HOUSTON (ICIS)–The proposed rules that will govern the US hydrogen tax credit program are too strict and may do too little to promote the nascent industry, two hydrogen trade groups said on Friday.
However, environmental groups and an industrial gas producer lauded the proposal rules because they ensure that the most lucrative tax credits go to hydrogen produced with the lowest emissions.
The US Department of the Treasury and the Internal Revenue Service (IRS) revealed the proposed rules on Friday for the Section 45V tax credits, which will be issued to companies producing blue or green hydrogen.
The rules define such key terms as lifecycle greenhouse gas emissions, qualified clean hydrogen and qualified clean hydrogen production facility.
The process to approve the guidelines will kick off on 26 December, when they should be published in the Federal Register. Afterwards, groups will have 60 days to comments before the government issues final rules.
Published by: www.icis.com
Al Greenwood
22-Dec-2023
