The Australian Treasury has recently launched a consultation on a hydrogen production tax incentive aimed at fostering the growth of renewable hydrogen production in the country. The incentive involves a refundable tax offset that can be availed by eligible producers for a maximum of 10 years, spanning from tax years 2027-2028 to 2039-2040. As part of the consultation, the Treasury is seeking feedback on various aspects, including the eligibility criteria for the incentive which covers factors like location, maximum facility capacity, emission limits, and production limits. Producers meeting these criteria stand to benefit from a fixed incentive amount of A$2 (approximately US$1.32) per kilogram of hydrogen produced within the specified parameters. The consultation also focuses on clarifying the definition of 'eligible production' to ensure transparency and fairness in the application of the incentive. Stakeholders and interested parties have until July 12 to provide their comments and feedback on the proposal. This initiative reflects the Australian government's commitment to promoting green energy solutions and driving the transition towards a more sustainable and environmentally friendly economy.