Clean hydrogen production tax credit

The US House of Representatives approved a ten-year tax credit for clean hydrogen production for facilities starting operation before 2033. Credit is based on the lifecycle emissions per kg of hydrogen (see the ranges below). Legislation is in place but certification scheme is not yet in place (by Nov 2024: still waiting for the rules with the details of the credit eligibility to be finalized)
• <0.45kg CO2e per kg of H2: full tax credit (ie, $3/kg of hydrogen
• 0.45-1.5kg CO2: 33.4% ($1/kg of hydrogen)
• 1.5-2.5kg CO2: 25% ($0.75/kg)
• 2.5-4kg CO2: 20% ($0.60/kg)
• 4-6kg CO2: 15% ($0.45/kg)

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