The United States Department of the Treasury and IRS have unveiled final rules for the Section 45V Clean Hydrogen Production Tax Credit to incentivize clean hydrogen production under strict emissions standards. Clean hydrogen is vital for decarbonizing sectors like industry and transport, offering an alternative to fossil fuels. Deputy Energy Secretary David Turk highlighted the importance of clean hydrogen in decarbonizing multiple sectors across the economy, leading to new economic opportunities. The rules, after evaluating public comments, balance environmental rigour with industry practicality. They set forth stringent lifecycle emissions standards for hydrogen production, support electrolytic hydrogen updates, and provide detailed guidelines for methane-derived hydrogen. State-level clean energy policies play a key role in compliance with incrementality standards, with Washington and California meeting criteria. The rules aim to drive the clean hydrogen economy forward by empowering stakeholders with clarity and investment certainty, accelerating the adoption of clean hydrogen technologies. The US is positioning itself as a leader in combating climate change and transitioning towards a sustainable energy future through these groundbreaking policies.