U.S.: government finalizes clean hydrogen tax credit rules

On January 3, 2025, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final regulations for the 45V Production Tax Credit (PTC), which provides financial incentives for producing clean hydrogen with low carbon emissions.

The new guidelines for the 45V credit, established under the Inflation Reduction Act, build on proposed amendments from 2023 and supplemental proposed regulations released in April 2024. These updates clarify how producers can qualify for the credit, specify the methods for measuring emissions and detail how the credit amount varies, based on the environmental impact of the hydrogen production process.

The final regulations expand the eligibility for hydrogen produce