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45V Clean Hydrogen Production Tax Credit Guidance

Dec 22, 2023

The 45V Clean Hydrogen Production Tax Credit Guidance from the 2022 IRA.

The document titled "Section 45V Credit for Production of Clean Hydrogen; Section 48(a)(15) Election to Treat Clean Hydrogen Production Facilities as Energy Property" contains proposed regulations related to the tax credit for clean hydrogen production, as established by the Inflation Reduction Act of 2022. It addresses various aspects of hydrogen production, lifecycle greenhouse gas emissions, and associated tax incentives. Key points include:

  1. Lifecycle Greenhouse Gas Emissions: The document focuses on determining lifecycle greenhouse gas emissions rates from hydrogen production processes, a critical factor in calculating the tax credit.

  2. Provisional Emissions Rates: It outlines procedures for petitioning provisional emissions rates, essential for verifying clean hydrogen production and its eligibility for tax credits.

  3. Clean Hydrogen Production Credit: The regulations define the eligibility criteria and calculation methods for the clean hydrogen production credit, aligning with the Inflation Reduction Act's objectives.

  4. Modifying or Retrofitting Facilities: Guidelines are provided for modifying or retrofitting existing qualified clean hydrogen production facilities, emphasizing the transition to cleaner hydrogen production methods.

  5. Use of Renewable or Zero-Emissions Electricity: The document includes regulations on using electricity from renewable or zero-emissions sources to produce qualified clean hydrogen, reinforcing the shift towards sustainable energy sources.

  6. Electing Energy Property Status: It outlines the process for electing to treat part of a specified clean hydrogen production facility as property eligible for the energy credit, offering flexibility in how facilities manage their assets for tax purposes.

  7. Taxpayer Eligibility and Obligations: The regulations define taxpayer obligations, including production verification and compliance with specific standards, to claim the clean hydrogen production credit or elect energy property status.

  8. Public Hearing and Comments: The document announces a scheduled public hearing and invites written or electronic comments, encouraging stakeholder engagement in the regulatory process.

In summary, the document provides comprehensive guidance on the regulatory framework for claiming tax credits under the Inflation Reduction Act for clean hydrogen production, addressing both the environmental and economic aspects of hydrogen as an energy source.

Read the published version here:

Federal Register 45v
Download PDF • 568KB

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