The recent release of final regulations by the IRS and Treasury regarding the clean hydrogen production tax credit under section 45V of the Internal Revenue Code is a significant development in the Biden Administration's clean energy initiative. The regulations address concerns raised by the hydrogen industry and provide more flexibility compared to the previously proposed regulations. One of the key aspects of the final regulations is the retention of the 'three pillars' which restrict the use of energy attribute certificates (EACs) and determine the amount of the tax credit based on greenhouse gas emissions during the hydrogen production process. The regulations specify rules for calculating GHG emissions associated with electricity used in hydrogen production and set limits on credit availability for hydrogen producers using grid power. The final regulations have liberalized the three pillars in various ways. They include exceptions for incremental power sources, such as nuclear facilities at risk of shutdown, and power generated in states with renewable portfolio standards. The regulations also allow for carbon capture and sequestration retrofit as a means to qualify power sources that have been in operation for more than 36 months as additional. Furthermore, the regulations extend the deadline for hourly matching of clean hydrogen production with clean power generation to January 1, 2030, and allow for hourly accounting of GHG emissions. Producers can now determine emissions on an hour-by-hour basis as long as the annual emissions meet the specified limit. While geographic matching requirements remain, the final rules provide flexibility for demonstrating electricity transfers between regions, offering some leeway in meeting this criterion. Overall, the final regulations aim to support the clean hydrogen industry by addressing industry concerns and providing a clearer framework for claiming the tax credit.