On January 3, 2025, the U.S. Treasury Department and Internal Revenue Service (IRS) unveiled final regulations pertaining to the credit for production of clean hydrogen, as outlined in Section 45V of the Inflation Reduction Act. Effective from January 10, 2025, these regulations are set to apply to taxable years starting after December 26, 2023, the date when the proposed regulations were initially issued. The clean hydrogen production tax credit offers an income tax credit of up to $3.00 per kilogram of hydrogen produced, with adjustments for inflation. The credit structure comprises four tiers based on the carbon intensity of the hydrogen production process, rewarding those with the lowest greenhouse gas emissions. Moreover, compliance with certain wage and apprenticeship requirements further determines the credit value. The final regulations provide clarity on eligibility criteria, especially for hydrogen producers utilizing diverse energy sources like natural gas with carbon capture, renewable natural gas, and coal mine methane. Noteworthy enhancements in the final rules include the extension of the credit to hydrogen produced using electricity from states with emissions restrictions or from specific nuclear power plants facing potential retirement challenges. The newfound certainty and adaptability in the regulations are anticipated to stimulate heightened investment and deal-making activities within the hydrogen production sector. However, amid the evolving landscape, industry stakeholders are advised to stay vigilant and informed about any forthcoming updates regarding the clean hydrogen production tax credit.