Plug Power secures $30m with tax credit sale from Georgia hydrogen plant

The $30m tax credit sale has come in despite Trump administration ordering funding suspension from Inflation Reduction Act.

New York-based Plug Power has boosted its liquidity by securing a $30 million tax credit sale representing one of the first transfer deals for hydrogen storage and liquefaction assets.

It follows the transfer of investment tax credits from its Georgia hydrogen plant to an undisclosed ‘major’ investor. The facility produces, liquifies and stores green hydrogen.

The $30 million Federal Investment Tax Credit (ITC) transfer represents Plug’s first use of the transferability rules under the 2022 Inflation Reduction Act (IRA).

Plug CEO Andy Marsh, said: “We’re excited to have launched the largest liquid green hydrogen facility in the US and to start leveraging these benefits put in place to advance the industry.”

Under the IRA, facilities like Plug’s plant in Woodbine, Georgia, which began production in early 2024, can claim the Section 45V Production Tax Credit (PTC) for green hydrogen produced as well as tax credits on the hydrogen storage and liquefaction assets at the facility.

Plug CFO Paul Middleton said: “Plug is leveraging tax credit transferability to offset a portion of our investment in our hydrogen plants, which will provide liquidity and reduce future fuel costs.”

The IRA introduced new tax credits for hydrogen storage and liquefaction assets, as well as provisions for transferring certain previously non-transferable tax credits.

Plug’s move to inject additional liquidity into the firm comes as the funds from the IRA are suspended, following orders from the Trump administration.

The firm has plans to operate a green hydrogen highway across North America and Europe, with its Rochester (New York) Gigafactory producing electrolysers and fuel cells, with multiple green hydrogen production plants in development for commercial operation.