The bill, H.B. No. 5600, aims to promote the development of the clean hydrogen industry in Texas through various incentives, including tax benefits, loans, and grants. It establishes a Clean Hydrogen Development Fund, which will be administered by the comptroller in consultation with relevant state agencies. The fund will support clean hydrogen projects, workforce development, and the manufacturing of hydrogen-related technologies. The bill defines "clean hydrogen" and outlines the criteria for what constitutes a clean hydrogen project, including facilities for production, storage, and transportation of hydrogen, as well as equipment for carbon capture.

Additionally, the bill introduces a Clean Hydrogen Workforce Development Grant Program to support educational institutions in training and developing curricula related to clean hydrogen jobs. It also includes tax exemptions for hydrogen-powered vehicles and manufacturers of hydrogen electrolyzers relocating to Texas. The bill specifies that the tax credits for clean hydrogen projects will be available for qualifying capital expenditures, with a credit amount capped at 20% of those expenditures. The provisions of the bill will take effect on September 1, 2025, and will apply to transactions and reports due after that date.

Statutes affected:
Introduced: ()
House Committee Report: Tax Code 151.317 (Tax Code 151)