The Biden administration recently released final rules for a tax credit intended to boost cleaner hydrogen production, a move aimed at reducing planet-warming emissions in sectors that are challenging to electrify, such as long-haul transportation and industrial manufacturing including steel-making. The rules received cautious praise from environmental groups, acknowledging the potential emission reduction benefits but also highlighting loopholes that could still benefit producers of dirty hydrogen. The administration's goal is to scale up hydrogen production to replace fossil fuels and combat climate change. The tax credit system rewards firms producing hydrogen through water splitting, extending benefits to those using natural gas with emission capture tech or alternative sources like wastewater and landfill gas. The approach of the tax credit is based on the lifecycle emissions of the hydrogen production process, emphasizing emission reduction rather than the production method. While some critics are concerned about potential support for dirty hydrogen producers, others like the Clean Air Task Force see the benefits for climate action, especially in hard-to-decarbonize sectors. The rules are part of the Inflation Reduction Act and have bipartisan support, signaling a significant policy push towards cleaner energy. The industry response to the finalized rules has been mixed, with organizations like the Fuel Cell & Hydrogen Energy Association expressing relief over the clarity but raising questions about the credit's effectiveness in advancing the industry uniformly. The establishment of these rules is seen as a crucial step towards incentivizing the transition to clean hydrogen and reducing reliance on fossil fuels in high-emission sectors. The future implications of these rules will depend on their implementation and effectiveness in driving investments in clean hydrogen infrastructure.