On 22 December 2023, the US Treasury Department (Treasury) released the highly anticipated Proposed Regulations relating to the Clean Hydrogen Production Credit (hydrogen credit) under the US Internal Revenue Code of 1986, as amended (the Code),1 Section 45V (Proposed Regulations).2 We provide a high-level overview of the Proposed Regulations below.
The Proposed Regulations would define key terms, such as “lifecycle greenhouse gas emissions,” “qualified clean hydrogen,” “provisional emissions rates,” and “qualified clean hydrogen production facility.” Treasury proposes rules for:
