The Treasury Department will finalize the much-anticipated rules for the hydrogen tax credit (45V) by the end of the year, marking a crucial turning point for the clean hydrogen industry. Deputy Treasury Secretary Wally Adeyemo revealed that the final guidance will aim to strike a balance between cutting carbon emissions and fostering industry growth. This comes after fierce debate over how electrolysis-based hydrogen production should manage its emissions, with industry and environmental advocates at odds. These tax credits—worth up to $3 per kilogram of hydrogen—are set to unlock billions of dollars in investment, but the final rules will ultimately determine which projects can access these incentives.
Adeyemo emphasized that the goal is to provide "clarity, certainty, and flexibility" for hydrogen producers, while still addressing emissions concerns. As we await these guidelines, it's clear that the outcome will shape the future of the U.S. hydrogen economy, determining whether projects advance or stall. With more than 30,000 comments on the draft rules, the Treasury’s final decision is likely to be one of the most significant regulatory actions in clean energy this year.
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