How do I Get Hydrogen Tax Credits? 

$100 Billion in credits are now available 

The Inflation Reduction Act created a Production Tax Credit (PTC) for making hydrogen. It is the most generous clean hydrogen subsidy in the world. The greener the production method, the higher the subsidy, with producers eligible for as much as $3 per kilogram for 10 years.

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Qualifications

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(1) The production process lifecycle creates no more than 4kg of CO2 per kg of hydrogen produced 

(2) The hydrogen is commercially produced in the US or a Territory

(3) The production and sale are verified by a 3rd party 

(4) Projects must begin construction by 2033

(5) Cannot stack with the Carbon Capture and Sequestration Tax Credit (45Q)

(6) May stack with the Renewable Energy Production Tax Credit and the Zero Emission Nuclear Credit

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Can I Sell my Hydrogen Tax Credits?

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Yes. But first you have to get them. Our team are among the foremost experts on energy tax credits. We can also help you sell them. Contact us below. 

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Claiming Your Tax Credit 

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The Hydrogen Tax Credit is amongst the most complex in the entire Tax Code. Businesses must navigate a web of requirements relating to the production facility and satisfy detailed tests regarding lifetime greenhouse gas emissions based on the most recent GREET model from the Department of Energy. Carbon emissions are measured not just from production itself, but from well-to gate which includes feedstock production and transportation. All this triggers extensive bookkeeping requirements. To maximize the credit (i.e., obtain 5x the standard credit), businesses must satisfy a tangle of separate regulations regarding the prevailing wage (PWA rules).

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If you want to go it alone, links to the statute, preliminary IRS regulations, PWA rules, and the GREET model are below. 

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Alternatively, our tax team literally wrote the book on energy tax credits and can handle the entire process for you. Contact us below or simply schedule a meeting with this link.

We strive to respond the same day.