Relating to incentives for the development of the clean hydrogen industry in this state, including tax benefits, loans, and grants for clean hydrogen projects, clean hydrogen workforce development, hydrogen powered motor vehicles, and certain items used to produce clean hydrogen.

HB 5600 establishes a Clean Hydrogen Development Fund to provide low-interest loans, state-backed bonds, and grants for clean hydrogen infrastructure, production facilities, and electrolyzer manufacturing in Texas. It offers a 20% state tax credit for qualified costs related to hydrogen production, transport, and storage, along with 10-year franchise and sales tax exemptions for manufacturers relocating to Texas. Hydrogen-powered vehicles (including trucks, trains, and planes) receive a 10-year exemption from state highway use taxes, ending when hydrogen becomes cost-competitive with conventional fuels. The bill also requires workforce training partnerships between educational institutions and the hydrogen industry to develop specialized job programs.