In March 2021, Utah adopted state tax incentives for the production of hydrogen fuel. HB0223 provides that a taxpayer may claim a refundable tax credit of 12 cents per kg of hydrogen produced during the first two years of production, with an annual cap at 5,600 metric tons per year, for any hydrogen production system placed into service after Jan. 1, 2022. The taxpayer must sell the hydrogen produced from the system as a commercial enterprise, and may not claim additional electricity or hydrogen-related tax credits. The same tax credit applies to nonrenewable hydrogen.