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
Implementation Status/Rulemaking:
On November 3, 2022, the Internal Revenue Service issued Notice 2022-58 to request comments on the clean hydrogen production credit (45V credit) and the clean fuel production credit (45Z credit), with comments due December 3, 2022: Source
On December 26, 2023, Internal Revenue Service issued a notice of proposed rulemaking on the clean hydrogen production credit. Comments are due February 26, 2024: Source
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.