"The Treasury Department released heavily anticipated tax guidance Friday that would force companies to use low-carbon or zero-emissions energy to power the hydrogen production process — a move designed to keep emissions in check for the emerging industry.
The regulations for the 45V tax credit, which are available for public comment for 60 days, outline how to qualify for up to $3 per kilogram of the cleanest hydrogen produced with prevailing wages and apprenticeship requirements. The administration says hydrogen produced by fossil fuels with carbon capture will qualify.
Under the plan, a 60-cent credit kicks in for a kilogram of hydrogen produced with four kilograms of carbon dioxide equivalent. Producers earn more credits with lower CO2 equivalent emissions."
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