Missing in the Hydrogen Economy Pitch: The Tax Credit Cliff for Fuel Cells

Investors dreaming of a hydrogen economy should circle a date on their calendars: December 31, 2021. This date connects the existing fuel-cell businesses of Bloom Energy (NYSE: BE) and Plug Power (NASDAQ: PLUG) to each company's ambitious plan to become a large-scale manufacturer of hydrogen fuels.

How so? In the United States, the investment tax credit (ITC) for fuel-cell systems abruptly phases out on the last day of 2021. That means Bloom Energy and Plug Power need to both drive down the costs of existing fuel-cell products and seek new growth opportunities by 2022.

However, there's an unappreciated risk of financial disaster if the ITC isn't extended and the hydrogen economy fails to materialize, as expected. It's more likely than investors or Wall Street analysts seem to think.

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Source Fool.com