Hydrogen - Taxpayers for Common Sense

Hydrogen can be produced from a range of sources—including natural gas, coal, solar, and wind—and used in fuel cells to generate electricity, power, and heat. In recent years, the federal government has expanded subsidies for hydrogen, including significant investments in research and development (R&D) and the 45V production tax credit.

But not all hydrogen is created equal. Production methods vary widely in cost and risk for taxpayers. Over-incentivizing hydrogen risks inflating electricity prices or boosting demand for natural gas—undermining efforts to support low-emission energy solutions. With hydrogen production, transport, and storage technologies still in early stages of development, concerns remain about scalability, cost-effectiveness, and unintended consequences. Policymakers must ensure that federal subsidies don’t backfire—burdening taxpayers, raising consumer costs, or expanding fossil fuel infrastructure.