On Jan. 3, 2025, the U.S. Department of the Treasury and the Internal Revenue Service unveiled the final rules for the Section 45V clean hydrogen production tax credit. These rules set out eligibility criteria and compliance requirements for hydrogen producers seeking to claim up to $3 per kilogram of clean hydrogen. The regulations, effective Jan. 10, 2025, aim to encourage investment in clean hydrogen technologies while maintaining high standards for environmental performance, reflecting a balance between industry feasibility and environmental integrity. The rules focus on incrementality, deliverability, and temporal matching. Incrementality ensures that additional capacity is brought online from new electricity sources to serve hydrogen producers and reduce GHG emissions. Deliverability ensures that electricity used is physically deliverable to hydrogen production facilities. Temporal matching aligns hydrogen production with clean electricity availability to minimize indirect emissions, with an extended transition period until 2030 and a shift to hourly matching thereafter. The regulations broaden eligibility for hydrogen sources, including methane reforming with CCS and hydrogen from renewable natural gas and coal mine methane. The rules also introduce flexibilities to support industry growth without compromising environmental objectives, such as additional CCS pathways and grid integration measures. Stakeholder feedback has played a role in shaping these final rules, emphasizing the importance of balancing incentives for clean hydrogen production with stringent environmental standards. The Treasury Department's efforts aim to drive investment in clean hydrogen technologies and enable a transition towards a more sustainable energy future.