The Australian Senate has passed the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024, which implements production tax incentives for renewable hydrogen and critical minerals, in an attempt to decarbonise the national industries and accelerate the production of the minerals needed for the energy transition. The Hydrogen Production Tax Incentive will provide a AUD2 (US$1.25) incentive per kg of renewable hydrogen produced between 2027–2028 and 2039–2040 for up to 10 years per project. Meanwhile the Critical Minerals Production Tax Incentive will provide eligible recipients with 10% of relevant processing and refining costs for Australia’s 31 critical minerals; the credit will be available for a maximum of 10 years between 1 July 2027 and 30 June 2040. The incentives will only be provided once projects are up and running, producing hydrogen or processing critical minerals used in products like wind turbines, solar panels and electric vehicles.
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