US Hydrogen Cars Sees New Tax Guidelines for Clean Cars, but Experts are Torn

Electric vehicles are the massive focus of the transportation industry now, but there is also a surmounting move towards clean hydrogen, with this centering on alternative fuel for cars in the future. The recent update centers on the US government, particularly the Biden Administration's latest proposed tax guidelines to make clean hydrogen cheaper to produce.

It also focuses on the new tax credits that will come along with it, one that will open up better opportunities for clean hydrogen car adoption in the country.

US Hydrogen Cars See New Tax Guidelines from POTUS Biden

The United States Department of Treasury and the IRS unveiled their latest guidance on clean hydrogen production, with these new tax guidelines looking to drive more of the country's patronage of this alternative transportation.

Its new proposal that centers on the 'Clean Hydrogen Production Credit' under the Inflation Reduction Act is part of President Joe Biden's Investing in America program, centered on combating the climate crisis.

It centers on new tax credits that will help the hydrogen industry flourish, but it was regarded by The Verge to have 'strict stipulations' in this new source of clean energy. The main focus of hydrogen is through its process of combustion, and instead of releasing carbon emissions like fossil fuels used in traditional ICEs (internal combustion engines), it will release water vapor.

Experts Are Torn in Hydrogen Cars for US

However, some experts and groups are torn in the use of hydrogen for cars, especially as there are claims regarding the production of hydrogen to be also pollutive, increasing it instead of helping stem the problem.

Another focus of the reactions from groups centers on restrictive guidelines that may lead to clean hydrogen production to its demise.

Hydrogen Cars Now

The main goal for the transportation industry now is to effectively remove its carbon emission contributions to the worsening climate of the world, and this is why electric vehicles have seen a massive focus in recent times. However, it was recently discovered in a study that EV owners drove fewer miles compared to gas-powered cars, from samples between 2016 to 2022.

A new focus on hydrogen is looking to still center on combustion engines, but make it more environmentally friendly and emit less carbon footprints. There was one study before that looked into a retrofit for diesel engines to run on 90 percent hydrogen, set to improve its emissions and remove its polluting factors.

On the other hand, several Japanese automakers are also looking to debut their hydrogen-powered cars soon, with Toyota's Corolla Cross hydrogen concept alongside the 2024 Honda CR-V.

Clean energy without the batteries to power the drivetrain and motor, still using a combustion engine but requiring hydrogen fuel cells is something that is also gaining traction now. The US government and the Biden Administration are on board this, with the new proposition of tax guidelines looking to credit those who will manufacture and purchase these clean-energy cars, but have torn responses from experts.