Trump's Hydrogen Lifeline Could Revive Plug Power's Stalled Plans

In a move that could reshape the landscape of clean energy, President Donald Trump's recent signing of the "One Big Beautiful Bill" extends a lifeline to hydrogen production, offering a vital two-year grace period for companies eager to invest in this burgeoning sector.

The law allows the 45V clean hydrogen production tax credit to be available for projects that commence construction on hydrogen facilities by Dec. 31, 2027, an extension of 2 years vs. the prior draft's deadline, according to JPMorgan.

The Plug Power Analyst: Analyst Bill Peterson reiterated a Neutral rating on Plug Power Inc PLUG.

The Plug Power Thesis: The company now has more flexibility to deploy capital rather than having to rush due to a closer cutoff, Peterson said in the note.

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"The preservation of direct pay and transferability make the credits monetizable and should help continue to offset some of Plug's cash burn," he wrote.

Plug Power had delayed the plant in Texas due to uncertainties around the tax credit, the analyst stated. With this resolved, the company "can make meaningful progress with the DOE (Department of Energy) on the loan draw," he added.

Given the DOE's broader financing facility, Plug Power could construct the new plant by 2026-2027 "subject to appropriate equity financing in conjunction," Peterson further said.

PLUG Price Action: Shares of Plug Power had risen by 3.6% to $1.42 at the time of publication on Tuesday.

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