The Biden administration has introduced final rules for a tax credit intended to advance the production of cleaner hydrogen. This move has been met with cautious approval from environmental groups, acknowledging the potential for reduced planet-warming emissions in sectors like long-haul transportation and industrial manufacturing. While most hydrogen is currently produced from natural gas, the rules offer incentives for cleaner production methods involving renewable energy sources. A key aspect of the rules is the focus on the lifecycle emissions of hydrogen production, rather than the specific production methods. This approach allows for credits to be extended to firms employing technologies to capture emissions from natural gas-based hydrogen production. Although the rules aim to support clean hydrogen projects, there are concerns that producers of dirty hydrogen may also benefit from the program. Experts recognize the importance of incentivizing clean hydrogen production, particularly in sectors that are challenging to decarbonize. The tax credit is seen as a vital step in encouraging the transition from fossil fuels to cleaner energy sources. However, there are lingering challenges, such as the need for stringent regulations to monitor emissions accurately. Industry stakeholders, including the Fuel Cell & Hydrogen Energy Association, are optimistic about the potential impact of the tax credit on the hydrogen industry. The focus now shifts to whether the credit will effectively drive investment and innovation across the sector. Despite some apprehensions, the rules are generally perceived as a positive development in the push for cleaner energy and reduced carbon emissions.