The U.S. Treasury Department has unveiled new regulations, referred to as the 45V rules, which are intended to encourage investment in and development of clean hydrogen production facilities throughout the United States. These rules will dictate the use of provisions in the 2022 Inflation Reduction Act to enable owners and developers of clean hydrogen facilities to claim production tax credits. The regulations offer concessions that allow hydrogen producers to utilize various electricity sources, including renewable sources like wind and solar, as well as coal mine methane and oil and gas processed with carbon capture. The focus is on promoting 'clean' hydrogen that is produced using renewable sources, with significant tax deductions available for projects with lower greenhouse gas emissions. The Deputy Treasury Secretary highlighted that these rules were formulated based on feedback from companies to drive the deployment of clean hydrogen and create job opportunities. While industry groups have praised the regulations for providing flexibility and fostering innovation, environmental advocates stress the importance of ensuring that hydrogen production is decarbonized across the supply chain. The finalized rules are anticipated to be published in the Federal Register on January 10, setting the stage for increased investments and advancements in the clean hydrogen sector.