Oklahoma’s hydrogen fuel industry could get a shot in the arm from a new bill

Oklahoma’s hydrogen fuel industry could get a shot in the arm from a new bill

March 18, 2022 1 By Erin Kilgore

SB 1857 would widen tax credits for businesses that use H2 as a source of fuel or energy.

Proposals for encouraging the development of the hydrogen fuel industry in Oklahoma by way of business incentives have made their way through the state senate.

Senate Bill 1857 was authored by Senator John Michael Montgomery, R-Lawton.

Should the Oklahoma hydrogen fuel industry bill pass, it would extend the business tax credits already available, so that they incentivize the use of H2 as a fuel source. Companies using the carbon emission-free fuel source would be able to benefit from this financial relief. Another Senate Bill, also authored by Senator Montgomery, SB 1858, would also allow credits for businesses that pay for tuitions for hydrogen engineering degrees for their employees.

Montgomery stated in a recent news release that the state recently joined an alliance with Louisiana and Arkansas for the creation of a “regional hydrogen hub” that would promote this clean energy industry.

Hydrogen fuel industry - Jobs - puzzle piece

“This is a very exciting endeavor, and hydrogen has the real possibility to be a viable commercial fuel, especially when you consider how clean and cost-effective this type of energy is in relation to other sources,” said Montgomery. “We have an excellent opportunity to be a nationwide leader in hydrogen fuel production, but we must give businesses the tools they need to succeed when developing this new energy type.”

A task force found that investment into the hydrogen fuel industry would directly create 4,400 new jobs.


According to Montgomery, a task force that examined the opportunities for H2 in the state determined that investing in it would lead to the direct creation of 4,400 jobs within Oklahoma. Directly and indirectly, it would affect about 19,500 jobs. It’s overall economic impact for the state would be in the range of $1.5 billion to $2.5 billion.

SB 1857 is aimed at accelerating the adoption of H2-powered vehicles to the eligible recipients to the 10/10/10 vehicle tax credit plan in the state. That plan has a $10 million cap for qualified, vehicles considered to be clean burning through the use of compressed natural gas. It also has a $10 million cap for properties that provide electric vehicle charging stations. The bill would add another $10 million credit for properties that offer H2 fueling systems, to encourage the growth of the hydrogen fuel industry there.

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