Ministry of Industry Expands Tax Credit for Core Technologies of Hydrogen Specialized Companies

The government will expand tax credits for core hydrogen technologies, including water electrolysis-based clean hydrogen production technology.

On the 10th, the Ministry of Trade, Industry and Energy held a meeting with hydrogen-specialized companies at the Seoul Power Infrastructure Center to discuss support measures to enhance technological competitiveness.

[Image source=Yonhap News]

Through the amendment of the Enforcement Decree of the Restriction of Special Taxation Act, which was announced for legislative notice on the same day, the government plans to designate five technologies and production facilities as national strategic technologies and commercialization facilities to expand tax credits for investments. These include water electrolysis-based clean hydrogen production technology, hydrogen fuel storage and supply device manufacturing technology, manufacturing technology for hydrogen production, compression, storage, and refueling facility components at hydrogen refueling stations, high-density high-efficiency fuel cell system technology for hydrogen vehicles, and manufacturing technology for fuel cell dedicated components.

The Ministry of Trade, Industry and Energy plans to consider adding hydrogen-related core technologies developed by hydrogen-specialized companies to the categories of new growth, source technology, and national strategic technology under the Restriction of Special Taxation Act to further strengthen tax credits for hydrogen-specialized companies.

Additionally, when planning hydrogen-related research and development (R&D) projects in 2024, the ministry will actively identify and reflect the demands of hydrogen-specialized companies and promote technology exchange meetings between hydrogen-specialized companies and public research institutes. The Korea Institute of Energy Technology Evaluation and Planning also announced the direction for planning new R&D projects and provided information on participation methods.

Among the attending companies, Company A requested amendments to related regulations to enable the rapid establishment of hydrogen refueling stations utilizing liquefied hydrogen. Based on the results of the ongoing regulatory sandbox demonstration, the Ministry of Trade, Industry and Energy and the Gas Safety Corporation agreed to institutionalize safety standards for liquefied hydrogen refueling stations by 2024 without delay.

Cheon Young-gil, Director of the Energy Policy Office, stated, "To achieve 600 hydrogen-specialized companies by 2030, we will actively promote the establishment of a hydrogen power generation bidding market this year, the introduction of a clean hydrogen certification system, and the fostering of hydrogen-specialized companies through new systems." He added, "We will responsibly review and manage to ensure that the difficulties faced by hydrogen-specialized companies are definitely resolved."

This content was produced with the assistance of AI translation services.