New Regulations for Clean Hydrogen Production Tax Credits
Key Ideas
- Final regulations under Code Section 45V provide leniency on requirements for clean hydrogen production tax credits.
- Key guidance on hydrogen production using methane reformation technologies is outlined in the Final Regulations.
- Introduction of Gas Energy Attribute Certificates (Gas EACs) for establishing sources of RNG or coal mine methane used in clean hydrogen production.
- Endorsement of book-and-claim framework for hydrogen produced using RNG or coal mine methane systems.
On January 3, 2025, the Treasury Department and the IRS issued final regulations under Code Section 45V for clean hydrogen production tax credits. These regulations retain the 'three pillars' for hydrogen production but offer leniency. Guidance is provided for hydrogen produced using methane reformation technologies. The regulations introduce Gas Energy Attribute Certificates for RNG or coal mine methane sources. A book-and-claim system is endorsed for claiming use of these sources. Requirements for lifecycle GHG emissions measurement and temporal matching are detailed. Taxpayers can rely on these regulations starting January 10, 2025.