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Utah House approves hydrogen tax-credit package after heated floor debate over fiscal impact
Summary
The House approved a second substitute to HB62 to allow tax credits for renewable hydrogen production and infrastructure but faced pushback from members concerned the credits might reward projects that would proceed without subsidies and questioned the fiscal impact; the measure passed 44–23.
The Utah House on March 2 approved a second substitute to House Bill 62, an enterprise-zone-style package that would allow tax credits for the production, processing and distribution of hydrogen from renewable energy sources. The vote on the amended measure was 44–23.
Sponsor Representative Segers said the bill both incentivizes renewable production and requires the interim Revenue and Taxation Committee to study the credits’ effectiveness, jobs created and the amount of credits awarded; the measure includes a five-year sunset provision and language directing review in committee. Segers told colleagues the bill will be subject to review and that several previously proposed credits were removed, reducing the fiscal exposure; he said a fiscal note was being prepared for the second substitute.
Representative Thurston raised substantive objections on the floor, saying the state risks subsidizing projects that “would do things that they would have done anyway” and that credits drawn from the education fund should be carefully scrutinized. He said he was not convinced the incentives would produce net public benefit and expressed reservations about diverting education dollars for business incentives.
Supporters framed the bill as a jobs and clean-energy opportunity. Representative Bauer argued hydrogen infrastructure is a versatile, low-emission fuel that could support heavy trucks and other freight needs across the intermountain West and stressed potential job growth. Representative Segers described an example (a proposed facility in Delta) and projected incremental income and employment as the project phases in. The sponsor and supporters said the interim study and a five-year sunset create safeguards to evaluate results.
Key floor exchange: - Representative Thurston: “It’s not entirely clear to me that we’re not just giving money to companies who would do things that they would have done anyway.” - Representative Segers: explained deletion of some initial credits in the second substitute and said the fiscal note was being prepared; he also framed the bill as forward-looking for jobs and infrastructure.
Vote: The second substitute, as amended, passed the House 44–23 and will move to the Senate for consideration. The bill includes committee study requirements and a five-year sunset, which supporters said would allow lawmakers to rescind the program if it fails to meet targets.
