The U.S. Treasury Department and IRS have finalized rules for a hydrogen production tax credit, enabling producers to utilize electricity from various sources, including natural gas with carbon capture. Additionally, hydrogen made from renewable natural gas and coal mine methane are eligible for the credit, with increased flexibility for the use of nuclear power in hydrogen production. The rules provide clarity and investment certainty, benefiting projects under the Department of Energy’s Regional Clean Hydrogen Hubs program. The 45V tax credit policy is crucial for companies like Exxon Mobil, impacting their decisions on producing hydrogen from Permian Basin natural gas. The regulations offer pathways for hydrogen production using different sources and aim to ensure that clean hydrogen meets lifecycle emissions standards. The tax credit's value is linked to the greenhouse gas emissions of hydrogen production, with varying credits based on emissions levels. The final rules also address blue hydrogen production using methane reforming technologies, emphasizing accuracy in determining credit value. Notably, the regulations include provisions for nuclear power, providing more flexibility in qualifying for the tax credit. The changes in the rules are seen as positive for the hydrogen industry, encouraging investments in cleaner technologies. Overall, the finalized rules are viewed positively by industry experts and stakeholders, as they offer a framework that promotes innovation, investment, and sustainability in the hydrogen sector. The tax credit incentives aim to drive progress towards lower-carbon energy solutions and position the U.S. as a global leader in clean hydrogen production.