The US’ 45V hydrogen tax credit is among the most – if not the most – generous incentives for hydrogen production in the world, according to industry experts.

The Biden administration released long-awaited final rules Friday for a tax credit that will send billions of dollars to producers of cleaner hydrogen

The U.S. Treasury Department’s new regulations for the Clean Hydrogen Production Tax Credit (45V) broaden eligibility for hydrogen producers utilizing biomethane or renewable natural gas (RNG).

Plug Power shares surged for a second straight session on new tax credit rules for clean hydrogen production. Last week, the Treasury Department issued the final rules for the tax credits spelled out in the Inflation Reduction Act of 2022.

The Biden administration finalized rules meant to boost domestic production of hydrogen fuel through a new tax credit, a move that might also keep struggling nuclear power plants on line for longer. The highly anticipated guidelines stipulate what kinds of hydrogen projects can qualify for the tax credit.