The U.S. Department of the Treasury and IRS released Final Regulations on January 3, 2025, related to the production tax credit (PTC) for hydrogen under Section 45V of the Internal Revenue Code. These regulations, enacted by the Inflation Reduction Act, aim to incentivize the production of qualified clean hydrogen at specific facilities. Approximately 30,000 comments were received on these regulations, highlighting the significance of this development. Section 45V provides a credit based on the kilograms of qualified clean hydrogen produced, with varying credit amounts determined by lifecycle greenhouse gas emissions. The maximum credit is $3 per kilogram under specific conditions, including meeting wage and apprenticeship requirements. The regulations set clear guidelines on facility construction timelines and factors that qualify for the credit. The update to the 45VH2-GREET Model by the U.S. Department of Energy offers users a more detailed tool for determining lifecycle GHG emissions. Taxpayers can now elect to use a specific model version throughout the 10-year credit period, ensuring stability in credit calculations tied to emissions values. The regulations also address the verification process for claiming the Section 45V credit and offer insights on ownership definitions. Taxpayers have the option to claim the investment tax credit instead of the clean hydrogen PTC, providing flexibility in tax benefits for eligible projects. Overall, the Final Regulations provide clarity and some favorable rules for taxpayers engaging in qualified clean hydrogen production, supporting the transition to cleaner energy sources and environmental sustainability.