Technology
IRS to Determine Guidance on the Inflation Reduction Act’s Clean Hydrogen Production Credit
As mandated by the Inflation Reduction Act, the IRS will promulgate regulations describing how to measure hydrogen producer’s greenhouse gas emissions by developing an accounting method that leverages the extent to which hydrogen is produced from renewable power, the geographical boundaries within which electrolyzers must be located for hydrogen projects, and the time interval in which carbon emissions are measured.
By Sheila M. Harvey, Elina Teplinsky, Elorm K. Sallah
Takeaways:
Last year, the Inflation Reduction Act (IRA) amended the Internal Revenue Code (Code) to include…
Background
In August 2022, the United States passed the Inflation Reduction Act (IRA), earmarking approximately $369…
Clean Hydrogen Production Credit
Under section 45V of the Code, the clean hydrogen production credit is allowable for qualified…
Prevailing Wage and Apprenticeship Requirements
Taxpayers seeking to qualify for the clean hydrogen production and clean hydrogen investment tax credits…
Additionality
The IRS is weighing to what extent hydrogen made with grid-connected electricity should be equally…
Regionality
Regionality establishes a geographical boundary within which both the clean hydrogen production project that the…
Temporal Accounting
The GHG emissions impact of additional electricity demand in the United States can vary vastly…
Next Steps
As stated above, the IRS is expected to release its draft guidance early this summer,…