The Treasury Department is expected to release tax guidance soon that will shape the nascent hydrogen industry and help determine if its fuel is “clean” as promised. The new 45V tax credit, which was established in the Inflation Reduction Act, offers developers up to $3 per kilogram for low-carbon hydrogen production, which the Biden administration is eyeing to help decarbonize heavy industries such as chemical, cement and steel manufacturing. (…) “Overly restrictive rules governing the hydrogen production tax credit have the potential to impact all production pathways, including those that leverage [carbon capture] technology,” said Hydrogen Forward, a coalition of hydrogen producers, in a statement.

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