Biden Administration Revises 45V Hydrogen Tax Credit Rules, Allowing Up to $3 Per Kilogram Subsidy Worth Billions

Jan 3, 2025, 02:07 PM

The Biden administration has revised the regulations governing the 45V hydrogen tax credit, which is valued at billions of dollars. This change comes after industry stakeholders argued that the previous stringent safeguards hindered domestic hydrogen production. The final rules, released by the U.S. Treasury Department, include a provision allowing existing nuclear power facilities to qualify for the subsidy. The updated guidelines enable hydrogen producers to access tax credits of up to $3 per kilogram. This development follows extensive lobbying efforts in Washington and is expected to catalyze significant investment in green hydrogen production. The Department of Energy is also set to release an updated version of the 45VH2-GREET model, which is used to calculate the credit amount.