Section 45V of the US Internal Revenue Code establishes a credit for qualifying clean hydrogen produced at eligible facilities. The credit is tied to kilograms of qualifying production, with the applicable rate determined by the hydrogen's lifecycle greenhouse gas emissions and other statutory conditions.
The rate can increase when requirements such as prevailing wages and apprenticeships are met, subject to the law's specific exceptions. Producers also face verification, recordkeeping and other tax rules. The credit is not automatically available merely because a company describes its product as green hydrogen.
Under federal law in effect in November 2026, a qualifying production facility must begin construction before January 1, 2028. Eligible production is generally considered over the statutory ten-year period beginning when the facility was placed in service. The rules should be checked again before a financial decision because legislation and agency guidance may change.
When comparing projects, confirm the actual emissions tier, start-of-construction evidence, wage and apprenticeship compliance, and whether the credit is used in the published cost estimate. Separate a possible tax benefit from money already received.