Tax News Update    Email this document    Print this document  

December 22, 2023

IRS releases proposed regulations on IRC Section 45V credit for producing clean hydrogen

The IRS has released much anticipated proposed regulations (REG-117631-23) on the IRC Section 45V clean hydrogen production credit created by the Inflation Reduction Act. The proposed regulations would provide guidance on how taxpayers can: (1) determine lifecycle greenhouse gas emissions rates resulting from hydrogen production processes; (2) petition for provisional emissions rates; (3) verify production and sale or use of clean hydrogen; (4) modify or retrofit existing qualified clean hydrogen production facilities; (5) use electricity from certain renewable or zero-emissions sources to produce qualified clean hydrogen; and (6) elect to treat part of a specified clean hydrogen production facility as property eligible for the energy credit. There will be a public hearing on the proposed regulations on March 25, 2024. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor