22 December 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. Document ID: 2023-2122 |
