IRS and Treasury Publish Final Regulations for Section 45V Clean Hydrogen Production Tax Credit

On January 28, 2025, Cravath prepared a memo for its clients entitled “IRS and Treasury Publish Final Regulations for Section 45V Clean Hydrogen Production Tax Credit.” The memo examines the U.S. Department of the Treasury and the Internal Revenue Service’s recently published final regulations for the Clean Hydrogen Production Tax Credit under Section 45V of the Internal Revenue Code (the “45V Credit”).

The 45V Credit was created under the Inflation Reduction Act of 2022 to incentivize the domestic production of clean hydrogen to strengthen U.S. energy security while decarbonizing domestic energy production. The final regulations retain the same complex framework as the proposed regulations but have introduced changes allowing taxpayers greater flexibility and certainty when claiming the hydrogen production credit. However, despite providing the long‑awaited clarifications to the 45V Credit, the final regulations still face an uncertain future as they remain at risk of further modification, or even invalidation, under the Trump administration.

Please click here to read the memo.