In a major push toward clean energy leadership, the U.S. Department of the Treasury and IRS have announced final rules for the Section 45V Clean Hydrogen Production Tax Credit. Designed to catalyze investment in clean hydrogen, these rules set robust standards to ensure environmental and economic benefits.

To qualify, clean hydrogen production must emit no more than 4 kg of CO₂e per kilogram, with tiered incentives rewarding lower-emission projects. The credit supports multiple production methods, including electrolytic hydrogen (green and pink), methane-based hydrogen (blue), and renewable natural gas (RNG).

“These finalized rules provide the clarity needed to accelerate clean hydrogen investments, create high-quality jobs, and support a greener, more resilient economy,” said U.S. Deputy Treasury Secretary Wally Adeyemo.

Key Highlights:

Lifecycle Emissions Benchmarks: All projects are evaluated based on total direct and significant indirect emissions.
Electrolytic Hydrogen Standards: Requires the use of new or expanded clean power sources within three years of operation and shifts to hourly renewable electricity matching by 2030.
Methane-Based Hydrogen: Expands eligibility to include biogas sources like landfill gas and accounts for national and project-specific methane leakage rates.

The rules reflect insights from over 30,000 public comments and extensive collaboration with agencies like the Department of Energy and EPA. A forthcoming 45VH2-GREET model will provide uniform tools to ensure compliance with lifecycle emissions calculations.

“Hydrogen is set to play a game-changing role in decarbonizing industries and sectors across the U.S., from transportation to heavy manufacturing,” said U.S. Deputy Energy Secretary David M. Turk.

By aligning incentives with strict environmental standards, these measures aim to position the U.S. as a global powerhouse in clean hydrogen production, while encouraging innovation and ensuring accountability across the sector.