Revision: Feb. 7, 2023, 4:26 p.m.
Energy and Natural Resources
February 7, 2023
2023-0407s
10/07
Amendment to SB 167-FN-LOCAL
Amend RSA 362-H:1, VII as inserted by section 2 of the bill by replacing it with the following:
VII. “Green hydrogen” means hydrogen derived from a clean energy resource that uses water as the source of the hydrogen. For purposes of green hydrogen electricity generation and hydrogen transmission, a green hydrogen project may include associated clean energy generation, including regenerative fuel cells, transmission, and other infrastructure. “Green hydrogen” electricity generation means a power plant technology in which an electrical generating unit creates electric power exclusively from electrolytic hydrogen, in a manner that produces zero carbon and co-pollutant emissions, using hydrogen fuel that is electrolyzed using a 100 percent zero carbon emission energy source. The term does not include hydrogen produced using steam reforming or any other conversion technology that produces hydrogen from fossil fuel feedstock.
Amend RSA 362-H:3, I and II as inserted by section 3 of the bill by replacing it with the following:
I. The production of green hydrogen by a green hydrogen facility shall be eligible for a credit against the business profits tax. A credit of not more than 10 percent of the qualifying costs or $500,000, whichever is the lesser value, for investments in green hydrogen facilities and regenerative fuel cells brought into service after December 31, 2023, shall be applied against the business profits tax under RSA 77-A for a taxable period ending on or after December 31, 2024. No taxpayer may qualify for more than $500,000 in any single taxable period. The aggregate total for this tax credit is $5,000,000. If the total of applicants exceeds the cap, the funds shall be allocated proportionally.
II. The owner of a green hydrogen facility brought into service after December 31, 2023 shall be eligible under RSA 72:74 for the property tax reduction provided as a payment in lieu of taxes as a renewable generation facility, for a period of 5 years.
Amend RSA 362-H:4, II(g) as inserted by section 3 of the bill by replacing it with the following:
(g) Consider facilities that result in the blending of hydrogen into existing natural gas transmission and distribution systems that serve residential, commercial, transportation, and industrial uses, and consider policy recommendations for inclusion of hydrogen production from fossil fuel feedstock.
Amend the bill by replacing all after section 4 with the following:
5 New Paragraph; Business Profits Tax; Credit for Green Hydrogen Infrastructure. Amend RSA 77-A:5 by inserting after paragraph XVI the following new paragraph:
XVII. The tax credit computed under RSA 362-H:3, I for green hydrogen production and infrastructure.
6 Repeal; 2029; Business Profits Tax Credit. The following are repealed:
I. RSA 362-H:3, I, relative to the business profits tax credit for investments in green hydrogen facilities and regenerative fuel cells.
II. RSA 77-A:5, XVII, relative to the use of the green hydrogen business profits tax credit.
I. Section 6 of this act shall take effect January 1, 2029.
II. The remainder of this act shall take effect July 1, 2023.