The IRS and the Treasury Department released final regulations on January 3 related to the clean hydrogen production tax credit (Hydrogen PTC) under Section 45V and the investment tax credit (Hydrogen ITC) under Section 48. These regulations, following the Inflation Reduction Act of 2022, offer guidance on eligibility, calculation methods, and application timelines for taxpayers. They specify that the Hydrogen PTC is based on the amount of qualified clean hydrogen produced and the applicable percentage determined by the greenhouse gas emissions rate. The Hydrogen ITC, on the other hand, is calculated based on the clean hydrogen production facility's basis and expected emissions rate. The regulations also highlight the importance of energy attribute certificates (EACs) in aligning energy sources with hydrogen production, ensuring environmental standards are met. There is a particular focus on the incrementality, temporal matching, and deliverability requirements to prevent induced emissions in the power sector, with modifications allowing for consideration of qualifying nuclear reactors under certain conditions. These regulations aim to balance incentivizing clean hydrogen production while addressing emissions concerns and encouraging infrastructure development. Taxpayers are granted flexibility in applying the regulations for taxable years, with guidelines for transitioning from the previously proposed regulations to the final ones.