The Biden administration has unveiled final rules for a tax credit intended to boost cleaner hydrogen production, directing billions of dollars towards incentivizing the shift from fossil fuels. This move has garnered mixed reactions, with environmental groups offering cautious approval due to loopholes that may inadvertently support the production of 'dirty' hydrogen. The tax credit system is designed to support firms generating hydrogen through various methods, including splitting water and capturing emissions from natural gas usage. While the credit is primarily based on the lifecycle emissions of the production process, concerns remain about accurately monitoring emissions from natural gas-based hydrogen. Proponents believe that promoting cleaner hydrogen production is crucial for sectors like long-haul transportation and steel-making to reduce greenhouse gas emissions. The rules, part of the Inflation Reduction Act, have bipartisan support and are hailed as a significant policy measure to advance the clean hydrogen industry. However, challenges persist in ensuring that the tax credit effectively drives investment and confidence in the industry without inadvertently benefiting producers of high-emission hydrogen.