CHICAGO — On Tuesday, Governor JB Pritzker signed House Bill 2204, creating a tax credit for clean hydrogen users in Illinois.

“Here in the Land of Lincoln, we refuse to deny the looming threats of the climate crisis—and we are taking tangible action to create a more sustainable, environmentally-conscious future for the next generation of Illinoisans,” said Governor JB Pritzker. “This tax credit for users of clean hydrogen won’t just bolster our clean energy economy—it further sets us on a path towards reaching our ambitious goal of 100% clean energy by 2050.”

“This measure helps to better position Illinois to support developing technologies, attract investment and create jobs,” Assistant Majority Leader Jay Hoffman (D-Swansea) said. “We should always be looking for opportunities to make this state a national leader within an industry, and this tax credit can help us become this region’s hydrogen hub.”

The legislation establishes a tax credit of $10 million per year in 2026 and 2027 for users of clean hydrogen. 

When the tax credit ends, the Illinois Environmental Protection Agency will evaluate both the emissions impact of the credit and the national landscape to recommend additional policy measures.

The measures will ensure that Illinois remains competitive in the clean hydrogen economy and meets the goals outlined in the Climate and Equitable Jobs Act. 

In addition to the study, other measures include:

• Directing funds to uses agreed to by environmental groups and industry to ensure hydrogen investments are made where they have the greatest impact.
• Ensuring that hydrogen projects have  community input through public hearings
• Requiring 40% of the benefit to go to equity investment-eligible communities as outlined in the Climate and Equitable Jobs Act.

By revitalizing the Midwest hydrogen market, Illinois will add to its number of clean energy jobs and bring down costs of clean energy alternatives for residents. 

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