(1) the kilograms of qualified clean hydrogen produced by the taxpayer during such taxable year at a qualified clean hydrogen production facility during the 10-year period beginning on the date such facility was originally placed in service, multiplied by
(2) the applicable amount (as determined under subsection (b)) with respect to such hydrogen.
(1) In general
For purposes of subsection (a)(2), the applicable amount shall be an amount equal to the applicable percentage of $0.60. If any amount as determined under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.
(2) Applicable percentage
For purposes of paragraph (1), the applicable percentage shall be determined as follows:
(A) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—
In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—
(i) not greater than 4 kilograms of CO2e per kilogram of hydrogen, and
(ii) not less than 2.5 kilograms of CO2e per kilogram of hydrogen,
(B) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—
In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—
(i) less than 2.5 kilograms of CO2e per kilogram of hydrogen, and
(ii) not less than 1.5 kilograms of CO2e per kilogram of hydrogen,
(C) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—
In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—
(i) less than 1.5 kilograms of CO2e per kilogram of hydrogen, and
(ii) not less than 0.45 kilograms of CO2e per kilogram of hydrogen,
(D) In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 100 percent.
(3) Inflation adjustment
The $0.60 amount in paragraph (1) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under , determined by substituting “2022” for “1992” in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.
(1) Lifecycle greenhouse gas emissions
(A) In general
Subject to subparagraph (B), the term “lifecycle greenhouse gas emissions” has the same meaning given such term under subparagraph (H) of section 211(
(B) GREET model
The term “lifecycle greenhouse gas emissions” shall only include emissions through the point of production (well-to-gate), as determined under the most recent Greenhouse gases, Regulated Emissions, and Energy use in Transportation model (commonly referred to as the “GREET model”) developed by Argonne National Laboratory, or a successor model (as determined by the Secretary).
(2) Qualified clean hydrogen
(A) In general
The term “qualified clean hydrogen” means hydrogen which is 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.
(B) Additional requirements
Such term shall not include any hydrogen unless—
(i) such hydrogen is produced—
such hydrogen is produced—
(I) in the United States (as defined in ) or a possession of the United States (as defined in ),
(II) in the ordinary course of a trade or business of the taxpayer, and
(III) for sale or use, and
(ii) the production and sale or use of such hydrogen is verified by an unrelated party.
(C) Provisional emissions rate
In the case of any hydrogen for which a lifecycle greenhouse gas emissions rate has not been determined for purposes of this section, a taxpayer producing such hydrogen may file a petition with the Secretary for determination of the lifecycle greenhouse gas emissions rate with respect to such hydrogen.
(3) Qualified clean hydrogen production facility
The term “qualified clean hydrogen production facility” means a facility—
(A) owned by the taxpayer,
(B) which produces qualified clean hydrogen, and
(C) the construction of which begins before
(1) Treatment of facilities owned by more than 1 taxpayer
Rules similar to the rules shall apply for purposes of this section.
(2) Coordination with credit for carbon oxide sequestration
No credit shall be allowed under this section with respect to any qualified clean hydrogen produced at a facility which includes carbon capture equipment for which a credit is allowed to any taxpayer under section 45Q for the taxable year or any prior taxable year.
(3) Credit reduced for tax-exempt bonds
Rules similar to the rule under shall apply for purposes of this section.
(4) Modification of existing facilities
For purposes of subsection (a)(1), in the case of any facility which—
(A) was originally placed in service before
(B) after the date such facility was originally placed in service—
after the date such facility was originally placed in service—
(i) is modified to produce qualified clean hydrogen, and
(ii) amounts paid or incurred with respect to such modification are properly chargeable to capital account of the taxpayer,
such facility shall be deemed to have been originally placed in service as of the date that the property required to complete the modification described in subparagraph (B) is placed in service.
(1) In general
In the case of any qualified clean hydrogen production facility which satisfies the requirements of paragraph (2), the amount of the credit determined under subsection (a) with respect to qualified clean hydrogen described in subsection (b)(2) shall be equal to such amount (determined without regard to this sentence) multiplied by 5.
(2) Requirements
A facility meets the requirements of this paragraph if it is one of the following:
(A) A facility—
A facility—
(i) the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and
(ii) which meets the requirements of paragraph (3)(A) with respect to alteration or repair of such facility which occurs after such date.
(B) A facility which satisfies the requirements of paragraphs (3)(A) and (4).
(3) Prevailing wage requirements
(A) In general
The requirements described in this subparagraph with respect to any qualified clean hydrogen production facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—
(i) the construction of such facility, and
(ii) with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2), the alteration or repair of such facility,
(B) Correction and penalty related to failure to satisfy wage requirements
Rules similar to the rules of shall apply.
(4) Apprenticeship requirements
Rules similar to the rules of shall apply.
(5) Regulations and guidance
The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.
Not later than 1 year after the date of enactment of this section, the Secretary shall issue regulations or other guidance to carry out the purposes of this section, including regulations or other guidance for determining lifecycle greenhouse gas emissions.