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White House Strangles Hydrogen Industry Growth with Overreaching Tax Credit Restrictions

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In a move that could stifle innovation and economic growth, the White House, Treasury Department, and Department of Energy jointly released guidance on Friday morning, imposing stringent restrictions on hydrogen power development eligible for federal tax credits. The proposed guidance, tied to the 2022 Inflation Reduction Act’s highest production credit of $3 per kilogram of hydrogen, is seen by critics as an attempt to align with green energy standards at the expense of economic considerations.

According to reports from Fox News, opposition to the restrictions comes from business and clean power industry groups, arguing that the measures could deter investment, increase hydrogen costs, and unfairly discriminate against existing low-carbon power sources. Critics view the move as a departure from the market-driven approach that encourages growth and innovation.

Moreover, despite the administration’s claims that the hydrogen tax credit will foster a cleaner industry, skeptics point to potential economic ramifications. John Podesta, President Biden’s clean energy czar, and Energy Secretary Jennifer Granholm have lauded the move as a step towards global clean energy leadership, but critics argue that such measures risk stifling job creation and economic opportunity.

The proposed regulations, with a 10-year availability for tax credits ranging from $0.60 to $3 per kilogram, raise concerns about government overreach in dictating industry standards. Critics argue that the administration’s insistence on strict regulations could hinder the hydrogen industry’s ability to provide meaningful alternatives for hard-to-decarbonize sectors and reach competitive market prices.

As opposition mounts from industry groups and Senate Democrats, who advocate for a more gradual approach, the clash over hydrogen tax credits underscores the ongoing struggle to balance environmental objectives with economic considerations in the clean energy sector.

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China

Electric Vehicle company with Chinese ties awarded $500 million of taxpayer money for 2nd U.S. plant

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With a little help from their Democrat friends, a Chinese electric vehicle (EV) battery company with ties to the Chinese Communist Party just announced the opening of its second plant in the United States.

Fox News reports Gotion Inc., whose parent company Gotion High-Tech is based in Hefei, China, unveiled plans to build a $2 billion lithium battery plant in Manteno, Illinois, alongside Democratic Gov. J.B. Pritzker, who cheered the project.

The announcement comes amid growing opposition to the company’s plans to build a billion-dollar factory in Mecosta County, Michigan.

In order to make the expansion happen, lobbyists for the Chinese Communist Party-tied electric vehicle company funneled cash to Democrats. “Individuals at a law firm registered as foreign agents to lobby on behalf of Gotion, a Chinese electric vehicle battery company developing a controversial project in Michigan, and wired campaign contributions to several top Democrats” reports Fox News.

“According to state and federal filings, Monique Field-Foster, an attorney at the Lansing office of the Warner Norcross + Judd law firm who is acting as a foreign agent on behalf of Gotion, donated to the campaigns of Democratic Gov. Gretchen Whitmer, Whitmer’s sister Liz Gereghty and Michigan Democratic Senate hopeful Rep. Elissa Slotkin” the Fox News report continued.

“In partnership with the business community and the General Assembly, two years ago we set out to make Illinois a destination for electric vehicle and clean energy companies from across the globe,” Pritzker said in a statement.

“With the right incentives, nation-leading infrastructure, world-class workforce and booming clean energy production, we have transformed ourselves into an attractive location for global manufacturers. Today, we take another leap forward. It’s my pleasure to welcome Gotion to Illinois and to show the world yet again that Illinois is ready to be a player on the world stage.”

Pritzker delivered remarks late last week thanking Gotion for choosing Illinois to call “home” in a ceremony with leaders from Gotion High-Tech, including Li Zhen, the company’s chairman and president, who said he expected the factory to open in less than 12 months.

“All that we see here [in Illinois] are of enormous value to us: an enabling business environment, a supportive state government for the new energy industry and their highly efficient work, as well as the prospects of the State of Illinois in the coming years,” the Gotion president added. “We believe that Gotion’s battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the U.S.”

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