Developed by: Inflation Reduction Act
Federal Agency: Department of the Treasury
Production Tax Credit
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: Credit is for hydrogen produced after 12/31/22. Credit is available for facilities placed in service before 1/1/33 for their first 10 years in service
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.
More information: Request for Comments
