The Australian Government has introduced the Australian Future Manufacturing (Production Tax Credits and Other Measures) Bill 2024. The Bill will establish the Hydrogen Production Tax Incentive (HPTI).
The HPTI is designed to:
bring forward project development
bring renewable hydrogen into use faster
Scale up to reduce production costs.
The HPTI will be paid in the form of a refundable tax credit through Australia’s tax system, and will provide eligible producers with an incentive of A$2 per kilogramme of renewable hydrogen for a period of 10 years, from 1 July 2027 to 30 June 2040.
The development of a renewable hydrogen energy industry presents significant economic opportunities for Australian exports and domestic use. This can be achieved through value-added manufacturing of green ammonia and fertiliser, iron and alumina.
The HPTI is part of Australia’s $22.7 billion Manufacturing for the Future programme. It supports the National Hydrogen Strategy 2024.