The Biden administration has unveiled final rules for a tax credit program designed to boost the production of cleaner hydrogen. These rules are highly anticipated and are expected to channel significant funds towards producers of hydrogen with reduced environmental impact. The primary objective behind this initiative is to shift towards cleaner energy sources, particularly in sectors like long-haul transportation and industrial manufacturing, where electrification is challenging. The new rules have received mixed feedback from environmental groups. While there is acknowledgment of the potential for emissions reduction, concerns have been raised regarding loopholes that could still incentivize the production of 'dirty' hydrogen. The tax credit framework is structured to reward hydrogen producers based on their lifecycle emissions, irrespective of the production method. This mechanism encourages the adoption of cleaner technologies and practices in hydrogen production. The support extends not only to hydrogen derived from water splitting using renewable energy sources but also to producers utilizing natural gas with carbon capture technology or alternative sources like wastewater and landfill gas. The implementation of these rules marks a significant step in supporting the clean hydrogen industry. Advocates see this as a crucial measure to transition away from high-emission fossil fuels in hard-to-decarbonize sectors. However, challenges persist, especially in tracking emissions from natural gas-produced hydrogen accurately. The effectiveness of the tax credit in driving industry progress and investments remains a focal point, considering the diverse range of players in the hydrogen sector and the need for consistent regulatory frameworks to ensure environmental benefits are realized.