Credit for Production of Clean Hydrogen

Agency: Department of the Treasury

 

Description:

Tax credit of up to $0.60/kg for production of hydrogen, defined as 4 kilograms of CO2e per kilogram or less; credit varies by lifecycle GHG emissions rate, with lower emission hydrogen receiving higher credits

Bill Section:

13204

US Code:

26 USC 45V

New or Existing:

New

Potential Cost:     

$13,200,000,000

Timeline:     

2023-2032

 

TCS Notes:

Tax credit availability for various types of hydrogen dependent on lifecycle GHG emissions calculations, derived from Argonne National Lab’s GREET Model or a successor model.

Elective Payment and Transferability allowed in certain cases.

Other TCS Resources:

TCS Comments to the IRS on Elective Payment

TCS Comments to the IRS on Transfer of Certain Credits