Introduction
On August 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022 (the “Act”) into law. The Act includes significant incentives pertaining to producers and end users of clean hydrogen including a new clean hydrogen production tax credit as well as an expansion of the investment tax credit for hydrogen-related energy storage. This alert provides a brief overview of the Act’s hydrogen-related tax credits and what they mean for project developers and producers of clean hydrogen. For a more detailed discussion of the credits from a tax perspective, click here.
Clean Hydrogen
The Act defines “clean hydrogen” as hydrogen that is produced through a process that results in a lifecycle greenhouse gas emissions rate of no greater than 4 kilograms of CO2 equivalent (“CO2e”) gas per kilogram of hydrogen. Because this definition is process-neutral,…
Clean Hydrogen and Fuel Cell Incentives in the Inflation Reduction Act of 2022 | Thought Leadership
