Federal Direct Pay and Transferable Production Tax Credits

Section 45(V) creates a new ten-year incentive for clean hydrogen production with a four-tiered applicable percentage structure which is gauged to the amount of greenhouse gas emission reduction. The ten-year tax credit stream begins from when the facility is first placed in service and qualified projects must begin construction by 2033. Eligibility goes beyond new construction and allows retrofit facilities to benefit as well. This incentive cannot be stacked with the Carbon Oxide Sequestration Tax Credit.