On December 12, 2024, the IRS and Treasury are expected to finalize regulations on the investment tax credit (ITC) under section 48 of the Internal Revenue Code. The Final Regulations maintain key aspects of the Proposed Regulations from November 2023 but introduce adjustments and clarifications. Notable updates include requirements for energy property units, rules for retrofitted property, fractional interest ownership, and eligibility of specific software under the integral part framework. The regulations also modify definitions for energy storage technologies, such as hydrogen storage and 'second life' batteries, to expand ITC eligibility and support renewable energy projects. In response to feedback, the Final Regulations drop restrictions on hydrogen storage technology, allowing a broader range of applications beyond energy production. However, equipment for storing hydrogen carriers like ammonia and methanol remains ineligible for the ITC. Additionally, adjustments to the definition of qualified biogas property address concerns raised by stakeholders, with changes in methane content measurement and allowance for limited flaring. The regulations also emphasize compliance with environmental laws. The Final Regulations impact 'energy projects' subject to domestic content and energy community requirements, requiring adherence to prevailing wage and apprenticeship rules for full ITC benefits. These rules are tested at the project level, ensuring alignment with regulatory standards and promoting sustainable energy initiatives.