US Treasury Announces Final Rules for Clean Hydrogen Tax Credit
Key Ideas
  • The U.S. Department of the Treasury and IRS released final rules for the section 45V Clean Hydrogen Production Tax Credit to support the growth of the clean hydrogen industry.
  • Key changes and flexibilities in the rules aim to address industry concerns and provide clarity, investment certainty, and flexibility for projects.
  • The rules are designed to align with emissions requirements for qualifying clean hydrogen, supporting projects planned under the Department of Energy's Regional Clean Hydrogen Hubs program.
  • Stakeholders, including companies like Plug Power, Constellation Energy, Air Products, among others, welcome the revisions as they aim to propel the U.S. into a global leader in green hydrogen production.
The U.S. Department of the Treasury and the Internal Revenue Service have announced final rules for the section 45V Clean Hydrogen Production Tax Credit, following the Inflation Reduction Act. These rules have incorporated significant changes and flexibilities to address key issues in the clean hydrogen industry, aiming to facilitate industry growth and advance projects while complying with emissions requirements for clean hydrogen. The adjustments provide clarity, investment certainty, and flexibility for participants in projects, particularly those planned within the Department of Energy's Regional Clean Hydrogen Hubs program. John Podesta, the Senior Advisor to the President for International Climate Policy, highlighted that the revisions in the final rule are the result of two years of listening to stakeholders in the hydrogen industry, states, advocates, and more. He emphasized that these changes offer the certainty required by hydrogen producers to continue their projects and position the United States as a global leader in green hydrogen production. Companies like Plug Power, Constellation Energy, CNX Resources, Air Products, and Bloom Energy could be affected by these new rules. This development marks a significant step towards fostering the growth of the clean hydrogen sector in the U.S., attracting investment, and promoting sustainable energy practices.
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