The Biden administration announced that nuclear power plants will be eligible for tax credits to produce clean hydrogen under the Inflation Reduction Act, a law aimed at combatting climate change by supporting emission-reducing technologies. The move is part of efforts to decarbonize heavy industry and certain vehicles through hydrogen production. While some environmental groups have expressed concerns that diverting clean energy for hydrogen may impact grid availability, the Treasury Department asserts that preventing nuclear plant retirements reduces induced emissions. The final rules, published by the U.S. Treasury, address uncertainties related to a previous hydrogen plan issued in 2023 and offer provisions for natural gas facilities producing hydrogen to access credits by capturing and burying their carbon emissions. This development is intended to position the United States as a global leader in green hydrogen production. The regulations specify that up to 200 megawatts of a reactor's capacity can qualify for credits if at risk of closure due to economic challenges, providing assurance for hydrogen projects to progress in the country. The new rules mark a step towards promoting clean energy and green hydrogen initiatives, aligning with the Biden administration's goals for combating climate change.