The Department of the Treasury has released proposed regulations and guidance defining a tax credit for the production of “clean hydrogen,” a significant supply-side incentive that is part of the Biden administration’s larger climate-driven policy framework. But though long-awaited, the measure has stirred up strong disappointment from the power industry.
If finalized, the Treasury Department’s proposed regulations issued on Dec. 22 would amend Sections 45V and 48(a)(15) of the Internal Revenue Code as enacted by the 2022 Inflation Reduction Act (IRA). Section 45V would essentially establish a tiered production tax credit (PTC) that is available for each kilogram of clean hydrogen produced during a taxable year (for the first 10 years after a hydrogen production facility begins operation).
