The Department of Treasury and the Internal Revenue Service have issued final regulations concerning the Section 45V clean hydrogen production credit introduced under the Inflation Reduction Act of 2022. This tax credit is designed to incentivize domestic hydrogen production by offering financial benefits based on the level of greenhouse gas emissions in the production process. The credit is applicable to qualified hydrogen produced through various methods, including those using electricity and methane. To be eligible, the hydrogen production process must result in low lifecycle greenhouse gas emissions, specifically four kilograms or less of carbon dioxide equivalents per kilogram of hydrogen produced. The credit amount ranges from 60 cents to $3 per kilogram, with different tiers available. Producers can claim the credit within 10 years of the eligible hydrogen facility being operational, with construction needing to commence before 2033. The recently released final regulations, effective from January 10, 2025, provide clarity on key aspects. These include the concept of using energy certificates to support clean hydrogen projects, meeting requirements like incrementality and additionality through various pathways, and matching clean hydrogen production with clean power generation. Furthermore, the regulations mandate the use of the 45VH2-GREET model for GHG emissions modeling. Overall, the regulations offer flexibility and certainty for hydrogen producers by incorporating feedback from the public and addressing industry concerns.