Newly Finalized Section 45V And 48 Regulations Face Uncertain Future

Possible Congressional Review Act Invalidations Looming

On December 4, 2024, and January 3, 2025, respectively, the Department of the Treasury and Internal Revenue Service finalized two key sets of regulations pertaining to the energy credit (most commonly referred to as the "investment tax credit" or "ITC") under Section 48 of the Internal Revenue Code of 1986 (the "Code") on the one hand (the "Final ITC Regulations"), and the clean hydrogen credit under Section 45V of the Code, on the other hand (the "Final Hydrogen Regulations") (together with the Final ITC Regulations, the "Final Regulations").

These Final Regulations, and the Final Hydrogen Regulations in particular, have been heavily anticipated by the renewables and energy transition industry. Not only do such regulations provide much-needed clarity in the application of key statutory provisions, but they also serve to address well-recognized concerns the industry had with regard to the administrability of