Shares of hydrogen producer and gasoline cell maker Plug Energy (NASDAQ: PLUG) soared 22.2% Monday, as of 1:45 p.m. ET. That prolonged Friday’s acquire that got here after the U.S. Division of the Treasury launched remaining guidelines for the clear hydrogen manufacturing tax credit score established by the Inflation Discount Act (IRA).
Plug shares are rallying on the information, as these guidelines appear to supply flexibility that might particularly profit Plug Energy with its numerous hydrogen enterprise. Plug shares have now surged 41.5% within the first days of 2025.
Officers launched the ultimate guidelines after receiving suggestions from trade gamers. The brand new guidelines give inexperienced hydrogen producers a extra aggressive approach to maintain their hydrogen initiatives transferring ahead.
The added flexibilities are additionally meant to offer corporations extra readability for continued investments to drive the manufacturing and use of fresh hydrogen. The brand new guidelines differ from the initially proposed guidelines by increasing the definition of recent clear energy used to generate hydrogen. The aim is to make sure that electrical energy consumption for hydrogen manufacturing meets lifecycle emissions requirements whereas nonetheless providing tax credit the place sensible.
Plug Energy may benefit, because it has a number of hydrogen manufacturing amenities throughout the U.S., together with a plant in Georgia that opened final yr. The tax credit make its hydrogen extra aggressive. However the firm continues to lose cash, and buyers have shunned the inventory on account of fears surrounding its capacity to use for tax credit that would supply much-needed monetary advantages.
Plug Energy shares have dropped about 25% within the final yr, even after the current surge greater. Buyers ought to understand that whereas that is the information that Plug Energy needed relating to IRA tax advantages, it stays unclear what, if something, the incoming administration would possibly change transferring ahead. For that cause, it might nonetheless be finest to avoid Plug Energy inventory and watch for extra certainty within the coming yr.
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