DOE Opens Emissions Value Request Process for Clean Hydrogen Tax Credit Implementation
Key Ideas
  • The U.S. DOE has initiated the Emissions Value Request Process to support the implementation of the Clean Hydrogen Production Tax Credit (45V) by the Treasury.
  • Taxpayers with hydrogen production technologies not covered in the recent 45VH2-GREET model can request emissions values from DOE to petition for a provisional emissions rate from the IRS.
  • The Emissions Value Request Process was introduced in December 2023 and now has specified procedures and requirements for accessing it, following stakeholder feedback.
  • Treasury's efforts to implement the 45V tax credit reflect a commitment to promoting clean hydrogen production and supporting innovative technologies in the energy sector.
The U.S. Department of Energy (DOE) has launched the Emissions Value Request Process to facilitate the implementation of the Clean Hydrogen Production Tax Credit (45V) by the U.S. Department of the Treasury. This tax credit was established under the Inflation Reduction Act (IRA) to incentivize and promote cleaner methods of hydrogen production. The Emissions Value Request Process is designed for taxpayers whose hydrogen production technology or feedstock is not covered in the most recent version of the 45VH2-GREET model. By requesting emissions values from the DOE through this process, taxpayers can then seek a provisional emissions rate (PER) determination from the Internal Revenue Service (IRS). The initiative, introduced in Treasury's December 2023 Notice of Proposed Rulemaking for the 45V tax credit, has proceeded with further refinements following a supplemental notice of proposed rulemaking in April 2024 to gather feedback from stakeholders. The recent specification of procedures and requirements by the DOE enables interested parties to apply for access to the Emissions Value Request Process. This development underscores the collaborative efforts of DOE and Treasury to streamline the path for taxpayers to benefit from the 45V tax credit, ultimately encouraging advances in clean hydrogen production technologies and contributing to the overall energy transition.
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