Policy record
Section 45V Clean Hydrogen Production Tax Credit (IRA, as amended by OBBBA 2025)
Section 45V explained: 2026 rates, eligibility and dates →
JurisdictionUSA
Legal statusin_force
RelevanceCore
InstrumentTax credit
Effective2022-08-16
Policy details
SummaryA per-kg production tax credit (PTC) for clean hydrogen produced at a qualified facility, scaling inversely with lifecycle GHG emissions intensity as calculated via DOE's 45VH2-GREET model; applies for 10 years from the facility's placed-in-service date. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, accelerated the construction-start deadline from December 31, 2032 to December 31, 2027.
Key thresholdsFor production in calendar year 2026, lifecycle GHG emissions intensity (kg CO2e/kg H2) and credit (USD/kg, base / with 5x PWA multiplier): below 0.45: 0.656 / 3.280; 0.45 to below 1.5: 0.219 / 1.095; 1.5 to below 2.5: 0.164 / 0.820; 2.5 through 4.0 inclusive: 0.131 / 0.655. Construction must begin by 31 December 2027 under the 2025 amendment. Distinguish the construction deadline from the ten-year credit period beginning when the facility is placed in service.
Support valueFor hydrogen produced in calendar year 2026, the base credit ranges from USD 0.131 to USD 0.656 per kg according to lifecycle emissions intensity. The corresponding amounts with the fivefold prevailing-wage and apprenticeship multiplier range from USD 0.655 to USD 3.280 per kg. Rates are adjusted for inflation by production year; these are not the original 2022 statutory amounts. No aggregate budget amount is asserted here.
Practical implicationProjects must begin construction by December 31, 2027 to qualify; PWA compliance is essentially required to achieve economics adequate for project finance, making labor contracting strategy a credit-determining decision from day one.
Source publication date2026-07-13
Official source
10 sourced values · 0 earlier records
| Source | Publisher | Link checked |
|---|---|---|
| Open official source ↗ | www.irs.gov |