The U.S. Treasury Department's recent publication of final rules on clean hydrogen production tax credits has had a significant impact on the energy sector. The rules clarify the guidelines that producers must meet to qualify for the tax credit of up to $3 per kilogram. This move has provided assurance to companies regarding their investments in hydrogen production projects. The tax credit, which varies based on carbon emissions levels, is part of the Inflation Reduction Act signed by President Biden in 2022. The new rules now allow nuclear power and natural gas producers to qualify for substantial credits for hydrogen production. Clean hydrogen, generated from renewable sources, has traditionally been costly compared to conventional methods. The aim of the tax credit is to reduce the price and incentivize companies to enhance their clean hydrogen infrastructure. Stocks of companies like Plug Power and Constellation Energy have surged as a result of these developments. Plug Power, in particular, has received significant funding for clean hydrogen development and has been supplying green hydrogen to major companies like Amazon, Walmart, and Home Depot. The decision to include nuclear power providers in the tax credit scheme has also led to a rise in various nuclear stocks. Companies focused on small modular reactors have also experienced positive market movements. Overall, the new hydrogen tax credit is seen as a positive step towards promoting clean energy and business investments in the hydrogen sector.