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45V: Clean Hydrogen Production Tax Credit

Federal Agency


Internal Revenue Service (IRS)


To encourage and support the development of clean hydrogen projects.

Applicant and/or Project Eligibility Requirements

To qualify the tax credit, hydrogen needs to be produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen. The qualified clean hydrogen production facility needs to be owned by the taxpayers.

Decarbonization Considerations

Clean hydrogen has a high potential to help decarbonize multiple hard to abate sectors, including heavy vehicles, industrial processes, and power sector. See here for more information:

Equity Considerations

If a new clean hydrogen production facility is planned, consider engaging with community members in the early stage to address challenges and concerns through open conversations. Local governments may consider working with the facility owners to leverage such economic development opportunities to build a clean hydrogen workforce.

Helpful Tips

Tax-exempt entities can leverage these credits through a new mechanism known as "elective" or "direct" pay. To learn more about how these tax credits work for entities with and without tax liability, check out our Funding Guidance here:

Other Notes

Proposed guidance can be found here:

Deadline (Announced or Anticipated)

December 31, 2032

Funding Available

$0.60/kg for projects producing hydrogen with less than 0.45 kg CO2e/kg H2$0.20/kg for projects producing hydrogen with between 0.45 - 1.5 kg CO2e/kg H2$0.15/kg for projects producing hydrogen with between 1.5 - 2.5 kg CO2e/kg H2$0.12/kg for projects producing hydrogen with between 2.5-4 kg CO2e/kg H2 Projects that meet apprenticeship and prevailing wage requirements multiply credit amount by 5.

Max Award Amount

$3/kg H2

Expected Allocations

Uncapped for 10 years

Average Award (Estimated)


Matching Funds


Go to Program Website