Axios Pro Exclusive Content

The real IRA risk to watch

Feb 21, 2024
an illustration of a hydrogen atom covered in warning signs

Illustration: Tiffany Herring/Axios

The IRA almost certainly needs, as the kids say, time to cook.

Why it matters: Yes, we're seeing billions in investments toward battery plants and renewable energy projects.

State of play: The law isn't fully implemented. We're still waiting on lots of crucial language from the Treasury, including on the electricity generation credit and hydrogen production.

  • That creates opportunities for a new Trump administration to potentially rewrite guidance and make tax credits more difficult to access.

What they're saying: The uncertainty surrounding the IRA "weighs on me a lot," said Wilson Ricks, an energy policy researcher at Princeton who specializes in hydrogen.

  • Ricks said the hydrogen sector is a great example of uncertainty's impacts. The sector's still waiting on final tax credit rules and now must also weigh the election.
  • "There is certainly a world where all these investments are made in projects that wind up not being competitive because the political winds shift," Ricks said. "As long as that's a threat looming over the industry, it will have a chilling effect."
Go deeper