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AUSTIN - Hyliion Holdings Corp. (NYSE American:HYLN), currently trading at $1.66 with a market capitalization of $291 million, announced Wednesday that its KARNO Power Module qualifies for a 30% Investment Tax Credit under the recently enacted One Big Beautiful Bill Act (OBBBA). According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, which could support its innovative technology initiatives.
The tax credit will apply to energy projects using Hyliion’s KARNO technology that begin in 2026 or later, covering both the generator system and associated supporting infrastructure.
"This legislation represents a meaningful step toward the resilient, fuel-flexible energy infrastructure our nation needs," said Thomas Healy, Founder and CEO of Hyliion.
The KARNO Power Module is described as a linear generator powered by heat rather than combustion. According to the company, its design enables operation on over 20 fuel types while delivering electricity with reduced emissions and a compact footprint.
The legislation also preserves the ability to sell or transfer federal tax credits, which could allow Hyliion’s customers to monetize these incentives.
Hyliion, headquartered in Austin with research and development facilities in Cincinnati, focuses on providing modular power plant technology that can operate on various fuel sources. The company is initially targeting commercial and waste management industries with its power module.
The announcement was made in a press release statement from the company.
In other recent news, Hyliion Holdings Corp. reported its financial results for the first quarter of 2025, revealing an earnings per share of -$0.10, which was below the forecasted -$0.07. The company’s revenue also fell short of expectations, coming in at $489,000 compared to the anticipated $800,000. Additionally, Hyliion has been chosen by the Department of the Air Force and the Department of Defense’s Chief Digital and Artificial Intelligence Office to supply its KARNO Power Modules for a project aimed at enhancing fuel resilience. This selection marks a significant step for Hyliion in supporting the Air Force’s efforts to diversify energy sources. Furthermore, Hyliion signed a memorandum of understanding with Alkhorayef Industries Company to adapt and scale its KARNO Power Modules for the Saudi market, potentially representing a $1 billion business opportunity. The company also entered a non-binding Letter of Intent with MMR Power Solutions for the purchase of three KARNO Power Modules. These developments highlight Hyliion’s ongoing efforts to expand its reach and capabilities in the power technology sector.
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