66 members of Congress urged the Biden administration to finalize the tax credit regulations for clean hydrogen production under Section 45V and the energy credit under Section 48(a)(15).
This followed an extended comment period, receiving over 29,000 public comments and a three-day hearing. The letter highlighted the importance of these regulations and the intent behind the statute. This article provides an overview of the proposed regulations.
Detailed Verification Section 45V has garnered significant attention from both hydrogen producers and potential credit buyers. The credit’s value depends on the actual amount of clean hydrogen produced, which is determined by strict rules. The new guidelines have generally made it harder to qualify for these credits, but economically, hydrogen production can still be beneficial for those who can navigate these rules effectively.
Although the supplemental guidance has narrowed the eligibility for credits, hydrogen production can remain profitable for producers and buyers who can successfully navigate the new regulations. The economic benefits may justify the effort to meet these stringent criteria.
