Jones Day, a global law firm, reports on the U.S. Internal Revenue Service's proposed regulations for the Clean Hydrogen Production Tax Credit introduced in the Inflation Reduction Act of 2022. This tax credit, codified in Section 45V of the Internal Revenue Code, aims to offset production costs for clean hydrogen with low greenhouse gas emissions. The credit incentivizes the production of clean hydrogen in qualified US facilities to make it more economically viable. The tax credit's general requirements, set by Section 45V, outline the qualifications for clean hydrogen and the corresponding credit amount, which can range from $0.60 to $3.00 per kilogram of clean hydrogen based on emissions rates. To claim the credit, facilities must meet construction deadlines, wage requirements, and have independent verification of hydrogen production. The ultimate goal of the tax credit is to reduce the cost of clean hydrogen production to $1 per kilogram, significantly lower than the current $5 per kilogram cost. This reduction target aligns with the Biden administration's aim to promote clean energy sources. Proposed IRS regulations introduce the 45VH2-GREET model for computing life-cycle GHG emissions rates, essential for determining the tax credit's value. The model covers various hydrogen production pathways and requires specific data inputs to calculate emissions rates. Changes to the model can affect the size of the tax credit, emphasizing the need for producers to monitor updates. The proposed regulations aim to provide clarity and guidance for producers seeking to benefit from the Clean Hydrogen Production Tax Credit, facilitating the transition to cleaner forms of energy production in the United States.