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December 22, 2023
2023-2122

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

 

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