HB5818 - Hydrogen Fuel Replacement Tax Credit Act

• Creates an income tax credit of $1 per kilogram of zero-carbon hydrogen consumed in Illinois for tax years ending on or after December 31, 2023 and before January 1, 2043.

• Increases the credit by $0.15 per kilogram if hydrogen use occurs in an environmental justice community or if the taxpayer uses contractors/labor in an equity investment eligible community with a project labor agreement.

• Limits total credits allocated to $100,000,000 per state fiscal year, plus any unallocated credits from the prior year.

• Prioritizes credit allocation to Department of Energy Hydrogen Hub participants first, then previous credit recipients based on prior year hydrogen usage, then remaining applicants proportionally.

• Allows earned but unused credits to be carried forward up to 5 years and transferred to other taxpayers; credits expire after the 5-year carryforward period unless transferred.