The Treasury Department has issued the final guidance on the '45V' tax credit, part of the Inflation Reduction Act of 2022, to promote clean hydrogen investment. These rules provide incentives for projects that drive clean hydrogen deployment in heavy industry and create job opportunities. The tax credit amount is determined by the emissions rate, encouraging low-carbon hydrogen production. Eligible projects include clean hydrogen production and electricity generation from renewable sources. The rules also open doors for nuclear energy projects, carbon capture, and utilization of alternative energy sources for hydrogen production. The guidance aims to increase domestic hydrogen production, aligning with clean energy goals to reduce emissions by 10% by 2050. Industry experts believe these rules will encourage off-takers to support hydrogen production, facilitating the growth of the hydrogen market and aiding in meeting climate commitments.