IRS Proposes Regulations for Clean Hydrogen Production Credit to Boost Economic Competitiveness and Reduce Emissions.

The US Department of the Treasury and Internal Revenue Service (IRS) have proposed proposed regulations on the Clean Hydrogen Production Credit, established by the Inflation Reduction Act (IRA). The proposed regulations aim to make hydrogen production more economically competitive and reduce climate pollution. The credit is available for 10 years starting on the date that a hydrogen production facility is placed into service for projects that begin construction before 2033, meaning it will remain available for some facilities into the 2040s. The rules also require that taxpayers must use energy attribute certificates (EACs) to assess and document qualification for a particular credit tier. The final rules anticipate a transition to annual matching until 2028.