The U.S. Department of the Treasury and IRS have unveiled final rules related to the section 45V Clean Hydrogen Production Tax Credit, designed to facilitate the growth of the clean hydrogen industry while enforcing strict emissions standards. These rules provide clarity on the eligibility criteria for producers utilizing different energy sources such as electricity, natural gas with carbon capture, renewable natural gas (RNG), and coal mine methane. The guidelines set a lifecycle emissions threshold, stipulating that qualifying clean hydrogen must not exceed 4 kg of CO₂e per kilogram produced. Credits are structured into tiers based on emissions intensity, incentivizing lower-emission production methods. The rules also cover electrolytic hydrogen (green and pink hydrogen) and methane-based hydrogen (blue hydrogen), ensuring that production aligns with emissions standards through measures like incrementality, state policy adherence, and methane leakage rate considerations. The regulations aim to bolster the development of clean hydrogen to power heavy industries and create employment opportunities. U.S. Deputy Treasury Secretary Wally Adeyemo highlighted the incorporation of feedback from companies investing in clean hydrogen projects and emphasized the potential for substantial deployment of clean hydrogen in various sectors. The industry is optimistic about the measures, as they promise to streamline regulatory processes, encourage investments, and position the U.S. as a frontrunner in green hydrogen innovation. The collaboration between the Treasury, DOE, and EPA in considering public comments and developing tools like the 45VH2-GREET model reflects a comprehensive approach to ensure accurate emissions calculations and regulatory compliance. The final rules are expected to provide the certainty required by hydrogen producers to advance their projects and contribute to the U.S.'s leadership in green hydrogen technology and sustainability.