Clifford Chance

Clean Hydrogen Tax Credit Proposed Regulations: A Focus on the "Three Pillars"

January 22, 2024

On December 22, 2023, the U.S. Department of the Treasury and the Internal Revenue Service announced Proposed Treasury Regulations (the "Proposed Rules") to implement the Section 45V clean hydrogen production tax credit enacted under the Inflation Reduction Act of 2022  The full text of the Proposed Rules is available here.  This Client Alert provides a brief overview of Section 45V of Internal Revenue Code of 1986 (the "Code") and highlights the most important elements of the Proposed Rules – the calculation of lifecycle greenhouse gas emissions. Future client alerts will address other aspects of the Proposed Rules.

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