Now that the only thing as certain as death and taxes is climate change, it is perhaps no surprise that the Internal Revenue Service is critical to emissions policy.
Under the Inflation Reduction Act, the IRS will direct the flow of hundreds of billions of dollars and shape the evolution of the energy industry in the United States. Any day now, eligibility rules are expected to be announced for one of the most important provisions — tax credits for clean hydrogen. This is a golden opportunity for green industrial policy to jump-start innovation. It is also a big risk.