The effects of H2 addition to the growth ambient during physical vapor transport (PVT) growth of 6H and 4H SiC were investigated using SIMS, DLTS and Hall effect measurements. Using this hybrid physical-chemical vapor transport (HPVT) approach, boules were grown using Ar-H2 and He-H2 mixtures with H2 concentrations up to 50 at%. Thermodynamic modeling suggests that addition of H2 improves the carbon transport in HPVT compared to standard PVT. This should lead to a substantial decrease in the concentration of residual N donors and the concentration of electron traps. This is confirmed by the experimental results. As expected, the source transport rate increased as H2 was added to the growth environment due to increased C transport. The background nitrogen concentration and the free electron density decreased significantly with increasing H2 concentration. The formation of electron traps (activation energies of 0.4 eV, 0.6-0.65 eV, 0.7 eV, 0.9 eV and 1 eV) was also strongly suppressed. These changes were observed for H2 concentrations as low as 4 at%. The decreased N concentration improves the ability to produce high resistivity SiC material, and for H2 concentrations as high as 10-25%, the very first wafers cut from the seed end of the boules have a resistivity exceeding 106 cm.