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 for clean hydrogen projects, workforce development, and hydrogen-powered vehicles. It establishes a Clean Hydrogen Development Fund, which will be administered by the comptroller in consultation with relevant state agencies. The fund will support low-interest loans and grants for clean hydrogen projects, trading systems for hydrogen, and the manufacturing of hydrogen electrolyzers. The bill also outlines the criteria for awarding these loans and grants, emphasizing economic impact, emissions reduction, and technological innovation.

Additionally, the bill introduces a Clean Hydrogen Workforce Development Grant Program to support educational institutions in providing training and developing curricula related to clean hydrogen jobs. It includes tax exemptions for hydrogen motor vehicles and for manufacturers of hydrogen electrolyzers relocating to Texas. The bill also establishes a tax credit for clean hydrogen projects, allowing entities to claim a credit based on their qualifying capital expenditures. The provisions of the bill will take effect on September 1, 2025, with specific sections applying to transactions occurring after that date.

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