Treasury, IRS Release Section 45V Clean Hydrogen PTC Proposed Regulations

Highlights

• The U.S. Department of the Treasury and IRS on Dec. 22, 2023, released proposed regulations regarding the production tax credit (PTC) for hydrogen under Section 45V of the Internal Revenue Code.
• Under Section 45, a PTC is available for each kilogram of clean hydrogen produced during each taxable year for a hydrogen generation facility's first 10 years of service.
• The proposed regulations provide rules regarding the calculation of hydrogen production facility emissions, additionality and the use of renewable energy certificates.

The U.S. Department of the Treasury and IRS on Dec. 22, 2023, released proposed regulations regarding the production tax credit (PTC) for hydrogen under Section 45V of the Internal Revenue Code, as enacted by the Inflation Reduction Act. Comments to the proposed regulations are due 60 days after the proposed regulations are published in the Federal Register (which is expected Dec. 26, 2023). In conjunction with the