On January 3, 2025, the Treasury Department and IRS issued final regulations regarding the clean hydrogen production credit (PTC) under §45V of the Internal Revenue Code. These regulations also cover the treatment of clean hydrogen production facilities for tax purposes. The regulations incentivize the production of qualified clean hydrogen by providing tax credits based on the lifecycle greenhouse gas emissions rate of the hydrogen produced. Despite concerns raised in public comments, modifications were made to offer flexibility in key areas. The regulations define 'qualified clean hydrogen' as hydrogen produced with a low lifecycle GHG emissions rate and verified by an unrelated party. They also detail the calculation of the PTC based on the amount and quality of hydrogen produced. The regulations specify that no PTC credit is allowed for hydrogen produced at facilities claiming other tax credits. Additionally, the regulations provide guidance on the election to treat clean hydrogen production facilities as energy property for investment tax credits. Key provisions include defining a 'qualified facility' as a production line generating clean hydrogen and addressing the inclusion of equipment contributing to the GHG emissions rate. Overall, the regulations aim to promote the production of cleaner hydrogen and provide clarity for taxpayers in the energy and natural resources sector.