On January 3, 2025, the Treasury and the Internal Revenue Service (IRS) issued final regulations for the clean hydrogen production credit (PTC) under §45V of the Internal Revenue Code (IRC) and the election to treat clean hydrogen production facilities as energy property for purposes of the IRC §48 investment tax credit (ITC).
Additionally, the Department of Energy (DOE) intends to release a new version of the 45VH2-GREET model and accompanying user manual to assess the lifecycle greenhouse gas emissions associated with hydrogen production.
The final regulations include important modifications to provide flexibility in key areas, including rules that allow electricity produced from certain pre-existing nuclear facilities to meet the incrementality requirements.
Learn more about the key provisions of the final regulations here.
Author(s): Alan M. Seltzer, Candace L. Quinn, Carl F. Staiger, Heather A. (Blandford) Hurst, James O’Toole, Jr., John F. Povilatis, Sean W. Moran