The Biden administration has made significant changes to the tax credit rules to promote hydrogen production in the United States. The tax credit, introduced under President Biden's climate law, has been amended to allow benefits for some nuclear power plants and for hydrogen produced from natural gas with carbon capture systems, methane, and renewable natural gas. This move comes after companies, including Constellation Energy Corp., voiced concerns that the initial rules would hinder domestic manufacturing of hydrogen. The tax credit, offering up to $3-per-kilogram for production, targets developing a local industry for clean-burning hydrogen. This fuel is deemed crucial for cutting down carbon dioxide emissions in sectors like steel, cement, and heavy transportation. Lobbying efforts from companies like Plug Power Inc. have influenced the eligibility criteria for the tax credit. The final rules also extend the timeline for meeting requirements, providing more flexibility for producers. Projects powered by renewable energy sources added to the grid within three years of the hydrogen plant starting operations will receive the most lucrative credits. Additionally, projects now have an extra two years to ensure clean energy is generated simultaneously with the gas. Moreover, the updated rules broaden the definition of clean energy sources to include nuclear reactors, electricity from states with strict emission caps and clean electricity standards, and methane from natural gas with carbon capture and sequestration. The eligibility for renewable natural gas has also been expanded to include sources like methane from wastewater, animal manure, and coal mines. Overall, the revised regulations aim to provide more certainty to hydrogen producers, foster domestic production, and propel the U.S. into a leadership position in the green hydrogen sector.