The Biden administration has unveiled final rules for a tax credit aimed at boosting cleaner hydrogen production, which is crucial in reducing planet-warming emissions. While environmental groups cautiously welcomed the rules for their potential to support clean hydrogen projects, concerns were raised about loopholes that could still benefit producers of dirty hydrogen. The tax credit, established as part of the Inflation Reduction Act, is a significant step towards incentivizing the shift towards clean hydrogen as an energy source in sectors like long-haul transportation and industrial manufacturing. The administration's focus is on displacing fossil fuels with hydrogen made through environmentally friendly methods such as water splitting using renewable energy sources. While the rules allow firms producing hydrogen from natural gas to qualify for the credit if emissions are captured and sequestered, concerns remain about ensuring accurate tracking of emissions in such cases. Despite this, the industry sees the tax credit as a positive development that could lead to the production of cleaner fuels, aiding in the decarbonization of sectors that heavily rely on fossil fuels. Various stakeholders, including environmental groups and industry associations like the Fuel Cell & Hydrogen Energy Association, are hopeful that the tax credit will propel the clean hydrogen industry forward, although questions linger about its effectiveness in driving investments and whether all provisions will benefit equally. The rules aim to strike a balance between rewarding clean hydrogen production while addressing potential loopholes that could allow for the support of dirty hydrogen producers.