Developed by: Inflation Reduction Act
Federal Agency: Department of the Treasury
Description: Provides a tax credit for the production of clean hydrogen at a qualified clean hydrogen production facility
Recipients: Producers of hydrogen in the United States.
Timing: The OBBBA accelerates the phase-out, requiring construction to begin before January 1, 2028.
Amount:
- Base Credit Amount: $0.60/kg multiplied by the applicable percentage. The applicable percentage ranges from 20% to 100% depending on lifecycle greenhouse gas emissions. The $0.60/kg is adjusted for inflation.
- Bonus Credit Amount: 5 times the base credit if the facility meets prevailing wage and registered apprenticeship requirements. Initial guidance on the labor provisions is available here.