In New York Plug Power said it boosted its liquidity by approximately $30 million through the transfer of the Federal Investment Tax Credit (ITC) on January 24, 2025, to a major investor with a strong track record of purchasing comparable credits. The $30 million ITC transfer represents Plug’s first use of the transferability rules under the Inflation Reduction Act (IRA) of 2022 and is among one of the first transfer deals for hydrogen storage and liquefaction assets, the firm said. Under the IRA, facilities like Plug’s plant in Woodbine, Georgia that produce, liquify, and store green hydrogen can claim the Section 45V Production Tax Credit (PTC) for green hydrogen produced as well as the ITC on the hydrogen storage and liquefaction assets at the facility. Plug secured the ITC through its investment in liquefaction and storage technologies at its green hydrogen plant in Woodbine, Georgia, which began production in early 2024. This development builds on Plug’s announcement in June 2024 of utilizing the PTC at its Woodbine, Georgia facility — allowing the company to benefit from both the PTC and ITC. The firm noted that the IRA introduced new tax credits for hydrogen storage and liquefaction assets, as well as provisions for transferring certain previously non-transferable tax credits. These changes enable businesses to better monetize their tax credits and simplify financing processes.
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