Clean Hydrogen Credit Inflation Factors and Applicable Amounts for 2023 and 2024 Released, Notice 2024-45

The IRS released the inflation adjustment factors and the resulting applicable amounts for the clean hydrogen production credit for 2023 and 2024.

For 2023, the inflation adjustment factor is one, so the inflation adjusted applicable amounts are the same as those in Code Sec. 45V(b). Thus, the applicable amounts for a kilogram (kg) of qualified clean hydrogen produced in calendar year 2023 are:

• — $0.120 for clean hydrogen produced through a process that results in a lifecycle greenhouse gas (GHG) emissions rate between 4 kilograms and 2.5 kg of CO2e per kg of clean hydrogen;
• — $0.150 if the GHG rate is between 2.5 kg and 1.5 kg;
• — $0.200 if the GHG rate is between 1.5 kg and 0.45 kg; and
• — $0.60 if the GHG rate is less than 0.45 kg.

For 2024, the inflation adjustment factor is 1..0364. Thus, the inflation adjusted applicable amounts for a kilogram of qualified clean hydrogen produced in calendar year 2024 are:

• — $0.124 for clean hydrogen clean hydrogen produced through a process that results in a lifecycle greenhouse gas (GHG) emissions rate between 4 kilograms and 2.5 kilograms of CO2e per kilogram of clean hydrogen;
• — $0.156 if the GHG rate is between 2.5 kg and 1.5 kg;
• — $0.208 if the GHG rate is between 1.5 kg and 0.45 kg; and
• — $0.622 if the GHG rate is less than 0.45 kg.