The U.S. Treasury Department is finalizing tax credits aimed at reducing carbon emissions, addressing climate change, and meeting energy needs, with a focus on clean energy sources like hydrogen. The tax credits, part of the Inflation Reduction Act, include provisions for clean hydrogen production, clean electricity production, and clean electricity investment. U.S. Deputy Secretary of the Treasury Wally Adeyemo highlighted the importance of these rules in driving significant deployment of clean hydrogen for heavy industry, emphasizing job creation and economic growth. However, the use of hydrogen has raised controversy due to the different production methods and associated greenhouse gas emissions. New Mexico, a state experiencing a boom in renewable energy, is well-positioned to benefit from these tax credits, particularly in the development of green hydrogen projects powered by renewable sources. The tax credits aim to support the economy, lower energy costs, create job opportunities, and promote the transition to cleaner energy sources. Despite concerns surrounding water resources and greenhouse gas emissions related to hydrogen production, the implementation of these tax credits is seen as a positive step towards achieving climate objectives while ensuring the reliability of the electric grid.