Nuclear and Hydrogen Energy: The Senate's Tax Credit Shield Could Fuel a Golden Opportunity

The Senate is now the last line of defense for America's clean energy revolution—and investors should be paying close attention. After the House passed a bill that would slash critical tax credits for nuclear and hydrogen projects, bipartisan pushback is mounting to preserve incentives like Section 45U (nuclear) and Section 45X (hydrogen manufacturing). This fight isn't just about politics—it's about who will control the future of energy, and where to put your money now.

Why the Senate Matters: A Tax Credit Lifeline for Nuclear Energy

The House's One Big Beautiful Bill wants to kill Section 45U, the tax credit that supports zero-emission nuclear power, by accelerating its phaseout to 2031—a full year earlier than the Inflation Reduction Act (IRA) originally mandated. But the Senate is fighting back.

Republicans like Sen. John Curtis (R-UT) and Democrats are united in demanding that the Senate extend the 45U deadline to 2033, matching the IRA's original timeline. This would give projects like NuScale Power's small modular reactors and X-energy's advanced nuclear designs the certainty they need to secure financing and break ground.

Investment Play:
Nuclear's comeback hinges on tax credits. Companies like NuScale (a subsidiary of Fluor Corporation, symbol FLR) and X-energy (backed by Bechtel) are leading the charge. While these firms are private, investors can gain exposure through:
- The Global X Nuclear Energy ETF (NLR), which tracks companies involved in nuclear power.
- Uranium miners like Cameco (CCJ), as renewed nuclear demand could boost uranium prices.

Hydrogen's Turn: Senate Pushes to Save §45X

The House's bill is even harsher on hydrogen. It wants to eliminate Section 45X credits for hydrogen components by 2027, gutting support for companies like Plug Power (PLUG) and Bloom Energy (BE). But the Senate is rallying to extend eligibility through 2032, ensuring that green hydrogen (made with renewable energy) remains cost-competitive.

Why This Matters:
Hydrogen is the “missing link” for decarbonizing heavy industries like steel, shipping, and chemicals. Plug Power, for example, is already supplying hydrogen fuel cells to Walmart and Amazon's warehouses. Without tax credits, these projects could stall—creating a buy signal for investors willing to bet on bipartisan compromise.

The Risks: If the Senate Fails, Investors Get Burned

The House's cuts aren't just about ideology—they're a death sentence for projects already in motion. The Congressional Budget Office warns that abrupt tax credit eliminations could strand $336 billion in investments and slash U.S. clean energy capacity by 237 gigawatts by 2040.

Key Sector Risks to Watch:
1. Nuclear's 60-Day Deadline: The House demands projects start construction within 60 days of the bill's passage—a timeline even Senate Republicans call “unrealistic.” Look for amendments to extend this to 2028, aligning with advanced nuclear's deadlines.
2. Foreign Entanglements: The House's “Prohibited Foreign Entity” (PFE) rules could block projects using Chinese-made components. The Senate is likely to narrow this definition, but supply chain reconfigurations will keep costs high for years.

Cramer's Bottom Line: Buy the Dip—But Stay Aggressive

This isn't a time for timid investors. The Senate's revisions could create a golden crossroads for clean energy stocks. My advice?

• Go all-in on hydrogen now: Plug Power (PLUG) is a must-own, but also consider the Global X Hydrogen ETF (H2LU) for diversified exposure.
• Nuclear is a longer play: Bet on NLR and CCJ, but keep an eye on potential IPOs from firms like NuScale.
• Avoid the House's traps: If the Senate caves, steer clear of any company relying on tax credits for near-term profits.

The Senate's fight isn't just about saving tax credits—it's about saving American energy dominance. Don't miss this chance to profit from it.

Final Warning: If the Senate fails, the clean energy sector could crater. Stay tuned to Capitol Hill—and keep your powder dry until the final vote.