Hydrogen startups in the US have been eagerly awaiting official guidance from the US Treasury on tax credits to boost their industry. The US Treasury has finally announced the long-awaited final rules under section 45V of the Inflation Reduction Act, providing clarity for hydrogen producers. The rules, which have been in development for over two years, seek to ensure that hydrogen production does not result in additional greenhouse gas emissions. Producers will need to track emissions throughout the lifecycle of hydrogen production to qualify for tax credits. The rules also require producers to purchase renewable or clean power and show its use in hydrogen production by 2030. This move is expected to incentivize the adoption of green hydrogen, which generally costs between $4.50 to $12 per kilogram. The maximum tax credit of $3 per kilogram could make green hydrogen competitive with fossil-derived hydrogen, benefitting existing nuclear and fossil fuel power plants as well. While stakeholders like Electric Hydrogen appreciate the clarity the rules offer, there are still calls for more flexibility in certain aspects. Overall, the industry welcomes the rules and hopes for their continued support under the incoming administration.