Policy record
Section 45V Clean Hydrogen Production Tax Credit (IRA, as amended by OBBBA 2025)
Section 45V Clean Hydrogen Production Tax Credit (IRA, as amended by OBBBA 2025) policy record on H2Prism, with its status, summary, checked official source, and record date.
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8 sourced values · 0 earlier records
JurisdictionUSA
Legal statusin_force
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 thresholdsFour GHG emission tiers (kg CO2e / kg H2 → base credit without PWA / full credit with PWA): (1) <0.45 → $0.60/kg base / $3.00/kg full; (2) ≥0.45–<1.5 → $0.213/kg / $1.065/kg; (3) ≥1.5–<2.5 → $0.159/kg / $0.795/kg; (4) ≥2.5–≤4.0 → $0.127/kg / $0.635/kg. Prevailing Wage & Apprenticeship (PWA) compliance triggers a 5× multiplier to reach the full credit. Construction must commence on or before December 31, 2027 (OBBBA amendment; prior IRA deadline was December 31, 2032). Lifecycle GHG ceiling: ≤4 kg CO2e/kg H2.
Support valueUp to $3.00/kg H2 (with PWA); base $0.60/kg (without PWA) for lowest-emission tier. Aggregate IRA budget window is ~$100 bn estimated tax expenditure over 10 years (Treasury FY2027 Tax Expenditure estimates; exact figure varies by uptake).
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.
Official source
| Source | Publisher | Checked |
|---|---|---|
| Open official source ↗ | www.irs.gov | 2026-08-31T17:47:03Z |