lower production costs and boost Canada's attractiveness for hydrogen investments.
CHA also suggested a CAD $100 million fund to advance hydrogen technologies. Canada has fewer than 10 operational clean hydrogen production projects despite significant federal and provincial targets.
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