Global Daily Tax News, Australian Legislature Clears Hydrogen, Critical Minerals Tax Breaks, (Feb 13, 2025)

Lawmakers in both houses of Australia's parliament have signed off on the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024.

The legislation amends the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, and the Taxation Administration Act 1953. The legislation will establish two tax incentives:

• A Hydrogen Production Tax Incentive worth AUD2 per kilogram of renewable hydrogen produced between 2027 and 2039– for up to ten years per project;

• A Critical Minerals Production Tax Incentive, worth ten percent of relevant processing and refining costs for Australia's 31 critical minerals, for critical minerals processed and refined between 2027– and 2039–, for up to ten years per project.

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.

Recipients of the production tax incentives will also be required to deliver benefits relating to the six Community Benefit Principles included in the overarching Future Made in Australia Bill.