Internal Revenue Bulletin 2024-14 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2024–14
April 1, 2024
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
EMPLOYEE PLANS
Notice 2024-29, page 751.
This notice sets forth updates on the corporate bond monthly
yield curve, the corresponding spot segment rates for Febru-
ary 2024 used under § 417(e)(3)(D), the 24-month average
segment rates applicable for March 2024, and the 30-year
Treasury rates, as reflected by the application of § 430(h)(2)
(C)(iv).
INCOME TAX
REG-117631-23, page 754.
These proposed regulations would provide rules for the
new section 45V tax credit for the production of qualified
clean hydrogen that was added by the Inflation Reduction
Act of 2022. The proposed regulations provide guidance
on how to claim the section 45V credit, a production tax
credit, the amount of which is dependent on the quantity
and emissions intensity of the hydrogen produced. The
proposed regulations also provide guidance on the elec-
tion to treat qualified property that is part of a specified
clean hydrogen production facility as energy property
under section 48, which is part of the investment tax
credit under section 46.
Rev. Rul. 2024-7, page 749.
Federal rates; adjusted federal rates; adjusted federal long-
term rate, and the long-term tax exempt rate. For purposes of
sections 382, 1274, 1288, 7872 and other sections of the
Code, tables set forth the rates for April 2024.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
April 1, 2024 Bulletin No. 2024–14

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)
Rev. Rul. 2024-07
This revenue ruling provides various
prescribed rates for federal income tax
purposes for April 2024 (the current
month). Table 1 contains the short-
term, mid-term, and long-term applica-
ble federal rates (AFR) for the current
month for purposes of section 1274(d)
of the Internal Revenue Code. Table 2
contains the short-term, mid-term, and
long-term adjusted applicable federal
rates (adjusted AFR) for the current
month for purposes of section 1288(b).
Table 3 sets forth the adjusted fed-
eral long-term rate and the long-term
tax-exempt rate described in section
382(f). Table 4 contains the appropri-
ate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. How-
ever, under section 42(b)(2), the appli-
cable percentage for non-federally sub-
sidized new buildings placed in service
after July 30, 2008, shall not be less
than 9%. Finally, Table 5 contains the
federal rate for determining the present
value of an annuity, an interest for life
or for a term of years, or a remainder or
a reversionary interest for purposes of
section 7520.
REV. RUL. 2024-07 TABLE 1
Applicable Federal Rates (AFR) for April 2024
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR4.89%4.83%4.80%4.78%
110% AFR5.38%5.31%5.28%5.25%
120% AFR5.88%5.80%5.76%5.73%
130% AFR6.38%6.28%6.23%6.20%
Mid-term
AFR4.30%4.25%4.23%4.21%
110% AFR 4.73%4.68%4.65%4.64%
120% AFR5.17%5.10%5.07%5.05%
130% AFR5.61%5.53%5.49%5.47%
150% AFR6.48%6.38%6.33%6.30%
175% AFR7.58%7.44%7.37%7.33%
Long-term
AFR4.45%4.40%4.38%4.36%
110% AFR4.90%4.84%4.81%4.79%
120% AFR5.35%5.28%5.25%5.22%
130% AFR5.80%5.72%5.68%5.65%
REV. RUL. 2024-07 TABLE 2
Adjusted AFR for April 2024
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR3.70%3.67%3.65%3.64%
Mid-term adjusted AFR3.26%3.23%3.22%3.21%
Long-term adjusted AFR3.37%3.34%3.33%3.32%
Bulletin No. 2024–14 749 April 1, 2024

REV. RUL. 2024-07 TABLE 3
Rates Under Section 382 for April 2024
Adjusted federal long-term rate for the current month3.37%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal
long-term rates for the current month and the prior two months.)
3.37%
REV. RUL. 2024-07 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for April 2024
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit8.02%
Appropriate percentage for the 30% present value low-income housing credit 3.44%
REV. RUL. 2024-07 TABLE 5
Rate Under Section 7520 for April 2024
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a
remainder or reversionary interest
5.20%

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The adjusted applicable federal long-term rate
is set forth for the month of April 2024. See Rev.
Rul. 2024-07, page 749.
Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of April 2024. See Rev. Rul.
2024-07, page 749.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.
Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of April 2024. See Rev. Rul.
2024-07, page 749.
Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
April 2024. See Rev. Rul. 2024-07, page 749.

April 1, 2024 750 Bulletin No. 2024–14

Bulletin No. 2024–14 751 April 1, 2024
Part III
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2024-29
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month aver-
age segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the inter-
est rate on 30-year Treasury securities
under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008 and the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
gle-employer plans (except for CSEC plans
under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under
this provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during speci-
fied periods. To the extent provided under
§ 430(h)(2)(C)(iv), these segment rates
are adjusted by the applicable percentage
of the 25-year average segment rates for
the period ending September 30 of the
year preceding the calendar year in which
the plan year begins.
1
However, an elec-
tion may be made under § 430(h)(2)(D)
(ii) to use the monthly yield curve in place
of the segment rates.
Section 1.430(h)(2)-1(d) provides
rules for determining the monthly cor-
porate bond yield curve,
2
and § 1.430(h)
(2)-1(c) provides rules for determining
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Con-
sistent with the methodology specified in
§ 1.430(h)(2)-1(d), the monthly corporate
bond yield curve derived from February
2024 data is in Table 2024-2 at the end
of this notice. The spot first, second, and
third segment rates for the month of Feb-
ruary 2024 are, respectively, 4.97, 5.22,
and 5.37.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to §
430(h)(2)(C)(iv) to be within the applica-
ble minimum and maximum percentages
of the corresponding 25-year average seg-
ment rates. For this purpose, any 25-year
average segment rate that is less than 5%
is deemed to be 5%. The 25-year average
segment rates for plan years beginning in
2023 and 2024 were published in Notice
2022-40, 2022-40 I.R.B. 266 and Notice
2023-66, 2023-40 I.R.B. 992, respec-
tively. The applicable minimum and max-
imum percentages are 95% and 105% for
plan years beginning in 2023 and 2024.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for March
2024 without adjustment for the 25-year
average segment rate limits are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month

First Segment

Second Segment

Third Segment
March 2024 4.64 5.12 5.10
The adjusted 24-month average seg-
ment rates set forth in the chart below
reflect
§ 430(h)(2)(C)(iv) of the Code. The
24-month averages applicable for March
2024, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates in accordance with § 430(h)(2)
(C)(iv) of the Code, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2023March 20244.755.125.74
2024March 20244.755.125.59
1
Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
2
For earlier periods, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts the method-
ology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market. First, the
set of bonds taken into account has been expanded to include callable bonds for which the call feature is exercisable only during the last year before maturity. Second, a hump adjustment
variable that peaks at 20 years maturity has been added in order to capture the effects of the hump in yields that is often seen around 20 years maturity.

April 1, 2024 752 Bulletin No. 2024–14
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to mul-
tiemployer plans pursuant to § 412. Sec-
tion 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation
described in § 431(c)(6)(A), based on the
plan’s current liability. Section 431(c)
(6)(E)(ii)(I) provides that the interest
rate used to calculate current liability for
this purpose must be no more than 5 per-
cent above and no more than 10 percent
below the weighted average of the rates
of interest on 30-year Treasury securities
during the four-year period ending on the
last day before the beginning of the plan
year. Notice 88-73, 1988-2 C.B. 383,
provides guidelines for determining the
weighted average interest rate. The rate
of interest on 30-year Treasury securities
for February 2024 is 4.38 percent. The
Service determined this rate as the aver-
age of the daily determinations of yield
on the 30-year Treasury bond maturing
in November 2053 determined each day
through February 7, 2024 and the yield
on the 30-year Treasury bond maturing in
February 2054 determined each day for
the balance of the month. For plan years
beginning in March 2024, the weighted
average of the rates of interest on 30-year
Treasury securities and the permissible
range of rates used to calculate current
liability are as follows:
Treasury Weighted Average Rates
For Plan Years Beginning In30-Year Treasury Weighted AveragePermissible Range 90% to 105%
March 20243.262.93 to 3.42
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Notice 2007-81 provides guide-
lines for determining the minimum pres-
ent value segment rates. Pursuant to that
notice, the minimum present value seg-
ment rates determined for February 2024
are as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
February 2024 4.97 5.22 5.37
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development
of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free numbers).

Bulletin No. 2024–14 753 April 1, 2024
Table 2024-2
Monthly Yield Curve for February 2024
Derived from February 2024 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.55.4020.55.4240.55.3660.55.3880.55.39
1.05.2421.05.4241.05.3661.05.3881.05.39
1.55.1021.55.4241.55.3661.55.3881.55.39
2.04.9822.05.4142.05.3662.05.3882.05.39
2.54.9022.55.4142.55.3662.55.3882.55.39
3.04.8423.05.4043.05.3663.05.3883.05.39
3.54.8123.55.3943.55.3663.55.3883.55.39
4.04.8024.05.3944.05.3664.05.3884.05.39
4.54.8024.55.3844.55.3664.55.3884.55.39
5.04.8125.05.3745.05.3665.05.3885.05.39
5.54.8325.55.3745.55.3665.55.3885.55.39
6.04.8526.05.3646.05.3766.05.3886.05.39
6.5
4.8926.55.3646.55.3766.55.3886.55.39
7.04.9227.05.3547.05.3767.05.3887.05.39
7.54.9627.55.3547.55.3767.55.3887.55.39
8.05.0028.05.3448.05.3768.05.3888.05.39
8.55.0428.55.3448.55.3768.55.3888.55.39
9.05.0729.05.3449.05.3769.05.3889.05.39
9.55.1129.55.3449.55.3769.55.3889.55.39
10.05.1430.05.3450.05.3770.05.3890.05.39
10.55.1730.55.3450.55.3770.55.3890.55.39
11.05.2031.05.3451.05.3771.05.3891.05.39
11.55.2331.55.3451.55.3771.55.3891.55.39
12.05.2532.05.3452.05.3772.05.3892.05.39
12.55.2732.55.3452.55.3772.55.3892.55.39
13.05.3033.05.3553.0
5.3773.05.3893.05.39
13.55.3133.55.3553.55.3773.55.3893.55.39
14.05.3334.05.3554.05.3774.05.3894.05.39
14.55.3534.55.3554.55.3774.55.3894.55.39
15.05.3635.05.3555.05.3775.05.3895.05.39
15.55.3735.55.3555.55.3775.55.3895.55.39
16.05.3936.05.3556.05.3776.05.3996.05.39
16.55.3936.55.3556.55.3776.55.3996.55.39
17.05.4037.05.3557.05.3777.05.3997.05.39
17.55.4137.55.3557.55.3877.55.3997.55.39
18.05.4138.05.3558.05.3878.05.3998.05.39
18.55.4238.55.3658.55.3878.55.3998.55.39
19.05.4239.05.3659.05.3879.05.3999.05.39
19.55.4239.55.3659.55.3879.55.3999.5
5.39
20.05.4240.05.3660.05.3880.05.39100.05.39

April 1, 2024 754 Bulletin No. 2024–14
Part IV
Notice of Proposed
Rulemaking
Section 45V Credit for
Production of Clean
Hydrogen; Section 48(a)
(15) Election to Treat
Clean Hydrogen Production
Facilities as Energy
Property
REG-117631-23
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing and notice of public hearing.
SUMMARY: This document contains
proposed regulations relating to the credit
for production of clean hydrogen (clean
hydrogen production credit) and the
energy credit, as established and amended
by the Inflation Reduction Act of 2022,
respectively. The proposed regulations
would provide rules for: determining
lifecycle greenhouse gas emissions rates
resulting from hydrogen production pro-
cesses; petitioning for provisional emis-
sions rates; verifying production and sale
or use of clean hydrogen; modifying or
retrofitting existing qualified clean hydro-
gen production facilities; using electricity
from certain renewable or zero-emissions
sources to produce qualified clean hydro-
gen; and electing to treat part of a spec-
ified clean hydrogen production facility
instead as property eligible for the energy
credit. The proposed regulations would
affect all taxpayers who produce qualified
clean hydrogen and claim the clean hydro-
gen production credit, elect to treat part
of a specified clean hydrogen production
facility as property eligible for the energy
credit, or produce electricity from certain
renewable or zero-emissions sources used
by taxpayers or related persons to produce
qualified clean hydrogen. This document
also provides notice of a public hearing on
the proposed regulations.
DATES: Written or electronic comments
must be received by February 26, 2024.
The public hearing on these proposed
regulations is scheduled to be held on
March 25, 2024, at 10 a.m. (ET). Requests
to speak and outlines of topics to be dis-
cussed at the public hearing must be
received by March 4, 2024. If no outlines
are received by March 4, 2024, the pub-
lic hearing will be cancelled. Requests to
attend the public hearing must be received
by March 18, 2024. The public hearing
will be made accessible to people with
disabilities. Requests for special assis-
tance during the hearing must be received
by March 18, 2024.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemak-
ing Portal at https://www.regulations.gov
(indicate IRS and REG-117631-23) by
following the online instructions for sub-
mitting comments. Requests for a public
hearing must be submitted as prescribed
in the “Comments and Requests for a
Public Hearing” section. Once submitted
to the Federal eRulemaking Portal, com-
ments cannot be edited or withdrawn. The
Department of the Treasury (Treasury
Department) and the IRS will publish for
public availability any comments submit-
ted to the IRS’s public docket. Send paper
submissions to: CC:PA:LPD:PR (REG-
117631-23), Room 5203, Internal Reve-
nue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning these proposed
regulations, the Office of Chief Counsel
(Passthroughs and Special Industries) at
(202) 317-6853 (not a toll-free number);
concerning submissions of comments or
the public hearing, Vivian Hayes at (202)
317-6901 (not a toll-free number) or by
email to publichearings@irs.gov (pre-
ferred).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed reg-
ulations to amend the Income Tax Reg-
ulations (26 CFR part 1) under sections
45V and 48(a)(15) of the Internal Reve-
nue Code (Code), as added to the Code by
section 13204 of Public Law 117-169, 136
Stat. 1818 (August 16, 2022), commonly
known as the Inflation Reduction Act of
2022 (IRA).
The IRA added several provisions to
the Code related to the production of, and
investment in, clean hydrogen, which,
along with the provisions of sections 45V
and 48(a)(15), are described in part I of
this Background section. Part II of this
Background section describes a previous
request for public comment on these pro-
visions.
I. IRA Provisions for Clean Hydrogen
Production and Investment
This part I describes the credit for pro-
duction of clean hydrogen as determined
under section 45V (section 45V credit)
and the irrevocable election to claim an
energy credit under section 48 (section 48
credit) in lieu of the section 45V credit.
Also described are statutory exceptions to
the requirement that electricity be sold to
an unrelated person to be eligible for the
renewable electricity production credit
determined under section 45 (section
45 credit) or the zero-emission nuclear
power production credit determined under
section 45U (section 45U credit). Under
these exceptions, electricity produced by
a taxpayer from a qualified facility under
section 45(d) or a qualified nuclear power
facility under section 45U(b)(1) may be
treated as sold by the taxpayer to an unre-
lated person during the taxable year if the
electricity is used by the taxpayer or a
related person at a qualified clean hydro-
gen production facility to produce quali-
fied clean hydrogen.
A. Section 45V
1. Amount of Credit
Section 45V provides a tax credit for
the production of qualified clean hydro-
gen. For purposes of section 38 of the
Code, section 45V(a) provides that the
clean hydrogen production credit for any
taxable year is an amount equal to the
product of (i) the kilograms of qualified
clean hydrogen produced by the taxpayer

Bulletin No. 2024–14 755 April 1, 2024
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 ser-
vice, and (ii) the applicable amount as
determined under section 45V(b) with
respect to such hydrogen.
Section 45V(b)(1) provides that, for
purposes of section 45V(a)(2), the appli-
cable amount is an amount equal to the
applicable percentage of $0.60. If the
amount so determined is not a multiple of
0.1 cent, then such amount is rounded to
the nearest multiple of 0.1 cent.
Section 45V(b)(2) provides that, for
purposes of section 45V(b)(1), the applica-
ble percentage is determined based on the
lifecycle greenhouse gas emissions (life-
cycle GHG emissions) rate of the process
to produce any qualified clean hydrogen
as follows: (i) if the lifecycle GHG emis-
sions rate is not greater than 4 kilograms
of carbon dioxide equivalent (CO2e) per
kilogram of hydrogen, and not less than
2.5 kilograms of CO2e per kilogram of
hydrogen, then the applicable percentage
is 20 percent; (ii) if the lifecycle GHG
emissions rate is less than 2.5 kilograms
of CO2e per kilogram of hydrogen, and
not less than 1.5 kilograms of CO2e per
kilogram of hydrogen, then the applicable
percentage is 25 percent; (iii) if the life-
cycle GHG emissions rate is less than 1.5
kilograms of CO2e per kilogram of hydro-
gen, and not less than 0.45 kilograms of
CO2e per kilogram of hydrogen, then the
applicable percentage is 33.4 percent; and
(iv) if the lifecycle GHG emissions rate
is less than 0.45 kilograms of CO2e per
kilogram of hydrogen, then the applicable
percentage is 100 percent.
Section 45V(b)(3) provides that the
$0.60 amount in section 45V(a)(1) is
adjusted by multiplying such amount by
the inflation adjustment factor (as deter-
mined under section 45(e)(2), determined
by substituting “2022” for “1992” in sec-
tion 45(e)(2)(B)) for the calendar year in
which the qualified clean hydrogen is pro-
duced. If any amount as increased under
section 45V(b)(3) is not a multiple of 0.1
cent, such amount is rounded to the near-
est multiple of 0.1 cent.
1
Section 45V(e)(1) provides that, in the
case of any qualified clean hydrogen pro-
duction facility that satisfies the require-
ments of section 45V(e)(2), the amount
of the section 45V credit with respect to
qualified clean hydrogen described in
section 45V(b)(2) is equal to the amount
determined under section 45V(a) (deter-
mined without regard to section 45V(e)
(1)) multiplied by five.
A qualified clean hydrogen production
facility meets the requirements of section
45V(e)(2) if: (i) the facility began con-
struction before January 29, 2023, and
with respect to any taxable year, for any
period of such taxable year that is within
the 10-year period beginning on the date
the facility is originally placed in service,
the prevailing wage requirements of sec-
tion 45V(e)(3)(A) are met for any alter-
ation or repair of the facility that occurs
after January 29, 2023 (to the extent appli-
cable);
2
or (ii) the facility satisfies the pre-
vailing wage and apprenticeship (PWA)
requirements of sections 45V(e)(3)(A)
and (4).
3
Generally, the prevailing wage require-
ments under section 45V(e)(3)(A) with
respect to any qualified clean hydrogen
production facility require the taxpayer
to ensure that any laborers and mechan-
ics employed by the taxpayer or by any
contractor or subcontractor in (i) the con-
struction of such facility, and (ii) with
respect to any taxable year, for any por-
tion of such taxable year that is within the
10-year period beginning on the date such
facility was originally placed in service,
the alteration or repair of such facility, are
paid wages at rates not less than the pre-
vailing rates for construction, alteration,
or repair of a similar character in the
locality in which such facility is located as
most recently determined by the Secretary
of Labor, in accordance with subchapter
IV of chapter 31 of title 40 of the United
States Code, commonly known as the
Davis-Bacon Act. Correction and penalty
rules similar to the rules of section 45(b)
(7)(B) also apply.
Section 45V(e)(4) provides that rules
similar to the apprenticeship requirements
of section 45(b)(8) apply for purposes of
section 45V(e)(2).
4

For purposes of section 45V(a), in
the case of a qualified clean hydrogen
production facility that does not satisfy
the requirements of section 45(e)(2), the
amount of the clean hydrogen production
credit for any taxable year is $0.12, $0.15,
$0.20, or $0.60 per kilogram of qualified
clean hydrogen produced (before tak-
ing into account any inflation adjustment
under section 45V(b)(3)), depending on
the lifecycle GHG emissions rate associ-
ated with the facility’s hydrogen produc-
tion process. For facilities meeting the
requirements of section 45V(e)(2), the
credit amount determined under section
45V(a) (as adjusted for inflation subject
to section 45V(b)(3)) is multiplied by five.
2. Definitions
a. Lifecycle Greenhouse Gas Emissions
Section 45V(c)(1)(A) provides that,
subject to section 45V(c)(1)(B), the term
“lifecycle greenhouse gas emissions” has
the same meaning given such term under
section 211(o)(1)(H) of the Clean Air Act
(42 U.S.C. 7545(o)(1)(H)), as in effect on
August 16, 2022. Under section 45V(c)
(1)(B), the term “lifecycle greenhouse
gas emissions” includes emissions only
through the point of production (well-to-
gate), as determined under the most recent
Greenhouse gases, Regulated Emissions,
1
The IRS will publish the inflation-adjusted section 45V applicable amount annually. For the calendar year 2023, the section 45V(b)(3) inflation adjustment factor is equal to one, so the
inflation-adjusted applicable amount remains $0.60 for the calendar year 2023.
2
Section 45V(e)(3)(A)(ii) requires the payment of wages at prevailing rates “with respect to any taxable year, for any portion of such taxable year which is within the period described in
subsection (a)(2)”, with respect to the alteration or repair of the facility. There is no “period described in subsection (a)(2).” The Treasury Department and the IRS interpret the reference to
“subsection (a)(2)” as a reference to section 45V(a)(1) where the 10-year credit period is identified.
3
See proposed §§1.45-7, 1.45-8, 1.45-12, and 1.45V-3 as proposed in the notice of proposed rulemaking (REG-100908-23) published in the Federal Register (88 FR 60018) on August 30,
2023, and corrected at 88 FR 73807 on October 27, 2023.
4
Under proposed §1.45V-3, the PWA requirements for purposes of section 45V(e)(2) would be satisfied if a facility meets the prevailing wage requirements of section 45(b)(7) and proposed
§1.45-7, the apprenticeship requirements of section 45(b)(8) and proposed §1.45-8, and the recordkeeping and reporting requirements of proposed §1.45-12. Those proposed regulations
are outside the scope of this notice of proposed rulemaking and proposed §1.45V-3 is addressed only to the extent necessary for purposes of formatting the proposed regulations that are the
subject of this notice of proposed rulemaking in accordance with CFR standards.

April 1, 2024 756 Bulletin No. 2024–14
and Energy use in Transportation model,
referred to as the “GREET model” com-
monly and in this document, developed by
Argonne National Laboratory, or a succes-
sor model as determined by the Secretary
of the Treasury or her delegate (Secretary).
b. Qualified Clean Hydrogen
Section 45V(c)(2)(A) provides that
the term “qualified clean hydrogen”
means hydrogen that is produced through
a process that results in a lifecycle GHG
emissions rate of not greater than 4 kilo-
grams of CO2e per kilogram of hydrogen.
Section 45V(c)(2)(B) further provides
that the term “qualified clean hydrogen”
does not include any hydrogen unless
(i) such hydrogen is produced (A) in
the United States (as defined in section
638(1) of the Code) or a U.S. territory
(having the meaning of the term “posses-
sion” as defined in section 638(2)), (B) in
the ordinary course of a trade or business
of the taxpayer, and (C) 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
Section 45V(c)(2)(C) provides that,
in the case of any hydrogen for which a
lifecycle GHG emissions rate has not
been determined for purposes of section
45V, a taxpayer producing such hydro-
gen may file a petition with the Secretary
for a determination of the lifecycle GHG
emissions rate with respect to such hydro-
gen, which is referred to as a “provisional
emissions rate” or PER in the proposed
regulations.
d. Qualified Clean Hydrogen Production
Facility
Section 45V(c)(3) provides that the
term “qualified clean hydrogen produc-
tion facility” means a facility (i) owned by
the taxpayer, (ii) that produces qualified
clean hydrogen, and (iii) the construction
of which begins before January 1, 2033.
5

3. Special Rules
a. Treatment of Facilities Owned by More
than One Taxpayer
Section 45V(d)(1) provides that rules
similar to the rules of section 45(e)(3)
apply for purposes of section 45V. Sec-
tion 45(e)(3) provides that, in the case of a
facility in which more than one person has
an ownership interest, except to the extent
provided in regulations prescribed by the
Secretary, production from the facility is
allocated among such persons in propor-
tion to their respective ownership interests
in the gross sales from such facility.
b. Coordination with Section 45Q
Section 45V(d)(2) provides that no
section 45V credit is allowed with respect
to any qualified clean hydrogen produced
at a facility that includes carbon capture
equipment for which a credit is allowed to
any taxpayer as determined under section
45Q (section 45Q credit) for the taxable
year or any prior taxable year.
c. Credit Reduced for Tax-Exempt Bonds
Section 45V(d)(3) provides that rules
similar to the rules under section 45(b)
(3) (credit reduced for tax-exempt bonds)
apply for purposes of section 45V. Sec-
tion 45V(d)(3) is effective for facilities
that begin construction after August 16,
2022. Section 13204(a)(5)(B) of the IRA.
Section 45(b)(3) provides that the amount
of the credit determined under section
45(a) with respect to any facility for any
taxable year (determined after the appli-
cation of section 45(b)(1) and (2) regard-
ing phaseout and inflation adjustment
rules) is reduced by the amount that is the
product of the amount so determined for
such year and the lesser of 15 percent or
a fraction (A) the numerator of which is
the sum, for the taxable year and all prior
taxable years, of proceeds of an issue of
any obligations the interest on which is
exempt from tax under section 103 and
that is used to provide financing for the
qualified facility, and (B) the denomina-
tor of which is the aggregate amount of
additions to the capital account for the
qualified facility for the taxable year and
all prior taxable years. Section 45(b)(3)
further provides that the amounts deter-
mined under section 45(b)(3) for any tax-
able year are determined as of the close
of the taxable year.
d. Modification of Existing Facilities
Section 45V(d)(4) provides that for
purposes of section 45V(a)(1), in the
case of any facility that (A) was orig-
inally placed in service before January
1, 2023, and, prior to the modification
described in section 45V(d)(4)(B), did
not produce qualified clean hydro-
gen, and (B) after the date such facil-
ity was originally placed in service (i)
is modified to produce qualified clean
hydrogen, and (ii) amounts paid or
incurred with respect to such modifi-
cation are properly chargeable to the
capital account of the taxpayer, such
facility is deemed to have been origi-
nally placed in service as of the date the
property required to complete the mod-
ification described in section 45V(d)(4)
(B) is placed in service. Section 45V(d)
(4) is effective for modifications made
after December 31, 2022. See section
13204(a)(5)(C) of the IRA.
B. Electricity Used at a Qualified Clean
Hydrogen Production Facility
Section 45(e)(13) provides that elec-
tricity produced by the taxpayer is treated
as sold by such taxpayer to an unrelated
person during the taxable year if (i) such
electricity is used during such taxable year
by the taxpayer or a person related to the
taxpayer at a qualified clean hydrogen
production facility (as defined in section
45V(c)(3)) to produce qualified clean
hydrogen (as defined in section 45V(c)
(2)); and (ii) such use and production is
verified (in such form or manner as the
Secretary may prescribe) by an unrelated
party. Section 45(e)(13) is effective for
5
Section 45V does not specify an earliest date on which a qualified clean hydrogen production facility must begin construction or be placed in service to be eligible to claim the section 45V
credit. However, the section 45V credit is available for qualified clean hydrogen produced after December 31, 2022. Section 13204(a)(5)(A) of the IRA. Thus, the owner of a qualified clean
hydrogen production facility originally placed in service after December 31, 2012, could claim the section 45V credit for qualified clean hydrogen produced during at least some portion of
the 10-year period described in section 45V(a)(1), provided all other requirements are met.

Bulletin No. 2024–14 757 April 1, 2024
electricity produced after December 31,
2022. See section 13204(b)(3) of the IRA.
Section 45U(c)(2) provides that rules
similar to the rules of section 45(e)(13)
apply for purposes of section 45U. Gener-
ally, section 45U is effective for electric-
ity produced at a qualified nuclear power
facility and sold after December 31, 2023,
in taxable years beginning after that date.
C. Election To Treat Clean Hydrogen
Production Facilities as Energy Property
Section 48(a)(15)(A)(i) provides that,
in the case of any qualified property (as
defined in section 48(a)(5)(D)) that is
part of a specified clean hydrogen pro-
duction facility, such property is treated
as energy property. Section 48(a)(15)(A)
(ii) provides that the energy percentage of
the basis of any qualified property that is
treated as energy property is, for a facility
that is designed and reasonably expected
to produce qualified clean hydrogen with
a lifecycle GHG emissions rate that is:
(i) not greater than 4 kilograms of CO2e
per kilogram of hydrogen, and not less
than 2.5 kilograms of CO2e per kilogram
of hydrogen, 1.2 percent; (ii) less than
2.5 kilograms of CO2e per kilogram of
hydrogen, and not less than 1.5 kilograms
of CO2e per kilogram of hydrogen, 1.5
percent; (iii) less than 1.5 kilograms of
CO2e per kilogram of hydrogen, and not
less than 0.45 kilograms of CO2e per
kilogram of hydrogen, 2 percent; and
(iv) less than 0.45 kilograms of CO2e per
kilogram of hydrogen, 6 percent. Under
section 48(a)(9), the amount of the sec-
tion 48 credit determined for a specified
clean hydrogen production facility under
section 48(a)(15) is multiplied by five if
the facility meets the requirements of sec-
tion 48(a)(9)(B) (regarding application
of certain maximum net output levels of
electrical or thermal energy, beginning
of construction, or prevailing wage and
apprenticeship requirements). However,
the domestic content and energy com-
munities bonuses under section 48(a)(12)
and (a)(14) do not apply to a specified
clean hydrogen production facility.
Section 48(a)(15) is effective for
property placed in service after Decem-
ber 31, 2022, and for any property the
construction of which began before Jan-
uary 1, 2023, only to the extent of the
basis thereof attributable to construction,
reconstruction, or erection after Decem-
ber 31, 2022. See section 13204(c)(3) of
the IRA.
1. Denial of Production Credit
Section 48(a)(15)(B) provides that no
section 45V credit or section 45Q credit is
allowed for any taxable year with respect
to any specified clean hydrogen produc-
tion facility or any carbon capture equip-
ment included at such facility.
2. Specified Clean Hydrogen Production
Facility
Section 48(a)(15)(C) provides that the
term “specified clean hydrogen produc-
tion facility” means any qualified clean
hydrogen production facility (as defined
in section 45V(c)(3)) (i) that is placed in
service after December 31, 2022, (ii) with
respect to which (I) no section 45V credit
or section 45Q credit has been allowed,
and (II) the taxpayer makes an irrevocable
election to have section 48(a)(15) apply,
and (iii) for which an unrelated third party
has verified (in such form or manner as the
Secretary may prescribe) that such facility
produces hydrogen through a process that
results in lifecycle GHG emissions that
are consistent with the hydrogen that such
facility was designed and expected to pro-
duce under section 48(a)(15)(A)(ii).
3. Qualified Clean Hydrogen
Section 48(a)(15)(D) provides that, for
purposes of section 48(a)(15), the term
“qualified clean hydrogen” has the mean-
ing given such term by section 45V(c)(2).
4. Regulations
Section 48(a)(15)(E) provides the
Secretary authority to issue regulations
or other guidance as she determines nec-
essary to carry out the purposes of sec-
tion 48, including regulations or other
guidance that recaptures so much of any
section 48 credit allowed as exceeds the
amount of the credit that would have been
allowed if the expected production were
consistent with the actual verified produc-
tion (or all of the credit so allowed in the
absence of verification).
II. Previous Request for Comments
On November 3, 2022, the Treasury
Department and the IRS published Notice
2022-58, 2022-47 I.R.B. 483. The notice
requested general comments on issues
arising under section 45V and the asso-
ciated clean hydrogen production and
investment incentives in sections 45 and
48. The notice also requested specific
comments concerning (i) definitions; (ii)
boundaries of the well-to-gate analysis for
determining the lifecycle GHG emissions
rate; (iii) the PER process; (iv) record-
keeping and reporting; (v) verification by
unrelated parties; and (vi) coordination
with sections 45, 48, and 45Q. The Trea-
sury Department and the IRS received
over 200 comments from industry partic-
ipants, environmental groups, individu-
als, and other stakeholders. The Treasury
Department and the IRS appreciate the
commenters’ interest and engagement on
these issues. These comments have been
carefully considered in the development
of these proposed regulations.
Explanation of Provisions
I. Overview
Proposed §1.45V-1 would provide
guidance, including definitions of key
terms used in proposed §§1.45V-1 through
1.45V-6 and 1.48-15, to determine the eli-
gibility for, and the amount of, the section
45V credit for the production of qualified
clean hydrogen. The term “section 45V
credit” would be provided at §1.45V-1(a)
(12) and mean the credit for production of
clean hydrogen determined under section
45V, so much of sections 6417 and 6418
that relate to section 45V, and the section
45V regulations. The term “section 45V
regulations” would be provided at pro-
posed §1.45V-1(a)(13) to mean the provi-
sions of §§1.45V-1 through 1.45V-6 and
so much of the regulations under sections
6417 and 6418 that relate to the section
45V credit.
Proposed §1.45V-2 would provide spe-
cial rules for purposes of the section 45V
credit. Proposed §1.45V-4 would provide
procedures for determining lifecycle GHG
emissions rates for qualified clean hydro-
gen. Proposed §1.45V-5 would provide
procedures for verification of qualified

April 1, 2024 758 Bulletin No. 2024–14
clean hydrogen production and sale or use.
Proposed §1.45V-6 would provide rules for
determining the placed in service date for
an existing facility that is modified or retro-
fitted to produce qualified clean hydrogen.
Additionally, proposed §1.48-15 would
provide procedures for a taxpayer to elect
to treat any qualified property that is part
of a specified clean hydrogen production
facility as energy property for purposes of
the section 48 credit.
II. Definitions
Proposed §1.45V-1(a)(2) through (13)
would provide generally applicable defini-
tions of terms for purposes of section 45V,
so much of sections 6417 and 6418 of the
Code that relate to the section 45V credit,
and the section 45V regulations. The defi-
nitions for applicable amount, applicable
percentage, and qualified clean hydrogen
production facility would generally reflect
the statutory definitions without additional
elaboration on the terms. See proposed
§1.45V-1(a)(2), (3), and (10). This part II
discusses those definitions in the proposed
regulations that provide additional clarity
beyond the statutory language.
A. Facility
Proposed §1.45V-1(a)(7)(i) would pro-
vide that, for purposes of the definition
of a qualified clean hydrogen production
facility provided at section 45V(c)(3), the
term “facility” means a single production
line that is used to produce qualified clean
hydrogen. A “single production line”
would include all components of property
that function interdependently to produce
qualified clean hydrogen. Components of
property are functionally interdependent if
the placing in service of each component
is dependent upon the placing in service
of each of the other components to pro-
duce qualified clean hydrogen. Proposed
§1.45V-1(a)(7)(ii) would provide that a
facility does not include equipment used
to condition or transport hydrogen beyond
the point of production. A facility would
also not include electricity production
equipment used to power the hydrogen
production process, including any carbon
capture equipment associated with the
electricity production process. Proposed
§1.45V-1(a)(7)(iii) would provide that
components that have a purpose in addi-
tion to the production of qualified clean
hydrogen may be part of a facility if such
components function interdependently
with other components to produce qual-
ified clean hydrogen. Proposed §1.45V-
1(a)(7)(iv) would provide an example to
illustrate the definition of facility for pur-
poses of section 45V.
B. Lifecycle greenhouse gas emissions
Proposed §1.45V-1(a)(8)(i) would
incorporate the statutory definition of the
term “lifecycle greenhouse gas emissions”
under section 45V(c)(1)(A) and (B), spe-
cifically providing that the term has the
same meaning as that in 42 U.S.C. 7545(o)
(1)(H) as in effect on August 16, 2022, and
includes emissions only through the point
of production (well-to-gate) as determined
under the most recent GREET model.
C. Most recent GREET Model
Proposed §1.45V-1(a)(8)(ii) would
provide that the term “most recent
GREET model” means the latest version
of 45VH2-GREET developed by Argonne
National Laboratory (ANL) that is pub-
licly available on the first day of the tax-
payer’s taxable year in which the qualified
clean hydrogen for which the taxpayer
is claiming the section 45V credit was
produced.
6
After consultation with the
Department of Energy (DOE), the Trea-
sury Department and the IRS believe that
the use of the latest version of 45VH2-
GREET would be appropriate because it
is tailored to the administration of the sec-
tion 45V tax credit and includes features
that make it easy to use for taxpayers. Use
of the latest version of 45VH2-GREET
would also ensure that the pathways and
approaches provided for determining
well-to-gate emissions for various hydro-
gen production processes are of sufficient
methodological certainty to be appropriate
for determining eligibility of tax credits.
The latest version of 45VH2-GREET is
the only variant of GREET that is suit-
able for use and may be used to determine
emissions rates for purposes of the section
45V credit.
Further, proposed §1.45V-1(a)(8)
(ii) would provide that, if a version of
45VH2-GREET becomes publicly avail-
able after the first day of the taxable year
of production (but still within such taxable
year), then the taxpayer may, in its discre-
tion, treat such version of 45VH2-GREET
as the most recent GREET model.
Instead of defining “most recent
GREET model” to be the latest version of
45VH2-GREET that is publicly available
on the first day of the taxpayer’s taxable
year, an alternative approach would be for
the Secretary to determine that the latest
version of 45VH2-GREET is an appro-
priate “successor model,” as provided by
section 45V(c)(1)(B), for the purpose of
administering the section 45V tax credit.
The Treasury Department and the IRS
request comment on these approaches.
D. Emissions through the point of
production (well-to-gate)
Proposed §1.45V-1(a)(8)(iii) would
provide that, for purposes of section
45V(c)(1)(B) and proposed §1.45V-1(a)
(8)(i), the term “emissions through the
point of production (well-to-gate)” means
the aggregate lifecycle GHG emissions
related to hydrogen produced at a hydro-
gen production facility during the taxable
year through the point of production.
It includes emissions associated with
feedstock growth, gathering, extraction,
processing, and delivery to a hydrogen
production facility. It also includes the
emissions associated with the hydrogen
production process, inclusive of the elec-
tricity used by the hydrogen production
facility and any capture and sequestration
of carbon dioxide generated by the hydro-
gen production facility.
E. Qualified clean hydrogen
Proposed §1.45V-1(a)(9)(i) would
incorporate the statutory definition of the
6
45VH2-GREET is a user interface designed to accept input related to a hydrogen production facility, execute GREET calculations in the background, and display the well-to-gate carbon
intensity of produced hydrogen in kg of CO2e/kg of H2. 45VH2-GREET is currently available at www.energy.gov/45vresources. Successor locations for 45VH2-GREET will be provided in
IRS forms and instructions.

Bulletin No. 2024–14 759 April 1, 2024
term “qualified clean hydrogen” provided
at section 45V(c)(2)(A) and (B), including
the requirement that the hydrogen be pro-
duced (i) in the United States or a U.S. ter-
ritory (meaning possession as provided in
section 638(2)); (ii) in the ordinary course
of a trade or business of the taxpayer; and
(iii) for sale or use. Proposed §1.45V-1(a)
(9)(i) would provide that, to qualify as
qualified clean hydrogen, the production
and sale or use of such hydrogen must be
verified by an unrelated party (as required
by section 45V(c)(2)(B)(ii)). See also pro-
posed §1.45V-5.
Proposed §1.45V-1(a)(9)(ii) would pro-
vide that for purposes of section 45V(c)
(2)(B)(i)(III) and proposed §1.45V-1(a)
(9)(i)(C) the term “for sale or use” means
for the primary purpose of making such
hydrogen ready and available for sale or
use. Storage of hydrogen before its sale or
use would not disqualify such hydrogen
from being considered produced for sale
or use.
III. Rules of General Applicability
Proposed §1.45V-1(b)(1) would pro-
vide the general rules for calculating the
amount of the section 45V credit.
Proposed §1.45V-1(b)(2) would pro-
vide that, for purposes of section 45V(a)
(1) and proposed §1.45V-1(b)(1), the term
“taxpayer” means the taxpayer that owns
the qualified clean hydrogen production
facility at the time of the facility’s pro-
duction of qualified clean hydrogen with
respect to which the section 45V credit is
claimed, regardless of whether such tax-
payer is treated as a producer under sec-
tion 263A of the Code or under any other
provision of law with respect to such qual-
ified clean hydrogen. This rule is intended
to avoid unintended consequences that
could arise with respect to contract man-
ufacturing and tolling arrangements under
§1.263A-2(a)(1)(ii)(A) and (a)(1)(ii)(B)
(1) in the context of the section 45V credit,
as well as to simplify the administration of
the section 45V credit and provide clarity
for taxpayers.
Proposed §1.45V-1(c) would provide
that, subject to any applicable Code sec-
tions that may limit the section 45V credit
amount, the section 45V credit for any
taxable year is determined with respect
to the qualified clean hydrogen produced
by the taxpayer during that taxable year
although the verification of the produc-
tion and sale or use of such hydrogen
may occur in a later taxable year. How-
ever, the taxpayer would not be eligible
to claim the section 45V credit until all
relevant verification requirements, and
the verification itself, have been com-
pleted. Therefore, despite such verifi-
cation occurring in a later taxable year,
the section 45V credit would be properly
claimed with respect to the taxable year
of hydrogen production and subject to
the general period of limitations for fil-
ing a claim for credit or refund. Thus, if
verification occurred after the extended
return filing deadline for the taxable year
in which the hydrogen was produced, the
taxpayer would need to file an amended
return or administrative adjustment
request (AAR) to claim the section 45V
credit for such hydrogen. The Treasury
Department and the IRS request com-
ments on this proposed rule, specifically
whether taxpayers anticipate they will
be able to complete all the requirements
for claiming the section 45V credit,
including the proposed requirements
for verification specified below, by the
extended return filing deadline for the
taxable year of hydrogen production. If
taxpayers anticipate that they will not be
able to complete all the requirements by
such filing deadline, comments are also
requested on what specific alternatives to
the proposed rule, if any, should be con-
sidered and their rationale.
IV. Special Rules
Proposed §1.45V-2(a) would address
the coordination between the section 45V
credit and the section 45Q credit.
Proposed §1.45V-2(b)(1) would pro-
vide an anti-abuse rule that would make
the section 45V credit unavailable in
extraordinary circumstances in which,
based on a consideration of all the rele-
vant facts and circumstances, the primary
purpose of the production and sale or use
of qualified clean hydrogen is to obtain
the benefit of the section 45V credit in a
manner that is wasteful, such as the pro-
duction of qualified clean hydrogen that
the taxpayer knows or has reason to know
will be vented, flared, or used to produce
hydrogen.
If the cost of producing qualified
clean hydrogen were to be less than the
amount of the section 45V credit that
would be available with respect to such
hydrogen, the Treasury Department and
the IRS are concerned that taxpayers
may have an incentive to produce qual-
ified clean hydrogen solely for the pur-
pose of exploiting the section 45V credit
in a manner that is inconsistent with a
purpose of section 45V, which is to pro-
vide an incentive to produce qualified
clean hydrogen for a productive use.
Producing and selling or using qualified
clean hydrogen with the primary purpose
of obtaining the benefit of the section
45V credit in a wasteful manner would
not, in certain circumstances, satisfy the
requirement in section 45V(c)(2)(B)(i)
(II) for hydrogen to be produced in the
ordinary course of a trade or business of
the taxpayer. Proposed §1.45V-2(b)(2)
would provide an example illustrating
this anti-abuse rule.
V. Procedures for Determining Lifecycle
Greenhouse Gas Emissions Rates for
Qualified Clean Hydrogen
Proposed §1.45V-4(a) would provide
that the amount of the section 45V credit
is determined under section 45V(a) and
proposed §1.45V-1(b) based upon the
lifecycle GHG emissions rate (as defined
in proposed §1.45V-1(a)(8)(i)) of all
hydrogen produced at a qualified clean
hydrogen production facility (as defined
in proposed §1.45V-1(a)(10)) during the
taxable year. This determination is made
following the close of each such taxable
year and must include all hydrogen pro-
duction from the year. Further, proposed
§1.45V-4(a) would provide that the life-
cycle GHG emissions rate for purposes of
section 45V is determined under the most
recent GREET model (as defined in pro-
posed §1.45V-1(a)(8)(ii)). Additionally,
proposed §1.45V-4(a) would provide that
in the case of any hydrogen for which a
lifecycle GHG emissions rate has not been
determined under the most recent GREET
model for purposes of section 45V, a tax-
payer producing such hydrogen may file
a petition with the Secretary for a deter-
mination of the lifecycle GHG emissions
rate with respect to such hydrogen (a pro-
visional emissions rate (PER)).

April 1, 2024 760 Bulletin No. 2024–14
A. GREET model
Proposed §1.45V-4(b) would provide
procedures to calculate the lifecycle GHG
emissions rate of hydrogen produced at
a hydrogen production facility using the
most recent GREET model as defined in
proposed §1.45V-1(a)(8)(ii) (referring to
45VH2-GREET). Proposed §1.45V-4(b)
would provide that for each taxable year
during the period described in section
45V(a)(1), a taxpayer claiming the section
45V credit determines the lifecycle GHG
emissions rate of hydrogen produced
at a hydrogen production facility using
the most recent GREET model. Such a
determination is made separately for each
hydrogen production facility the taxpayer
owns and as of the close of each respec-
tive taxable year in which such production
occurs (that is, such a determination is
made for that taxable year’s total hydro-
gen production at a hydrogen production
facility). Proposed §1.45V-4(b) would
provide that in calculating the lifecycle
GHG emissions rate for purposes of deter-
mining the amount of the section 45V
credit, the taxpayer must accurately enter
all information about its qualified clean
hydrogen production facility requested
within the interface of 45VH2-GREET in
compliance with the most recent version
of the Guidelines to Determine Well-to-
Gate Greenhouse Gas (GHG) Emissions
of Hydrogen Production Pathways Using
45VH2-GREET (GREET User Man-
ual), which currently can be found at:
www.energy.gov/45vresources. Current
45VH2-GREET, previous versions of
45VH2-GREET, and subsequent updates
to 45VH2-GREET can be found at www.
energy.gov/45vresources. Proposed
§1.45V-4(b) would provide that informa-
tion for the location of 45VH2-GREET
and accompanying documentation will be
included in the instructions to the Form
7210, Clean Hydrogen Production Credit,
or any successor form(s).
45VH2-GREET includes various
hydrogen production pathways. As of the
publication date of these proposed regu-
lations, 45VH2-GREET includes the fol-
lowing hydrogen production pathways—
(1) Steam methane reforming (SMR)
of natural gas, with potential carbon cap-
ture and sequestration (CCS);
(2) Autothermal reforming (ATR) of
natural gas, with potential CCS;
(3) SMR of landfill gas with potential
CCS;
(4) ATR of landfill gas with potential
CCS;
(5) Coal gasification with potential
CCS;
(6) Biomass gasification with corn sto-
ver and logging residue with no significant
market value with potential CCS;
(7) Low-temperature water electrolysis
using electricity; and
(8) High-temperature water electrol-
ysis using electricity and potential heat
from nuclear power plants.
As described in Guidelines to Deter-
mine Well-to-Gate Greenhouse Gas
(GHG) Emissions of Hydrogen Production
Pathways Using 45VH2-GREET (GREET
User Manual), certain parameters in
45VH2-GREET are fixed assumptions,
referred to as “background data” in this
document. Users of 45VH2-GREET may
not change background data. Examples of
background data include upstream meth-
ane loss rates, emissions associated with
power generation from specific genera-
tor types, and emissions associated with
regional electricity grids. Background data
are parameters for which bespoke inputs
from hydrogen producers are unlikely
to be independently verifiable with high
fidelity, given the current status of verifi-
cation mechanisms. The Treasury Depart-
ment and the IRS seek comment on the
readiness of verification mechanisms that
could be utilized for certain background
data in 45VH2-GREET if it were reverted
to foreground data in future releases. For
example, the upstream methane loss rate
is background data in 45VH2-GREET,
and the Treasury Department and the IRS
seek comment on conditions, if any, under
which the methane loss rate may in future
releases become foreground data (such
as certificates that verifiably demonstrate
different methane loss rates for natural
gas feedstocks, sometimes described as
responsibly sourced natural gas).
45VH2-GREET allows users to input
the quantity of valorized co-products (that
is, co-products from the hydrogen produc-
tion process that are productively utilized
or sold) and allocates emissions to those
co-products (rather than to the hydrogen
production) as described in Guidelines
to Determine Well-to-Gate Greenhouse
Gas (GHG) Emissions of Hydrogen Pro-
duction Pathways Using 45VH2-GREET
2023. As described in that document,
45VH2-GREET utilizes the “system
expansion” approach for all co-products if
possible, but restricts the amount of steam
co-product that reformers can claim based
on the quantity of steam that an optimally
designed reformer is expected to be capa-
ble of producing based on modeling from
the National Energy Technology Labora-
tory.
7
This restriction is included within
the model to avoid incentivizing gen-
eration or over-production of hydrogen
co-products like steam to enable access
to a higher tax credit value by artificially
reducing the calculated carbon intensity
of the hydrogen (for example, by com-
bustion of fuel onsite that is unnecessary
for hydrogen production). The Treasury
Department and the IRS seek comments
on this approach, including whether alter-
native co-product accounting methods,
such as physical allocation (for example,
energy allocation or mass allocation) or
allocation based on other characteristics,
would better ensure well-to-gate carbon
intensity of hydrogen production is accu-
rately represented.
B. Provisional emissions rate
Proposed §1.45V-4(c)(1) would pro-
vide that, for purposes of section 45V(c)
(2)(C) and proposed §1.45V-4(a), the term
“provisional emissions rate” or “PER”
means the lifecycle GHG emissions rate
of the process by which qualified clean
hydrogen is produced by the taxpayer at a
qualified clean hydrogen production facil-
ity as determined by the Secretary under
proposed §1.45V-4(c).
Proposed §1.45V-4(c)(2)(i) would pro-
vide that a taxpayer may not file a peti-
tion with the Secretary for a PER unless
7
National Energy Technology Laboratory, DOE, “Comparison of Commercial, State-of-the-Art, Fossil-Based Hydrogen Production Technologies,” April 12, 2022, available at https://www.
netl.doe.gov/energy-analysis/details?id=ed4825aa-8f04-4df7-abef-60e564f636c9.

Bulletin No. 2024–14 761 April 1, 2024
a lifecycle GHG emissions rate has not
been determined under the most recent
GREET model (as defined in proposed
§1.45V-1(a)(8)(ii) as 45VH2-GREET)
for hydrogen produced by the taxpayer at
a hydrogen production facility. Proposed
§1.45V-4(c)(2)(i) would further provide
that a lifecycle GHG emissions rate has
not been determined under the most recent
GREET model with respect to hydrogen
produced by the taxpayer at a hydrogen
production facility if it uses a hydrogen
production pathway that is not included in
the most recent GREET model—that is, if
either the feedstock used by such facility
or the facility’s hydrogen production tech-
nology is not included in the most recent
GREET model.
For example, the initial version of
45VH2-GREET does not model every
possible biomass fuel as a feedstock nor
does it represent all hydrogen production
technologies that are currently of com-
mercial interest or that may be commer-
cially viable in the future, including geo-
logic hydrogen, trigeneration, or other
technologies if sufficient technical anal-
ysis had not been completed at the time
the model was published. A taxpayer
with one of these types of hydrogen pro-
duction pathways may use the PER pro-
cess to obtain carbon intensities because
such hydrogen production technolo-
gies or feedstocks are not currently in
45VH2-GREET. To use the PER process,
the hydrogen production pathway that
the taxpayer is utilizing must either be
consuming a feedstock that is not repre-
sented in 45VH2-GREET (for example, a
type of biomass that is not represented in
the model) or using a hydrogen produc-
tion technology that is not represented in
45VH2-GREET (for example, technolo-
gies used to drill for geologic hydrogen
or trigeneration that can use a fuel cell to
co-produce hydrogen, heat, and power).
A taxpayer may not use the PER process
if its feedstock and hydrogen production
technology are represented in 45VH2-
GREET, even if the taxpayer disagrees
with the underlying assumptions (that is,
background data) or calculation approach
used by the most recent 45VH2-GREET.
Future versions of 45VH2-GREET may
include additional hydrogen production
pathways, such as geologic hydrogen, as
sufficient technical information becomes
available to provide consistent treatment
in 45VH2-GREET.
Proposed §1.45V-4(c)(2)(i) would also
provide that, if a taxpayer’s request for an
emissions value from the DOE under pro-
posed §1.45V-4(c)(5) with respect to the
hydrogen produced by the taxpayer at a
hydrogen production facility is pending at
the time such hydrogen production facil-
ity’s pathway is included in an updated
version of 45VH2-GREET, the taxpay-
er’s request for an emissions value will be
automatically denied.
Proposed §1.45V-4(c)(2)(ii) would
specify that, notwithstanding proposed
§1.45V-1(a)(8)(ii), for the taxable year in
which the hydrogen production pathway
the taxpayer uses to produce hydrogen at a
qualified clean hydrogen production facil-
ity is first included in an updated version
of 45VH2-GREET, the updated version
of 45VH2-GREET will be considered the
most recent GREET model with respect to
the hydrogen produced by the taxpayer at
the hydrogen production facility.
1. Process for Filing a Provisional
Emissions Rate Petition
Proposed §1.45V-4(c)(3) would pro-
vide that a taxpayer petitions the Secretary
for a PER by attaching a PER petition to its
Federal income tax return or information
return for the first taxable year of hydro-
gen production ending within the 10-year
period described in section 45V(a)(1) for
which the taxpayer claims the section 45V
credit for hydrogen to which the PER peti-
tion relates and for which a lifecycle GHG
emissions rate has not been determined, as
defined under proposed §1.45V-4(c)(2)(i).
Proposed §1.45V-4(c)(3) would provide
that a PER petition must contain (i) an
emissions value obtained from the DOE
setting forth the DOE’s analytical assess-
ment of the lifecycle GHG emissions rate
associated with the facility’s hydrogen
production pathway, and (ii) a copy of
the taxpayer’s request to the DOE for an
emissions value, including any informa-
tion that the taxpayer provided to the DOE
pursuant to the emissions value request
process specified in proposed §1.45V-4(c)
(5). Proposed §1.45V-4(c)(3) would fur-
ther provide that, if the taxpayer obtained
more than one emissions value from the
DOE, then the PER petition must contain
the emissions value setting forth the life-
cycle GHG emissions rate of the hydrogen
for which the section 45V credit is claimed
on the Form 7210, Clean Hydrogen Pro-
duction Credit, or any successor form(s),
to which the PER petition is attached.
2. Provisional Emissions Rate
Determination
Proposed §1.45V-4(c)(4) would pro-
vide that upon the IRS’s acceptance of
the taxpayer’s Federal income tax return
or information return containing a PER
petition, the emissions value specified
on such PER petition will be deemed
accepted. Proposed §1.45V-4(c)(4) would
provide that a taxpayer would be able to
rely upon an emissions value provided by
the DOE for purposes of calculating and
claiming a section 45V credit, provided
that any information, representations, or
other data provided to the DOE in support
of the request for an emissions value are
accurate. Proposed §1.45V-4(c)(4) would
also state that the IRS’s deemed accep-
tance of such emissions value is the Secre-
tary’s determination of the PER. Proposed
§1.45V-4(c)(4) would state, however, that
the production and sale or use of such
hydrogen must be verified by an unrelated
party under section 45V(c)(2)(B)(ii) and
in compliance with the procedures pro-
vided in proposed §1.45V-5. Proposed
§1.45V-4(c)(4) would state that such ver-
ification and any information, representa-
tions, or other data provided to the DOE
in support of the request for an emissions
value are subject to later examination by
the IRS.
3. Department of Energy Emissions Value
Request Process
Proposed §1.45V-4(c)(5) would pro-
vide that, in order to obtain an emissions
value, an applicant must submit a request
for an emissions value following proce-
dures that will be specified by the DOE.
The emissions value request process will
open on April 1, 2024.
Proposed §1.45V-4(c)(5) would also
provide that emissions values will be eval-
uated using the same well-to-gate system
boundary that is employed in 45VH2-
GREET, as proposed in §1.45V-1(a)(8)
(iii). Additionally, proposed §1.45V-4(c)(5)

April 1, 2024 762 Bulletin No. 2024–14
would also provide that if applicable, back-
ground data parameters in 45VH2-GREET
would also be treated as background data
(with fixed values that an applicant cannot
change) in the emissions value request pro-
cess. The emissions value request process
would be subject to any guidance issued
under section 45V, including any guidance
related to the use of EACs.
Proposed §1.45V-4(c)(5) would also
provide that an applicant may request an
emissions value from the DOE only after a
front-end engineering and design (FEED)
study or similar indication of project
maturity, such as project specification
and cost estimation sufficient to inform a
final investment decision, has been com-
pleted for the hydrogen production facil-
ity. Forthcoming guidance from the DOE,
which will be published prior to the April
1, 2024, opening of the emissions value
request process, will specify criteria the
DOE intends to consider in evaluating
whether a FEED study has been com-
pleted or that a similar indicator of project
readiness has been achieved. The Treasury
Department and the IRS seek comments
on appropriate indicators of project read-
iness that should be in place before an
applicant requests an emissions value to
ensure that requests correspond to hydro-
gen production facilities with significant
commercial interest, and standards against
which these indicators could be measured.
Additionally, proposed §1.45V-4(c)(5)
would provide that the DOE may decline
to review applications that are not respon-
sive, including those applications that use a
hydrogen production technology and feed-
stock already in GREET or applications that
are incomplete. Guidance and procedures for
applicants to request and obtain an emissions
value from the DOE will be published by the
DOE,
8
including a process for, under limited
circumstances, a revision to the DOE’s initial
analytical assessment of an emissions value,
such as to address revised technical informa-
tion or facility design and operation.
4. Effect of Provisional Emissions Rate
Proposed §1.45V-4(c)(6) would pro-
vide that a taxpayer may use a PER deter-
mined by the Secretary to calculate the
amount of the clean hydrogen production
credit under section 45V(a) and proposed
§1.45V-1(b) with respect to qualified clean
hydrogen produced by the taxpayer at a
qualified clean hydrogen production facil-
ity beginning with the first taxable year in
which a PER determined by the Secretary
has been obtained and for any subsequent
taxable year during the 10-year period
beginning on the date such facility was
originally placed in service, provided all
other requirements of section 45V are met,
and until the lifecycle GHG emissions rate
of such hydrogen has been determined
(for purposes of section 45V(c)(2)(C))
under the most recent GREET model (as
defined in proposed §1.45V-1(a)(8)(ii)).
Proposed §1.45V-4(c)(6) would pro-
vide that the Secretary’s PER determina-
tion is not an examination or an inspec-
tion of books of account for purposes of
section 7605(b) of the Code, and would
not preclude or impede the IRS (under
section 7605(b) or any administrative
provisions adopted by the IRS) from later
examining a return or inspecting books
or records with respect to any taxable
year for which the section 45V credit is
claimed. Proposed §1.45V-4(c)(6) would
provide that a verification report submit-
ted under section 45V(c)(2)(B)(ii) and
§1.45V-5 and any information, represen-
tations, or other data provided to the DOE
in support of an emissions value request
would still be subject to IRS examination.
Further, proposed §1.45V-4(c)(6) would
state that a PER determination would not
mean that the IRS has determined that all
the requirements of section 45V have been
satisfied for any taxable year, nor would it
create an inference that such a presump-
tion exists.
C. Use of energy attribute certificates
The Treasury Department and the IRS,
in consultation with the United States
Environmental Protection Agency (EPA)
and the DOE, have preliminarily deter-
mined that energy attribute certificates
(EACs) may be considered under certain
conditions in documenting purchased
electricity inputs and assessing emissions
impacts of electricity used in the produc-
tion of hydrogen for purposes of the sec-
tion 45V credit.
9
For purposes of these
proposed regulations, the term “EACs”
refers solely to EACs that represent attri-
butes of electricity generated by a specific
facility or source. The EPA has advised
that EACs are an established mechanism
for substantiating the purchase of electric-
ity from zero GHG-emitting sources and
that the use of EACs with attributes that
meet certain criteria is an appropriate way
for the Treasury Department and the IRS
to document electricity inputs to electro-
lytic hydrogen production. Such EACs can
also serve as a reasonable methodologi-
cal proxy for quantifying certain indirect
emissions associated with electricity for
purposes of the section 45V credit. Sim-
ilarly, the EPA and the DOE have advised
that it would be appropriate for EACs with
attributes that meet certain criteria to be
included as part of the basis for assessing
emissions for purposes of the section 45V
credit. The Treasury Department and the
IRS have preliminarily determined that
the use of certain EACs, which satisfy the
qualifying EAC requirements (as specified
in proposed §1.45V-4(d)(3)), is consistent
with the references to subparagraph (H)
of section 211(o)(1) of the Clean Air Act
(42 U.S.C. 7545(o)(1)(H)) and the most
recent GREET model, as specified in sec-
tion 45V(c)(1).
Proposed §1.45V-4(d)(1) would pro-
vide that for purposes of section 45V, if
a taxpayer determines a lifecycle GHG
emissions rate for hydrogen produced at
a hydrogen production facility using the
most recent GREET model (as defined in
proposed §1.45V-1(a)(8)(ii)) or a PER (as
defined in proposed §1.45V-4(c)(1)), then
the taxpayer may reflect in GREET or
include in a PER such hydrogen produc-
tion facility’s use of electricity as being
from a specific electricity generating facil-
ity rather than from the regional electricity
grid (as represented in 45VH2-GREET)
only if the taxpayer acquires and retires
a qualifying EAC (as defined in proposed
§1.45V-4(d)(2)(iv)) for each unit of elec-
tricity that the taxpayer claims from such
8
DOE will provide guidance and procedures at www.energy.gov/45vresources.
9
EPA Letter, available at https://home.treasury.gov/system/files/136/45V-NPRM-EPA-letter.pdf; DOE, “Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the
Section 45V Clean Hydrogen Production Tax Credit,” Washington, DC (2023), available at www.energy.gov/45vresources.

Bulletin No. 2024–14 763 April 1, 2024
source. For example, one megawatt-hour
of electricity used to produce hydrogen
would need to be matched with one mega-
watt-hour of qualifying EACs. The Trea-
sury Department and the IRS seek com-
ments on whether a different treatment
would be more appropriate to account for
transmission and distribution line losses.
Further, proposed §1.45V-4(d)(1)
would provide that to satisfy this require-
ment, a taxpayer’s acquisition and retire-
ment of qualifying EACs must also be
recorded in a qualified EAC registry or
accounting system (as defined in proposed
§1.45V-4(d)(2)(v)) so that the acquisition
and retirement of such EACs may be ver-
ified by a qualified verifier (as defined in
proposed §1.45V-5(h)).
The double counting

of EACs and their
underlying attributes would undermine the
integrity of lifecycle GHG emissions rate
determinations that incorporate EACs. A
double counting occurs if two different
parties claim the same environmental ben-
efits from the same generated energy.
10

Uniformly requiring claims of using elec-
tricity generated from specific sources
to be evidenced by EACs that meet the
requirements of proposed §1.45V-4(d)(1)
would mitigate the risk of double count-
ing. Thus, proposed §1.45V-4(d)(1) would
provide that certain requirements must be
met regardless of whether the electricity
generating facility giving rise to the quali-
fying EAC is grid connected, directly con-
nected, or co-located with the hydrogen
production facility (that is, regardless of
whether the underlying source of the qual-
ifying EAC physically supplies electricity
through a direct connection to the hydro-
gen production facility).
1. Definitions Related to Use of Energy
Attribute Certificates
Proposed §1.45V-4(d)(2)(i) would
define the term “commercial operations
date” or “COD” as the date on which a
facility that generates electricity begins
commercial operations. The COD, as
defined here, is the first date of the oper-
ation of the relevant electricity generating
facility. The general rules for determining
an electricity generating facility’s placed
in service date for Federal income tax pur-
poses would not apply in determining its
COD.
Proposed §1.45V-4(d)(2)(ii) would
define the term “energy attribute certifi-
cate” or “EAC” to mean a tradeable con-
tractual instrument, issued through a qual-
ified EAC registry or accounting system
(as defined in proposed §1.45V-4(d)(2)
(v)), that represents the energy attributes
of a specific unit of energy produced. An
EAC may be acquired with or separately
from the underlying energy it represents.
An EAC can be retired by or on behalf
of its owner, which is the party that has
the right to claim the underlying attri-
butes represented by an EAC. Renewable
energy certificates (RECs) and other sim-
ilar energy certificates issued through a
registry or accounting system are forms of
EACs.
Proposed §1.45V-4(d)(2)(iii) would
define the term “eligible EAC” to mean
an EAC that, with respect to the electric-
ity to which the EAC relates, provides, at
minimum, the following information: (i)
a description of the electricity generat-
ing facility, including the technology and
feedstock used to generate the electricity;
(ii) the amount and units of electricity;
(iii) the date on which the facility that gen-
erated the electricity first began commer-
cial operations (referred to as the commer-
cial operations date (COD)) (as defined
in proposed §1.45V-4(d)(2)(i)); (iv) for
electricity that is generated before Jan-
uary 1, 2028, the calendar year in which
such electricity was generated; (v) for
electricity that is generated after Decem-
ber 31, 2027, the date and hour in which
such electricity was generated; and (vi) a
unique project identification number or
assigned identifier for each EAC that can
be used to cross reference any additional
electricity generating facility information
that may be needed, such as location.
Proposed §1.45V-4(d)(2)(iv) would
define the term “qualifying EAC” to
mean an eligible EAC (as defined in
proposed §1.45V-4(d)(2)(iii)) that meets
the requirements of proposed §1.45V-
4(d)(3) and for which the satisfaction of
those requirements has been verified by a
qualified verifier (as defined in proposed
§1.45V-5(h)).
Proposed §1.45V-4(d)(2)(v) would
define the term “qualified EAC registry
or accounting system” to mean a tracking
system that (i) assigns a unique identifica-
tion number to each EAC tracked by such
system, (ii) enables verification that only
one EAC is associated with each unit of
electricity, (iii) verifies that the underly-
ing attributes of each EAC is claimed and
retired only once, (iv) identifies the owner
of each EAC, and (v) provides a publicly
accessible view (for example, through an
application programming interface) of all
currently registered electricity genera-
tors in the tracking system to prevent the
duplicative registration of such genera-
tors. Qualified EAC registries currently
include, but are not limited to, the follow-
ing: Electric Reliability Council of Texas
(ERCOT); Michigan Renewable Energy
Certification System (MIRECS); Mid-
west Renewable Energy Tracking System,
Inc. (M-RETS); North American Registry
(NAR); New England Power Pool Gen-
eration Information System (NEPOOL-
GIS); New York Generation Attribute
Tracking System (NYGATS); North Car-
olina Renewable Energy Tracking System
(NC-RETS); PJM Generation Attribute
Tracking System (PJM-GATS); and West-
ern Renewable Energy Generation Infor-
mation System (WREGIS).
Proposed §1.45V-4(d)(2)(vi) would
define the term “region” to mean a United
States region derived from the National
Transmission Needs Study (DOE Needs
Study) that was released by the DOE on
October 30, 2023.
11
The DOE has mapped
the DOE Needs Study regions to actual bal-
ancing authorities. The data file and map of
the resulting United States regions can be
found in Guidelines to Determine Well-to-
Gate Greenhouse Gas (GHG) Emissions
of Hydrogen Production Pathways Using
45VH2-GREET (GREET User Manual)
as of December 26, 2023. The location of
an electricity generation source and the
location of a hydrogen production facility
will be based on the balancing authority to
which it is electrically interconnected (not
10
EPA, “Double Counting,” last updated Feb. 5, 2023, available at https://www.epa.gov/green-power-markets/double-counting.
11
DOE, National Transmission Needs Study, Oct. 2023, available at https://www.energy.gov/sites/default/files/2023-10/National_Transmission_Needs_Study_2023.pdf.

April 1, 2024 764 Bulletin No. 2024–14
its geographic location), with each balanc-
ing authority linked to a single region. The
Midcontinent Independent System Opera-
tor, Inc. (MISO) balancing authority is an
exception because it is split into two U.S.
regions as shown in the map located in the
GREET User Manual as of December 26,
2023. Alaska, Hawaii, and each U.S. ter-
ritory will be treated as separate regions.
2. Qualifying Energy Attribute Certificate
Requirements
Proposed §1.45V-4(d)(3) would pro-
vide that an EAC meets the requirements
to be a qualifying EAC if it meets the
requirements for incrementality, temporal
matching, and deliverability. The incre-
mentality requirement in proposed §1.45V-
4(d)(3)(i) would require qualifying EACs
to represent incremental source electricity,
such as electricity from an electricity gen-
erating facility that has a recent COD. As
discussed in more detail later in this sec-
tion, the Treasury Department and the IRS
are requesting comments on whether and
under what circumstances electricity gen-
erated by an existing electricity generating
facility (that is, with a less recent COD)
that is dedicated to hydrogen production
may be treated as satisfying the incremen-
tality requirement. The temporal matching
requirement in proposed §1.45V-4(d)(3)
(ii) would require that qualifying EACs
represent electricity produced in the same
time period in which the hydrogen pro-
duction facility consumes electricity in the
production of hydrogen. The deliverabil-
ity requirement in proposed §1.45V-4(d)
(3)(iii) would require qualifying EACs to
represent electricity that was produced by
an electricity generating facility that is in
the same region as the relevant hydrogen
production facility.
The Treasury Department and the IRS,
in consultation with the EPA and the DOE,
have preliminarily determined that these
qualifying EAC requirements are con-
sistent with the requirements of section
45V(c)(1)(A) and (B) of the Code.
12
The
EPA has advised that, based on its prior
implementation of section 211(o)(1)(H)
of the Clean Air Act in other contexts, it
would be reasonable and consistent with
the EPA’s precedent for the Treasury
Department and the IRS to determine that
induced grid emissions are an anticipated
real-world result of electrolytic hydro-
gen production that must be considered
in lifecycle GHG analyses for purposes
of the section 45V credit. Such interpre-
tation would be consistent with the EPA’s
long-standing interpretation and applica-
tion of section 211(o)(1)(H) of the Clean
Air Act in the context of the Renewable
Fuel Standard (RFS) program. The EPA
has also noted that EACs are an estab-
lished means for documentation and ver-
ification of the electricity generation and
purchase of zero-GHG electricity. More-
over, the EPA has advised that it believes
it would be reasonable for the Treasury
Department and the IRS to use EACs that
possess specific attributes that meet cer-
tain criteria as a means of reducing the risk
of induced grid emissions resulting from
new load from electrolytic hydrogen pro-
duction being added to an existing grid.
Such requirements would mitigate the
risk of inappropriately crediting hydrogen
production that does not meet the lifecycle
GHG levels required by section 45V.
DOE has published a technical paper,
Assessing Lifecycle Greenhouse Gas
Emissions Associated with Electricity Use
for the Section 45V Clean Hydrogen Pro-
duction Tax Credit, which the Treasury
Department and the IRS have reviewed,
and which has informed the development
of the proposed regulations. As discussed
therein, incrementality, temporal match-
ing, and deliverability requirements are
important guardrails to ensure that hydro-
gen producers’ electricity use can be rea-
sonably deemed to reflect the emissions
associated with the specific generators
from which the EACs were purchased
and retired. If hydrogen producers rely on
EACs without attributes that meet these
three criteria there is a significant risk that
hydrogen production would significantly
increase induced grid GHG emissions
beyond the allowable levels required to
qualify for the section 45V credit.
Electricity from a specific generator
will have a GHG emissions profile that
results from both its direct and indirect
emissions. EACs with attributes that meet
the three criteria are intended to address
indirect GHG emissions resulting from
the dynamics of the electricity market and
the electric grid. If a hydrogen producer
purchases zero GHG-emitting electricity
that is represented by such EACs it is rel-
atively straightforward to verify both the
direct and indirect emissions resulting
from such purchase and use. However, for
minimal-emitting sources of electricity,
additional considerations may be neces-
sary to verify the full range of direct and
indirect emissions. The Treasury Depart-
ment and the IRS request comment on
what information is needed to document
and verify GHG emissions related to min-
imal-emitting electricity generation that is
purchased and used for hydrogen produc-
tion for purposes of claiming the section
45V credit.
While the Treasury Department and the
IRS are soliciting comment on the type of
information that hydrogen producers must
provide in order to document and verify
the direct and indirect GHG emissions
associated with purchased electricity gen-
erally, we are also seeking input on two
specific types of electricity generation
for which GHG emissions can be highly
variable or uncertain: fossil fuel-powered
electricity generation with CCS and bio-
mass-powered electricity generation. With
regard to non-minimally emitting electric-
ity generation, and fossil fuel-powered
generation and biomass powered genera-
tion with or without CCS in particular, the
Treasury Department and the IRS request
comment on mechanisms to verify accu-
rately real-world emissions related to
hydrogen production. This includes mech-
anisms for, among other things, verifica-
tion of the origin of the feedstock, rate of
carbon capture, and other parameters that
are relevant to accurate lifecycle analysis,
as well as the ability of EAC instruments
to represent accurately such attributes.
The Treasury Department and the IRS
also request comment on specific lifecycle
GHG emissions considerations, including
the use of counterfactual scenarios, that
should be considered in evaluating direct
12
EPA Letter, available at https://home.treasury.gov/system/files/136/45V-NPRM-EPA-letter.pdf; DOE, “Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for
the Section 45V Clean Hydrogen Production Tax Credit,” Washington, DC (2023), available at www.energy.gov/45vresources.

Bulletin No. 2024–14 765 April 1, 2024
and indirect emissions associated with
specific types of biomass and its consump-
tion. The Treasury Department and the
IRS also request comment on the extent
and manner in which incrementality, tem-
poral matching, and deliverability should
be applied in accounting for existing or
new electricity generation from biomass
or fossil feedstock. These comments may
inform future versions of 45VH2-GREET.
a. Incrementality
Proposed §1.45V-4(d)(3)(i)(A) would
provide that an EAC meets the incremen-
tality requirement if the electricity gen-
erating facility that produced the unit of
electricity to which the EAC relates has
a COD (as defined in proposed §1.45V-
4(d)(2)(i)) that is no more than 36 months
before the hydrogen production facility
for which the EAC is retired was placed
in service.
The Treasury Department and the IRS
understand that EAC tracking systems
capture the COD of each electricity gen-
erating facility during the registration
process (often using data also reported to
the Energy Information Administration),
inclusive of month and year, which can
be cross-referenced based on project iden-
tification codes included on those EACs.
That COD should represent the initial date
of operation for the relevant electricity
generating facility. Third-party verifiers
should use this data to confirm the eligi-
bility of purchased and retired EACs.
The Treasury Department and the IRS
note that there are circumstances in which
an existing higher-emitting electricity
generating facility may make upgrades
to subsequently deliver minimal-emitting
electricity. For example, an existing fos-
sil-fuel electricity generating facility may
add CCS capability, thereby reducing its
lifecycle GHG emissions rate as deter-
mined in 45VH2-GREET. The Treasury
Department and the IRS request com-
ments on whether the electricity generated
by such a facility should be considered
incremental under circumstances such as
if an existing fossil fuel electricity-gen-
erating facility after the addition of CCS
(after upgrade), had a COD that is no more
than 36 months before the relevant hydro-
gen production facility was placed in ser-
vice. Comment is also requested on the
related question of whether, depending on
its carbon dioxide capture rate, it would be
appropriate to treat such a facility as a new
source of minimal-emitting generation
on the grid that would not be associated
with induced grid emissions. Relevant
to these questions, the Treasury Depart-
ment and the IRS additionally request
comment on what information would
be needed to allow for qualifying EACs
representing existing fossil fuel-powered
electricity from facilities that have added
CCS. In particular, comment is requested
on whether there are safeguards that can
ensure that a hydrogen producer’s pur-
chase and use of electricity from an exist-
ing fossil fuel-fired electricity generating
facility that installs CCS does not result
in indirect GHG emissions due to the
dynamics of the electricity market and
electric grid. The Treasury Department
and the IRS request comment on the direct
and induced emissions impacts of making
such a facility eligible, and whether and
under what circumstances it would be
appropriate to do so.
Proposed §1.45V-4(d)(3)(i)(B) would
provide an alternative test for establishing
incrementality for electricity generating
facilities that undergo an uprate. Proposed
§1.45V-4(d)(3)(i)(B) would provide that
an EAC satisfies this alternative test if the
electricity represented by the EAC is pro-
duced by an electricity generating facility
that had an uprate no more than 36 months
before the hydrogen production facility
with respect to which the EAC is retired
was placed in service and such electricity
is part of such electricity generating facil-
ity’s uprated production.
Proposed §1.45V-4(d)(3)(i)(B) would
provide rules for determining upra-
ted production. Specifically, proposed
§1.45V-4(d)(3)(i)(B) would provide that
an uprated electricity generating facili-
ty’s production must be prorated to each
hour or year, consistent with the require-
ments in proposed §1.45V-4(d)(3)(ii), of
such facility’s generation by multiplying
each hour’s production by the uprated
production rate to determine the elec-
tricity to which the uprate relates. Pro-
posed §1.45V-4(d)(3)(i)(B) would define
key terms, including: (i) “uprate,” which
means an increase in an electricity gener-
ating facility’s rated nameplate capacity
(in nameplate megawatts); (ii) “pre-up-
rate capacity,” which means the name-
plate capacity of an electricity generating
facility immediately before an uprate; (iii)
“post-uprate capacity,” which means the
nameplate capacity of an electricity gener-
ating facility immediately after an uprate;
(iv) “incremental generation capacity,”
which means the increase in an electric-
ity generating facility’s rated nameplate
capacity from the pre-uprate capacity to
the post-uprate capacity; (v) “uprated
production rate,” which means the incre-
mental generation capacity (in nameplate
megawatts) divided by the post-uprate
capacity (in nameplate megawatts); and
(vi) “uprated production,” which means
the uprated production rate of an electric-
ity generating facility multiplied by its
total generation output in a given hour (in
megawatt hours). Proposed §1.45V-4(d)
(3)(i)(C) would provide an example to
illustrate the application of the alternative
test for establishing incrementality due to
uprates.
The DOE has advised that there are
circumstances during which diversion of
existing minimal (that is, zero or near-
zero) emissions power generation to
hydrogen production is unlikely to result
in significant induced GHG emissions.
13

Such circumstances may include genera-
tion from minimal-emitting power plants
(i) that would retire absent the ability to
sell electricity for qualified clean hydro-
gen production, (ii) during periods in
which minimal-emitting generation would
have otherwise been curtailed, if marginal
emissions rates are minimal, or (iii) in
locations where grid-electricity is 100
percent generated by minimal-emitting
generators or where increases in load do
not increase grid emissions, for example,
due to State policy capping total GHG
emissions such that new load must be met
with minimal-emitting generators. The
13
DOE, “Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the Section 45V Clean Hydrogen Production Tax Credit,” Washington, DC (2023), available at
www.energy.gov/45vresources.

April 1, 2024 766 Bulletin No. 2024–14
Treasury Department and the IRS seek
comments on whether and how to pro-
vide alternative approaches to identifying
circumstances in which there is minimal
risk of significant induced grid emissions
for certain existing electricity generating
facilities.
The Treasury Department and the IRS
are considering providing, in the final reg-
ulations, alternative circumstances under
which an EAC may be deemed to sat-
isfy the incrementality requirement. The
Treasury Department and the IRS request
comments on these specific circumstances
as described in part V.C.2.a.i through iii of
this Explanation of Provisions.
i. Avoided Retirements Approach
The Treasury Department and the IRS
seek comments on whether to recognize
an avoided retirements approach that
would treat EACs from an existing elec-
tricity generating facility as satisfying the
incrementality requirement if the facility
is likely to avoid retirement because of
its relationship with a hydrogen produc-
tion facility. With respect to this potential
approach, the Treasury Department and
the IRS request comments on the follow-
ing: (i) the appropriate criteria that should
be considered to assess retirement risk;
(ii) the extent to which demonstration of
financial loss, projected or actual local
electricity market conditions, presence
of out-of-market financial support (which
could potentially include financial support
driven by Federal or State policy, bilat-
eral contracts for EACs or above-market
electricity sales, or revenue provided by
cost-of-service regulation), or upcoming
relicensing decisions, in combination,
are appropriate criteria to assess risk;
(iii) industry best practices for estimating
financial loss and the documentation nec-
essary to support those estimates; (iv) the
appropriate criteria that should be taken
into account to assess the likelihood that
an electricity generator’s relationship with
a hydrogen production facility avoids
retirement of the generator (for example,
size of electrolyzer, co-location, contract
length, or otherwise); (v) the appropriate
criteria that should be taken into account
to ensure that only electricity generation
supplying the minimum hydrogen pro-
duction necessary to avoid retirement is
counted as incremental, and, in particu-
lar, whether there should be a cap on the
amount of generation from a given facility
that qualifies as incremental and how such
a cap should be determined; (vi) the period
during which any determination of incre-
mentality of existing electricity generators
would be maintained before a new show-
ing would be required; (vii) the process by
which eligibility for this approach should
be determined and any related administra-
bility considerations; and (viii) what role,
if any, EAC tracking systems should play
in the verification or tracking of eligible
EACs from such electricity generators.
With respect to processes that may
be used to implement this approach, the
Treasury Department and the IRS request
comments on whether such approach
should allow existing minimal-emitting
generators that wish to provide EACs to
hydrogen producers to demonstrate incre-
mentality through submission to the IRS
or another Federal agency, such as the
DOE, specific information that supports a
conclusion that the electricity generator is
at risk of retirement that may be mitigated
by sales to hydrogen producers, and, if so,
what information and information submis-
sion process should be required.
The available data on retirement risk
indicates this approach may be warranted.
Some clean power plants, primarily
nuclear plants, have retired in recent years.
Based on data from the Energy Informa-
tion Administration (EIA), from 2013
through 2022, 10,800 megawatts (MW) of
nuclear, 1,700 MW of wind, 950 MW of
hydropower, and 360 MW of solar have
retired.
14
Studies have shown that there is
risk of continued retirement in the years
ahead.
15
The EIA, for example, estimates
that an additional 4,600 MW of existing
nuclear plants may retire through 2032,
equivalent to five percent of the exist-
ing nuclear fleet (1,900 gigawatts (GW)
of renewable power plants may retire as
well).
16
Some of these plant owners (pri-
marily owners of nuclear plants) may
decide whether to retire the plants based
on the finances of continuing to operate
the plants. It is likely that for some plants,
additional revenue from selling EACs and
electricity to hydrogen producers may
improve the financial outlook of the plant
and help avert retirement, thereby keep-
ing the minimal-emitting power plant in
operation and not resulting in induced
grid emissions compared to a scenario in
which the plant retires.
ii. Zero or Minimal Induced Grid
Emissions Through Modeling or Other
Evidence
The Treasury Department and the IRS
seek comments on whether to provide
an opportunity to demonstrate zero or
minimal induced grid emissions through
modeling or other evidence under specific
circumstances. A demonstrated or mod-
eled minimal-emission approach could
treat electricity produced by certain exist-
ing electricity generating facilities under
certain circumstances as satisfying the
incrementality requirement if it is demon-
strated that such sources and circum-
stances would not give rise to significant
induced grid emissions. Such a showing
could be based on modeling or potentially
be deemed to be made in certain circum-
stances based on regional grid characteris-
tics, State policy, or facility history.
The Treasury Department and the IRS
request comments on this demonstrated
or modeled minimal-emission approach,
including: (i) the circumstances in which
it should be available and the criteria that
are appropriate to evaluate and determine
whether those circumstances occur; (ii)
who should apply under this approach, the
electricity generation facility, the hydro-
gen producer, or both; (iii) what data or
modeling should be submitted; (iv) best
practices for making such demonstrations,
including for ensuring the impartiality and
replicability of calculation approaches; (v)
how an administrator of such a program
would validate the accuracy of applicant
14
Monthly Generator Report Based on Form 860 available at https://www.eia.gov/electricity/data/eia860m/.
15
See John Bistline et al, “Emissions and energy impacts of the Inflation Reduction Act”, 380Science, 1324-27, June 29, 2023, available at https://www.science.org/doi/10.1126/science.
adg3781; U.S. Energy Information Administration, Annual Energy Outlook 2023, March 16, 2023, available at https://www.eia.gov/outlooks/aeo/tables_ref.php.
16
U.S. Energy Information Administration, Annual Energy Outlook 2023, March 16, 2023, available at https://www.eia.gov/outlooks/aeo/tables_ref.php.

Bulletin No. 2024–14 767 April 1, 2024
submissions; (vi) under what circum-
stances, if any, it would be appropriate
to deem generation to satisfy the incre-
mentality requirement without modeling,
and what documentation should be pro-
vided in these cases; (vii) the process by
which eligibility for this approach should
be determined and any related adminis-
trability considerations; (viii) the period
during which any determination of incre-
mentality would be maintained before a
new showing would be required; and (ix)
the circumstances and capability of EACs
and tracking systems to track and verify
energy attributes from such sources.
There are several circumstances that
may be covered under this pathway. Peri-
ods of curtailment or zero or negative
pricing is one such circumstance. Hydro-
power plants sometimes “spill” water, a
form of curtailment. Curtailment of min-
imal-emitting electricity generation tends
to occur during times when wholesale
electricity prices are zero or negative on
a system-wide basis. Purchasing EACs
from existing minimal-emitting electricity
generators under these conditions would
have limited or no induced grid emissions
as these are times during which increased
load would tend to be met by the otherwise
curtailed minimal-emitting electricity
generators rather than inducing increased
generation from emitting electricity gen-
erators, and so is unlikely to significantly
increase induced grid emissions.
Similarly, if in a particular region, all
generation—including imported genera-
tion—comes from minimal-emitting elec-
tricity generators, then increased load is
unlikely to significantly increase induced
grid emissions. The same may be true if
a region is subject to a State or local pol-
icy that ensures that new load is met with
minimal-emitting electricity generation.
There may be limited risk of significant
induced GHG emissions for islanded gen-
eration systems. Diversion of generation
from a minimal-emitting electricity gen-
erator that has never been connected to
the grid generally may not have the same
induced GHG emissions effects as diver-
sion from an electricity generator that is
connected to the grid. Induced GHG emis-
sions could occur, however, if the energy
demand that the existing minimal-emit-
ting electricity generator previously met
is instead met by a different, emitting,
energy source. For example, an onsite
minimal-emitting electricity generator
that powers an industrial facility could
be diverted for hydrogen production, in
which case the induced GHG emissions
would depend on what happens at the
site to meet the power needs of the indus-
trial facility (unless the industrial facility
ceases operation).
iii. Formulaic approaches to addressing
incrementality from existing clean
generators
The Treasury Department and the
IRS recognize the difficulty in reliably
identifying the specific electricity gen-
erators and specific times and places in
which the circumstances described in
part V.C.2.a.i and ii of this Explanation
of Provisions might occur. Therefore,
the Treasury Department and the IRS are
also considering alternative approaches
that would serve as proxy for all the path-
ways described in part V.C.2.a.i and part
V.C.2.a.ii of this Explanation of Provi-
sions. EACs that satisfy the incremen-
tality requirement through this pathway
would still be required to meet temporal
matching and deliverability requirements.
One such approach would deem five
percent of the hourly generation from
minimal-emitting electricity generators
(for example, wind, solar, nuclear, and
hydropower facilities) placed in service
before January 1, 2023, as satisfying the
incrementality requirement. This path-
way may be appropriate because some
circumstances (including periods of cur-
tailment or times when generation from
minimal-emitting electricity generation
is on the margin) may make the resulting
incremental generation difficult to antic-
ipate or identify, or because the process
for identifying the circumstances (such
as avoided retirement risk or modeling of
minimal-emissions) may be overly bur-
densome to evaluate for specific electric-
ity generators or require data that is not
available. In some instances, for example,
in determining whether EACs come from
electricity generation that would other-
wise have been curtailed, these circum-
stances require understanding of coun-
terfactual “what if” scenarios that depend
on numerous assumptions. In other cir-
cumstances, for example, in determining
whether EACs come from minimal-emit-
ting electricity generators that otherwise
would have retired or if policy regimes
restrict increases in grid emissions in the
face of growing electricity demand, they
may require detailed assessment and
pre-qualification based on applicant-sub-
mitted information and forecasts with
related concerns about information accu-
racy. In still other cases, they may require
complex geographically and temporally
granular modeling and data (such as for
marginal emission rates that consider
operational and structural effects
17
) in
concert with hourly EAC tracking infra-
structure that is not yet widely available.
The Treasury Department and the IRS
are mindful of the risk that an allowance
without further temporal, spatial, and cir-
cumstantial precision results in hydrogen
production facilities receiving credits for
which they should not be eligible given
their induced emissions rates. Given the
risks of induced GHG emissions, the Trea-
sury Department and the IRS believe that
a broadly available allowance that is not
tailored to specific geographic or other
conditions should not be greater than the
national average rate of the occurrence
of the above circumstances and instead
should be a conservative lower bound of
the national average. The DOE reports
that wind curtailment in 2022 averaged 5.3
percent of total wind generation nation-
wide (data are only available for Indepen-
dent System Operator (ISO) regions),
18

and Lawrence Berkeley National Labo-
ratory reports curtailment rates for solar
photovoltaics at over 10 percent of solar
generation in ERCOT and over 3 percent
in California Independent System Opera-
tor (CAISO).
17
DOE, “Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the Section 45V Clean Hydrogen Production Tax Credit,” Washington, DC (2023), available at
www.energy.gov/45vresources.
18
Office of Energy Efficiency & Renewable Energy, DOE, “Land-Based Wind Market Report: 2023 Edition,” Aug. 24, 2023, available at https://www.energy.gov/eere/wind/articles/land-
based-wind-market-report-2023-edition.

April 1, 2024 768 Bulletin No. 2024–14
Purchasing EACs from existing min-
imal-emission electricity generators,
whether or not from the electricity gen-
erators that would otherwise curtail their
output, under these conditions would have
limited risk of induced grid emissions. As
noted earlier, curtailment is most likely
to occur in the face of negative whole-
sale electricity prices if the marginal grid
emissions rate is minimal or zero. Based
on a data tool developed by Lawrence
Berkeley National Laboratory that consid-
ers over 50,000 wholesale pricing nodes
across the nation, negative wholesale
prices occurred during roughly five per-
cent of hours over the last several years
(6.3 percent of hours in 2022, 5.8 percent
in 2021, 4.8 percent in 2020, 3.3 percent
in 2019, and 2.3 percent in 2018).
19
These
are times during which increased load is
unlikely to increase significantly induced
grid emissions.
20
Modeled data from the
National Renewable Energy Laboratory
(NREL) is broadly consistent with these
trends. Specifically, NREL’s Cambium
data set for 2024 shows that long-run mar-
ginal emissions rates on a national basis
are projected to be at or near zero for about
five percent of hours, times during which
minimal-emitting electricity generators
are on the margin and often curtailed.
21

In addition, some minimal-emitting
electricity generators are at risk of retire-
ment, including about five percent of the
nuclear fleet according to EIA estimates.
A percentage allowance can also serve as
proxy for avoided retirements.
The Treasury Department and the IRS
seek comments on this five percent-allow-
ance approach, including the merits of this
approach compared to the targeted path-
ways described, particularly with respect
to balancing administrative feasibility and
burden with accuracy of identifying cir-
cumstances with a low risk of induced grid
emissions. The Treasury Department and
the IRS also seek comments on whether
five percent is the appropriate magni-
tude for an allowance. In particular, as
noted earlier, data show that curtailment
rates have increased in recent years, and
NREL’s Cambium model predicts addi-
tional increases going forward. In light of
these data and projections, the Treasury
Department and the IRS seek comments
on whether a higher amount, such as up
to 10 percent, would be appropriate, either
in general or in certain cases or circum-
stances. The Treasury Department and
the IRS also seek comments on: (i) how a
five-percent allowance should be tracked,
allocated, and administered and how fea-
sible it is for EAC tracking systems to
incorporate data on such an allowance;
(ii) whether the five percent should apply
to all existing minimal-emitting electric-
ity generators in all locations or a subset
and for what reasons; (iii) whether such
an allowance should be assessed at the
individual plant level or across an oper-
ator’s fleet within the same deliverability
region; and (iv) any other administrability
considerations. The Treasury Department
and the IRS seek comments specifically
on whether and how the “averaging”
approach of a proxy appropriately cap-
tures the circumstances in which gener-
ation is incremental or does not generate
induced grid emissions. The Treasury
Department and the IRS also seek com-
ments on how and whether the targeted
alternative approaches or the other proxy
approaches described subsequently in
this part V.C.2.a.iii of this Explanation of
Provisions might replace the five-percent
allowance or might be coordinated with
the allowance.
The Treasury Department and the IRS
invite comments on alternative formulaic,
proxy approaches that might better cap-
ture conditions under which using existing
minimal-emitting electricity generation to
produce hydrogen does not significantly
impact induced grid emissions. The Trea-
sury Department and the IRS request
comments on whether there would be an
appropriate, more formulaic approach to
capturing retirement risk, instead of the
application-based process or the five-per-
cent allowance. Comments are specifically
requested on whether such an alternative
approach should be limited to facilities
with specific technical, market, or geo-
graphic characteristics corresponding with
a greater risk of retirement (for example,
participation in a wholesale market, lack of
State support for a facility, nuclear plants
with a single reactor) and higher likelihood
that using a subset of electricity generation
and related EACs for hydrogen production
would minimize the risk.
In particular, the Treasury Department
and the IRS seek comments on whether
existing nuclear and hydroelectric facil-
ities that need to undertake a relicensing
process are generally at higher risk of
retirement without additional financial
assistance and, if so, what considerations
should be integrated into a potential for-
mulaic approach. Comments are further
requested on whether there are particular
characteristics of hydrogen production
facilities associated with existing gen-
erators at risk of retirement that should
be considered (i) to demonstrate that the
hydrogen production reduces retirement
risk, such as co-location of hydrogen
production with an existing generator
and (ii) to assess the minimum hydrogen
production necessary to reduce retirement
risk, such as limitations on project size,
electrolyzer capacity, or percent of gen-
eration used by the hydrogen production.
Comments are further requested on how
to determine the portion of such electric-
ity generation and related EACs, which is
generally likely to be sufficient to mini-
mize that risk. Similarly, with respect to
the modeled or demonstrated approach
described in part V.C.2.a.ii of this Expla-
nation of Provisions, the Treasury Depart-
ment and the IRS request comments on
whether there are formulaic approaches
that might be used instead of an applica-
tion-based pre-qualification process and
the broad five-percent allowance.
For each of these possible alternative
approaches to establish incrementality,
the Treasury Department and the IRS
request comments on how eligibility for
the approach may be reliably verified by
an unrelated party and administered by the
IRS.
19
Berkeley Lab, Electricity Markets & Policy, The Renewables and Wholesale Electricity Prices (ReWEP) Tool, available at https://emp.lbl.gov/renewables-and-wholesale-electricity-pric-
es-rewep.
20
For example, see New York State Energy Research and Development Authority (NYSERDA), “Projected Emission Factors for New York State Grid Electricity,” NYSERDA Report Number
22-18 (2022), available at https://www.nyserda.ny.gov/-/media/Project/Nyserda/Files/Publications/Energy-Analysis/22-18-Projected-Emission-Factors-for-New-York-Grid-Electricity.pdf.
21
See National Renewable Energy Laboratory, Energy Analysis, Cambium, available at https://www.nrel.gov/analysis/cambium.html. Long-run marginal emissions rates at or near zero are
defined as under 25 kg CO2e/MWh.

Bulletin No. 2024–14 769 April 1, 2024
b. Temporal Matching
Proposed §1.45V-4(d)(3)(ii)(A) would
provide the general rule that an EAC sat-
isfies the temporal matching requirement
if the electricity represented by the EAC
is generated in the same hour that the tax-
payer’s hydrogen production facility uses
electricity to produce hydrogen. Proposed
§1.45V-4(d)(3)(ii)(B) would provide a
transition rule to allow an EAC that rep-
resents electricity generated before Janu-
ary 1, 2028 to fall within the general rule
provided in proposed §1.45V-4(d)(3)(ii)
(A) if the electricity represented by the
EAC is generated in the same calendar
year that the taxpayer’s hydrogen pro-
duction facility uses electricity to pro-
duce hydrogen. The DOE has advised that
hourly matching is necessary to properly
address significant indirect emissions
from electricity use and that the tracking
systems and related contractual struc-
tures for hourly matching will take some
time to develop to an appropriate level of
maturity.
22
This transition rule is intended
to provide time for the EAC market to
develop the hourly tracking capability
necessary to verify compliance with this
requirement.
Hourly tracking systems for EACs are
not yet broadly available across the coun-
try and will take some time to develop.
23

In a recent survey of nine existing track-
ing systems,
24
two of the tracking systems
indicated that they are already tracking on
an hourly basis, although software func-
tionality in these two systems remains
limited. Fully developing the functional-
ity of these systems will take time, as will
creating and developing the functionality
of hourly tracking infrastructure in other
regions of the country. Of the other track-
ing systems, assuming that challenges are
overcome, four gave a timeline of less
than one year to two years, and one gave a
timeline of three to five years; in the latter
case, the respondent noted that the time-
line could be closer to three years if there
is full State agency buy-in, clear instruc-
tions are received from Federal or State
agencies, and funding for stakeholder
participation is made available. Two
tracking systems declined to give a time-
line to develop this functionality. In the
same survey, tracking systems identified
a number of challenges to hourly tracking
that will need to be overcome, including
cost, regulatory approval, interactions
with State policy, sufficient stakeholder
engagement, data availability and man-
agement, and user confusion. Moreover,
once the tracking software infrastructure
is in place nationally, it may take addi-
tional time for transactional structures and
efficient hourly EAC markets to develop.
Among the issues that require resolution
as EAC tracking systems move to hourly
resolution is the treatment of electricity
storage.
25

Given the state of tracking systems,
the expected responses to this proposed
rule, and the impact of demand to drive
development of the tracking systems, the
Treasury Department and the IRS antic-
ipate that the proposed duration of the
transition rule would allow sufficient time
for systems to develop hourly tracking
mechanisms and for the associated trad-
ing markets to develop. The Treasury
Department and the IRS acknowledge
uncertainty in the timing of implementing
an hourly matching requirement, how-
ever, and request comments on the appro-
priate duration of this transition rule to
hourly matching, including specific data
regarding current industry practices, the
predicted timelines for development of
hourly tracking mechanisms, and the pre-
dicted timeline for market development
for hourly EACs.
c. Deliverability
Proposed §1.45V-4(d)(3)(iii) would
provide that an EAC meets the deliv-
erability requirements if the electricity
represented by the EAC is generated by
a source that is in the same region (as
defined in proposed §1.45V-4(d)(2)(vi))
as the relevant hydrogen production facil-
ity. This approach provides reasonable
assurances of deliverability of electricity
because the regions, as defined earlier,
were developed by the DOE in consid
-
eration of transmission constraints and
congestion and, in many cases, match
power-systems operation. The Treasury
Department and the IRS recognize that
transmission limitations also exist within
these specified regions but are not aware
of readily administrable options to reflect
those grid constraints. The DOE has gen-
erally found that inter-regional transmis-
sion constraints tend to be greater than
within-region constraints.
26
The Treasury
Department and the IRS request com-
ments on whether there are additional
ways to establish deliverability, such as
circumstances indicating that electricity
is actually deliverable from an electric-
ity generating facility to a hydrogen pro-
duction facility, even if the two are not
located in the same region or if the clean
electricity generator is located outside of
the United States.
VI. Procedures for Verification of
Qualified Clean Hydrogen Production
and Sale or Use.
Section 45V(c)(2)(B)(ii) provides that
hydrogen is not qualified clean hydrogen
unless “the production and sale or use of
such hydrogen is verified by an unrelated
party.”
A. Requirements for verification reports
Proposed §1.45V-5(a) would provide
that a verification report must be attached
to the taxpayer’s Form 7210, Clean
Hydrogen Production Credit, or any suc-
cessor form(s), and included with the
22
DOE, “Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the Section 45V Clean Hydrogen Production Tax Credit,” Washington, DC (2023), available at
www.energy.gov/45vresources.
23
Electric Power Research Institute, “24/7 Carbon-free Energy: Matching Carbon-free Energy Procurement to Hourly Electric Load,” Dec. 15, 2022, available at https://www.epri.com/
research/products/000000003002025290.
24
Center for Research Solutions, “Readiness for Hourly: U.S. Renewable Energy Tracking Systems,” June 15, 2023, available at https://resource-solutions.org/wp-content/uploads/2023/06/
Readiness-for-Hourly-U.S.-Renewable-Energy-Tracking-Systems.pdf.
25
DOE, “Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the Section 45V Clean Hydrogen Production Tax Credit,” Washington, DC (2023), available at
www.energy.gov/45vresources.
26
DOE, National Transmission Needs Study, Oct. 2023, available at https://www.energy.gov/sites/default/files/2023-10/National_Transmission_Needs_Study_2023.pdf.

April 1, 2024 770 Bulletin No. 2024–14
taxpayer’s Federal income tax return or
information return for each qualified clean
hydrogen production facility and for each
taxable year in which the taxpayer claims
the section 45V credit. Proposed §1.45V-
5(b) would provide that the verification
report specified in §1.45V-5(a) must be
prepared by a qualified verifier (as defined
in §1.45V-5(h)) under penalties of per-
jury. Proposed §1.45V-5(b)(1) through (6)
would describe the following information
that a verification report must contain:
(i) an attestation from the qualified veri-
fier regarding the taxpayer’s production
of qualified clean hydrogen for sale or
use during the taxable year (production
attestation), (ii) an attestation from the
qualified verifier regarding the amount of
such qualified clean hydrogen sold or used
(sale or use attestation), (iii) an attestation
from the qualified verifier regarding con-
flicts of interest (conflict attestation), (iv)
certain information regarding the qual-
ified verifier, including documentation
of the qualified verifier’s qualifications
(qualified verifier statement), (v) certain
general information about the taxpayer’s
hydrogen production facility where the
hydrogen production undergoing verifica-
tion occurred, and (vi) any documentation
necessary to substantiate the verification
process given the standards and best prac-
tices prescribed by the qualified verifier’s
accrediting body and the circumstances of
the taxpayer and the taxpayer’s hydrogen
production facility.
B. Requirements for production
attestation
Proposed §1.45V-5(c)(1) would pro-
vide that a production attestation must
state, under penalties of perjury, that the
qualified verifier performed a verification
sufficient to determine that the opera-
tion, during the applicable taxable year,
of the hydrogen production facility that
produced the hydrogen for which the sec-
tion 45V credit is claimed, and any EACs
applied pursuant to proposed §1.45V-4(d),
are accurately reflected in: (i) the amount
of qualified clean hydrogen produced by
the taxpayer that is claimed on the Form
7210, Clean Hydrogen Production Credit,
or any successor form(s), to which the
verification report is attached; and (ii)
either the data the taxpayer entered into
the most recent GREET model (as defined
in proposed §1.45V-1(a)(8)(ii)) to deter-
mine the lifecycle GHG emissions rate
that is claimed on the Form 7210, Clean
Hydrogen Production Credit, or any suc-
cessor form(s), or the data the taxpayer
submitted in the PER petition relating to
the hydrogen for which the section 45V
credit is claimed, and which was pro-
vided to the DOE in support of the tax-
payer’s request for the emissions value
provided in the PER petition. For any
acquisition and retirement of qualifying
EACs, the verification must include vali-
dation that any purchases of EACs from
specified sources as entered into the most
recent GREET model or used as part of
a PER application meet all requirements
for being qualifying EACs, and that any
required technical parameters of the gen-
erating source (for example, CCS capture
rate, or sources of biomass) as entered into
45VH2-GREET or as part of a PER appli-
cation are accurate.
Proposed §1.45V-5(c)(2) would pro-
vide that, if the production attestation
attests to the information specified in
proposed §1.45V-5(c)(1)(ii)(B), then the
production attestation must also specify
the emissions value received from the
DOE that was calculated using such data,
expressed in kilograms of CO2e per kilo-
gram of hydrogen.
Proposed §1.45V-5(c)(3) would pro-
vide that the production attestation must
specify the lifecycle GHG emissions rate
(expressed in kilograms of CO2e per kilo-
gram of hydrogen) and the amount of
qualified clean hydrogen produced by the
taxpayer (expressed in kilograms), that are
claimed on the Form 7210, Clean Hydro-
gen Production Credit, or any successor
form(s), to which the verification report is
attached.
C. Requirements for sale or use
attestation
Proposed §1.45V-5(d)(1) would pro-
vide that the sale or use attestation must be
an attestation, made under penalties of per
-
jury, that the qualified verifier performed a
verification sufficient to determine that the
amount of qualified clean hydrogen that
is specified in the production attestation
(described in proposed §1.45V-5(c)), and
that is claimed on the Form 7210, Clean
Hydrogen Production Credit, or any suc-
cessor form(s), to which the verification
report is attached, has been sold or used.
Proposed §1.45V-5(d)(2) would pro-
vide that, for purposes of section 45V(c)
(2)(B)(ii) and §1.45V-1(a)(9)(ii), the
hydrogen specified in proposed §1.45V-
5(d)(1) has been used if a person makes
a verifiable use of such hydrogen. Section
45V does not deny a section 45V credit if
the hydrogen is sold or used outside the
United States (as defined in section 638(1)
or a U.S. territory (having the meaning of
the term “possession” as defined in sec-
tion 638(2)). Thus, a verifiable use can
occur within or outside the United States.
A verifiable use can be made by the tax-
payer or a person other than the taxpayer.
For example, in a tolling arrangement pur-
suant to which a service recipient provides
raw materials or inputs such as water or
electricity to a third-party service provider
that owns a hydrogen production facility
(the toller), and the toller produces hydro-
gen for the service recipient using the ser-
vice recipient’s raw materials or inputs in
exchange for a fee, use of the hydrogen by
the service recipient would be a verifiable
use. However, a verifiable use includes
neither (i) use of hydrogen to generate
electricity that is then directly or indirectly
used in the production of more hydrogen,
nor (ii) venting or flaring hydrogen.
Excluding those activities from qual-
ifying as a verifiable use is intended to
prevent the wasteful production of hydro-
gen and abusive section 45V credit gen-
eration schemes. For example, without
this restriction, the section 45V credit
could be exploited through the produc-
tion of qualified clean hydrogen that is
used to generate electricity that is, in turn,
used to produce additional qualified clean
hydrogen. The primary purpose of these
arrangements would be the exploitation of
the section 45V credit and possibly other
Federal income tax credits. Such arrange-
ments are inconsistent with the intent of
section 45V and with the statutory “use”
requirement because they would incentiv-
ize the inefficient production of qualified
clean hydrogen for unproductive use and
would result in excessive claims of the
section 45V credit. The Treasury Depart-
ment and the IRS request comments on
whether there are additional safeguards
that the regulations could adopt to pre-

Bulletin No. 2024–14 771 April 1, 2024
vent this or similar types of abusive sec-
tion 45V credit claims, including section
45V credit claims arising if such circular
arrangements are coordinated among mul-
tiple parties.
D. Requirements for conflict attestation
Proposed §1.45V-5(e)(1) would pro-
vide that the verification report must also
include a conflict attestation, made under
penalties of perjury, that (i) the qualified
verifier has not received a fee based to any
extent on the value of any section 45V
credit that has been or is expected to be
claimed by any taxpayer and no arrange-
ment has been made for such fee to be
paid at some time in the future; (ii) the
qualified verifier was not a party to any
transaction in which the taxpayer sold
qualified clean hydrogen it had produced
or in which the taxpayer purchased inputs
for the production of such hydrogen; (iii)
the qualified verifier is not related, within
the meaning of section 267(b) or 707(b)
(1), to, or an employee of, the taxpayer;
(iv) the qualified verifier is not married
to an individual described in proposed
§1.45V-5(e)(1)(iii); and (v) if the qualified
verifier is acting in his or her capacity as
a partner in a partnership, an employee of
any person, whether an individual, corpo-
ration, or partnership, or an independent
contractor engaged by a person other than
the taxpayer, the attestations under pro-
posed §1.45V-5(e)(1)(i) through (iv) must
be made with respect to the partnership or
the person who employs or engages the
qualified verifier.
Proposed §1.45V-5(e)(2) would pro-
vide that, if a transfer election has been
made under section 6418(a) of the Code
with respect to the section 45V credit,
then the attestation requirements under
proposed §1.45V-5(e)(1) would need to
be made with respect to the qualified veri-
fier’s independence from both the eligible
taxpayer (as defined in section 6418(f)(2)
and §1.6418-1(b)) and the transferee tax-
payer (as described in section 6418(a) and
defined in §1.6418-1(m)).
E. Requirements for qualified verifier
statement
Proposed §1.45V-5(f) would provide
that the qualified verifier statement must
contain (i) the qualified verifier’s name,
address, and taxpayer identification num-
ber; (ii) the qualified verifier’s qualifica-
tions to conduct the verification, includ-
ing the qualified verifier’s education and
experience and a photocopy of the qual-
ified verifier’s certificate received from
their accrediting body; (iii) if the qualified
verifier is acting in his or her capacity as
a partner in a partnership, an employee of
any person, whether an individual, corpo-
ration, or partnership, or an independent
contractor engaged by a person other than
the taxpayer, the name, address, and tax-
payer identification number of the partner-
ship or the person who employs or engages
the qualified verifier; (iv) the signature of
the qualified verifier and the date signed
by the qualified verifier; and (v) a state-
ment that the verification was conducted
for Federal income tax purposes.
F. General information required to be
included in verification report
Proposed §1.45V-5(g) would provide
that the verification report must include (i)
the location of the hydrogen production
facility; (ii) a description of the hydrogen
production facility, including its method
of producing hydrogen; (iii) the type(s) of
feedstock(s) used by the hydrogen produc-
tion facility during the taxable year of pro-
duction; (iv) the amount(s) of feedstock(s)
used by the hydrogen production facility
during the taxable year of production; and
(v) a list of the metering devices used to
record any data used by the qualified ver-
ifier to support the production attestation
along with a statement that the qualified
verifier is reasonably assured that the
device(s) underwent industry-appropriate
quality assurance and quality control, and
that the accuracy and calibration of the
device(s) has been tested in the last year.
G. Definitions related to verifications
Proposed §1.45V-5(h) would define
the term “qualified verifier” to mean any
individual or organization with active
accreditation (i) as a validation and veri-
fication body from the American National
Standards Institute National Accreditation
Board; or (ii) as a verifier, lead verifier,
or verification body under the California
Air Resources Board Low Carbon Fuel
Standard program. The Treasury Depart-
ment and the IRS request comment on this
definition of “qualified verifier,” including
on whether additional accreditations that
demonstrate sufficient expertise for verifi-
cation of lifecycle analysis for the section
45V credit should be included.
Proposed §1.45V-5(i) would define the
term “unrelated party” (as described in
section 45V(c)(2)(B)(ii)) to mean a quali-
fied verifier who meets the conflict attesta-
tion requirements as provided in proposed
§1.45V-5(e).
H. Requirements for taxpayers claiming
both the section 45V credit and the
section 45 credit or the section 45U
credit
Proposed §1.45V-5(j) would provide
requirements that, in the case of a tax-
payer who produces electricity for which
either the section 45 credit or section
45U credit is claimed and the taxpayer
or a related person (as defined in section
45(e)(4)) uses such electricity (and related
EACs) to produce hydrogen for which the
section 45V credit is claimed, the verifica-
tion report must also contain attestations
that the qualified verifier performed a ver-
ification sufficient to determine that (i) the
electricity used to produce hydrogen was
produced at the relevant facility for which
either the section 45 credit or section 45U
credit was claimed, (ii) the given amount
of such electricity (in kilowatt hours) used
to produce hydrogen at the relevant qual-
ified clean hydrogen production facility
is reasonably assured of being accurate,
and (iii) the electricity for which a section
45 or section 45U credit was claimed is
represented by EACs that are retired in
connection with the production of such
hydrogen.
I. Required time for filing a verification
report
Proposed §1.45V-5(k) would provide
that a verification report must be signed
and dated by the qualified verifier no later
than (i) the due date, including extensions,
of the Federal income tax return or infor-
mation return for the taxable year during
which the hydrogen undergoing verifi-
cation is produced; or (ii) in the case of
a section 45V credit first claimed on an

April 1, 2024 772 Bulletin No. 2024–14
amended return or administrative adjust-
ment request (AAR), the date on which
the amended return or AAR is filed.
VII. Placed in Service Date for Existing
Facility that is Modified or Retrofitted to
Produce Qualified Clean Hydrogen
A. Modification of an existing facility
Under section 45V(d)(4), in the case of
any facility that was originally placed in
service before January 1, 2023, and, prior
to the modification (described in section
45V(d)(4)(B)), did not produce qualified
clean hydrogen, and after the date the
facility was originally placed in service
(i) is modified to produce qualified clean
hydrogen, and (ii) amounts paid or incurred
with respect to the modification are prop-
erly chargeable to the taxpayer’s capital
account, the facility will be deemed to have
been originally placed in service as of the
date the property required to complete the
modification is placed in service. The rule
in section 45V(d)(4) for modification of
existing facilities applies to modifications
made after December 31, 2022. See section
13204(a)(5)(C) of the IRA.
Proposed §1.45V-6(a)(1) would incor-
porate the statutory provisions of sec-
tion 45V(d)(4). Proposed §1.45V-6(a)
(2) would further provide that an existing
facility will not be deemed to have been
originally placed in service as of the date
the property required to complete the
modification is placed in service unless
the modification is made for the purpose
of enabling the facility to produce quali-
fied clean hydrogen and the taxpayer pays
or incurs an amount with respect to such
modification that is properly chargeable
to the taxpayer’s capital account for the
facility. Proposed §1.45V-6(a)(2) would
also provide that a modification is made
for the purpose of enabling the facility to
produce qualified clean hydrogen if the
facility could not produce hydrogen with
a lifecycle GHG emissions rate that is less
than or equal to 4 kilograms of CO2e per
kilogram of hydrogen but for the modifi-
cation. Changing fuel inputs to the hydro-
gen production process, such as switching
from conventional natural gas to renew-
able natural gas, would not qualify as a
facility modification for purposes of pro-
posed §1.45V-6(a)(2).
Examples 1, 2, and 3 of proposed
§1.45V-6(c) would provide examples
illustrating the application of the rules
provided by section 45V(d)(4) and pro-
posed §1.45V-6(a).
B. Retrofit of an existing facility (80/20
Rule)
Proposed §1.45V-6(b) would provide
that an existing facility may establish a
new date on which it is considered orig-
inally placed in service for purposes of
section 45V, even though the facility con-
tains some used property, provided the
fair market value of the used property is
not more than 20 percent of the facility’s
total value (the cost of the new property
plus the value of the used property) (80/20
Rule). Proposed §1.45V-6(b) would fur-
ther provide that for purposes of the 80/20
Rule, the cost of new property includes all
properly capitalized costs of the new prop-
erty included within the facility. Proposed
§1.45V-6(b) would provide that, if a facil-
ity satisfies the requirements of the 80/20
Rule, then the date on which such facility
is considered originally placed in service
for purposes of section 45V(a)(1) is the
date on which the new property added to
the facility is placed in service. Proposed
§1.45V-6(b) would also provide that the
80/20 Rule applies to any existing facility,
regardless of whether the facility previ-
ously produced qualified clean hydrogen
and regardless of when the facility was
originally placed in service (before appli-
cation of proposed §1.45V-6(b)). Exam-
ples 4 and 5 of proposed §1.45V-6(c)
would provide examples illustrating the
application of the 80/20 Rule.
VIII. Election to Treat a Clean Hydrogen
Production Facility as Energy Property
for Purposes of the Section 48 Credit
A. Overview
Section 48(a)(15) allows a taxpayer
that owns and places in service a speci-
fied clean hydrogen production facility (as
defined in section 48(a)(15)(C)) to make
an irrevocable election to claim the section
48 credit in lieu of the section 45V credit
for any qualified property (as defined in
section 48(a)(5)(D)) that is part of the
facility. This provision is effective for
property placed in service after December
31, 2022. For any property that is placed
in service after December 31, 2022, and
the construction of which begins before
January 1, 2023, section 13204(c)(3) of
the IRA provides that section 48(a)(15)
applies only to the extent of the basis of
such property that is attributable to con-
struction, reconstruction, or erection
occurring after December 31, 2022.
Proposed §1.48-15(a) would provide
that a taxpayer that owns and places in
service a specified clean hydrogen pro-
duction facility (as defined in section
48(a)(15)(C) and proposed §1.48-15(b))
can make an irrevocable election under
section 48(a)(15)(C)(ii)(II) to treat any
qualified property (as defined in section
48(a)(5)(D)) that is part of the facility as
energy property for purposes of section
48.
Proposed §1.48-15(b) would define the
term “specified clean hydrogen produc-
tion facility” to mean any qualified clean
hydrogen production facility (within the
meaning of section 45V(c)(3) and pro-
posed §1.45V-1(a)(10)): (i) that is placed
in service after December 31, 2022; (ii)
with respect to which no section 45V credit
or section 45Q credit has been allowed,
and for which the taxpayer makes an irre-
vocable election to have section 48(a)(15)
apply; and (iii) for which an unrelated
party has verified in the manner specified
in proposed §1.48-15(e) that such facility
produces hydrogen through a process that
results in lifecycle GHG emissions that
are consistent with the hydrogen that such
facility was designed and expected to pro-
duce under section 48(a)(15)(A)(ii) and
proposed §1.48-15(c).
Proposed §1.48-15(c)(1) would pro-
vide the energy percentage (used by a
taxpayer to calculate a section 48 credit)
for a specified clean hydrogen produc-
tion facility that is designed and reason-
ably expected to produce qualified clean
hydrogen through a process that results
in a lifecycle GHG emissions rate of not
greater than 4 kilograms of CO2e per kilo-
gram of hydrogen. Proposed §1.48-15(c)
(2) would further provide that “designed
and reasonably expected to produce”
means hydrogen produced through a
process that results in the lifecycle GHG
emissions rate specified in the annual
verification report for the taxable year in

Bulletin No. 2024–14 773 April 1, 2024
which the section 48(a)(15) election is
made. The Treasury Department and the
IRS request comments on this proposed
rule and whether there are any challenges
to using the lifecycle GHG emissions
rate achieved in the taxable year in which
the section 48(a)(15) election is made to
determine the facility’s energy percentage
for purposes of calculating the section 48
credit amount.
B. Election procedures
1. Time and Manner of Making Election
Proposed §1.48-15(d)(1) would pro-
vide that, to make an election under sec-
tion 48(a)(15)(c)(ii)(II), a taxpayer must
claim the section 48 credit with respect
to a specified clean hydrogen produc-
tion facility on a Form 3468, Investment
Credit, or any successor form(s), and
file the form with the taxpayer’s Federal
income tax return or information return
for the taxable year in which the specified
clean hydrogen production facility is orig-
inally placed in service. Proposed §1.48-
15(d)(1) would provide that the taxpayer
must also attach a statement to its Form
3468, Investment Credit, or any successor
form(s), filed with its Federal income tax
return or information return that includes
all the information required by the instruc-
tions to Form 3468, Investment Credit, or
any successor form(s), for each specified
clean hydrogen production facility sub-
ject to an election. Proposed §1.48-15(d)
(1) would provide that a separate election
must be made for each specified clean
hydrogen production facility that meets
the requirements provided in section 48(a)
(15) to treat the qualified property that is
part of the facility as energy property.
Proposed §1.48-15(d)(1) would fur-
ther provide that, if any taxpayer owning
an interest in a specified clean hydrogen
production facility makes an election with
respect to the facility, then that election
would be binding on all taxpayers that
directly or indirectly own an interest in
the facility. Thus, consistent with section
48(a)(15)(B), if a taxpayer owning an
interest in a specified clean hydrogen pro-
duction facility makes an election under
section 48(a)(15)(C)(ii)(II), then no other
taxpayer owning an interest in the same
facility will be allowed a section 45V
credit or section 45Q credit with respect
to the facility.
The Treasury Department and the IRS
request comments on whether, in the con-
text of a specified clean hydrogen produc-
tion facility that is directly owned through
an arrangement properly treated as a ten-
ancy-in-common for Federal income tax
purposes or through an organization that
has made a valid election under section
761(a) of the Code, each co-owner’s or
member’s undivided ownership share of
the qualified property comprised in the
facility should be treated for purposes of
section 48(a)(15)(C)(ii)(II) as a separate
facility owned by such co-owner or mem-
ber, with each such co-owner or member
eligible to make a separate election under
section 48(a)(15)(C)(ii)(II) to claim the
section 48 credit in lieu of the section 45V
credit with respect to its undivided owner-
ship interest in the facility or share of the
underlying qualified property.
2. Special Rule for Partnerships and S
Corporations
Proposed §1.48-15(d)(2) would pro-
vide that, in the case of a specified clean
hydrogen production facility owned by a
partnership or an S corporation, the elec-
tion under section 48(a)(15)(C)(ii)(II)
would be made by the partnership or S
corporation and would be binding on all
ultimate credit claimants (as defined in
§1.50-1(b)(3)(ii)). Proposed §1.48-15(d)
(2) would provide that the partnership or S
corporation must file a Form 3468, Invest-
ment Credit, or any successor forms(s),
with its partnership or S corporation return
for the taxable year in which the speci-
fied clean hydrogen production facility is
placed in service to indicate that it is mak-
ing the election, and attach a statement
that includes all the information required
by the instructions to Form 3468, Invest-
ment Credit, or any successor form(s), for
each specified clean hydrogen production
facility subject to the election. Proposed
§1.48-15(d)(2) would provide that the
ultimate credit claimant’s section 48 credit
must be based on each claimant’s share of
the basis (as defined in §1.46-3(f)) of the
specified clean hydrogen production facil-
ity on a completed Form 3468, Investment
Credit, or any successor form(s), and file
such form with a Federal income tax return
or information return for the taxable year
that ends with or within the taxable year
in which the partnership or S corporation
made the election. Proposed §1.48-15(d)
(2) would provide that the partnership or S
corporation making the election must pro-
vide the ultimate credit claimants with the
necessary information to complete Form
3468, Investment Credit, or any successor
form(s), to claim the section 48 credit.
3. Election Irrevocable
Proposed §1.48-15(d)(3) would pro-
vide that the election to treat any qualified
property that is part of a specified clean
hydrogen production facility as energy
property would be irrevocable.
4. Election Availability Date
Proposed §1.48-15(d)(4) would pro-
vide that the election to treat any qualified
property that is part of a specified clean
hydrogen production facility as energy
property would be available for prop-
erty placed in service after December 31,
2022, and, for any property that began
construction before January 1, 2023, only
to the extent of the basis thereof attribut-
able to the construction, reconstruction, or
erection after December 31, 2022.
C. Third-party verification
Proposed §1.48-15(e)(1) would pro-
vide that, in the case of a taxpayer that
makes an election under section 48(a)(15)
(c)(ii)(II) to treat any qualified property
that is part of a specified clean hydrogen
production facility as energy property for
purposes of the section 48 credit, the tax-
payer must obtain an annual verification
report for the taxable year in which the
election is made and for each taxable year
thereafter of the recapture period speci-
fied in proposed §1.48-15(f)(3). Proposed
§1.48-15(e)(1) would further provide that
the taxpayer must also submit the annual
verification report as an attachment to
the Form 3468, Investment Credit, or any
successor form(s), for the taxable year in
which the election is made.
Further, proposed §1.48-15(e)(2)(i)
would provide that the annual verification
report must be signed under penalties of
perjury by a qualified verifier (as defined

April 1, 2024 774 Bulletin No. 2024–14
in proposed §1.45V-5(h)) and contain (i)
the information specified in §§1.45V-5(b)
and 1.45V-5(d) through 1.45V-5(h); (ii) a
statement attesting to the lifecycle GHG
emissions rate (determined under section
45V(c) and §1.45V-4) of the hydrogen
produced at the specified clean hydrogen
production facility for the taxable year to
which the annual verification report relates
and that the operation, during such taxable
year, of the specified clean hydrogen pro-
duction facility, and any EACs applied
pursuant to §1.45V-4(d) for the purpose
of accounting for such facility’s emis-
sions, are accurately reflected in the data
the taxpayer entered into the most recent
GREET model (as defined in §1.45V-1(a)
(8)(ii)) (or in the data the taxpayer pro-
vided to the DOE in support of the tax-
payer’s request for an emissions value),
to determine the lifecycle GHG emissions
rate of the hydrogen undergoing verifica-
tion; and (iii) an attestation that the facil-
ity produced hydrogen through a process
that results in a lifecycle GHG emissions
rate that is consistent with, or lower than,
the lifecycle GHG emissions rate of the
hydrogen that such facility was designed
and expected to produce.
Proposed §1.48-15(e)(2)(ii) would
provide that if a transfer election has been
made under section 6418(a) of the Code
with respect to the section 48 credit for a
specified clean hydrogen production facil-
ity, then the conflict attestation contain-
ing the information specified in proposed
§1.45V-5(e)(1) must be made with respect
to the qualified verifier’s independence
from both the eligible taxpayer (as defined
in section 6418(f)(2) and §1.6418-1(b))
and the transferee taxpayer (as described
in section 6418(a) and defined in §1.6418-
1(m)), and without regard to the require-
ments under proposed §1.45V-5(e)(2).
Proposed §1.48-15(e)(2)(iii) would
provide that in the event the facility pro-
duces qualified clean hydrogen through
a process that results in a lifecycle GHG
emissions rate greater than the lifecy-
cle GHG emissions rate such facility
was designed and expected to produce
(and thus the qualified verifier cannot
provide the attestation specified in pro-
posed §1.48-15(e)(2)(i)(B)), resulting in a
reduced energy percentage under section
48(a)(15)(A)(ii) with respect to such facil-
ity, an emissions tier recapture event under
proposed §1.48-15(f)(2) will occur. Pro-
posed §1.48-15(e)(2)(iv) would provide
that the hydrogen a facility was “designed
and expected to produce” would mean
hydrogen produced through a process that
results in the lifecycle GHG emissions
rate specified in proposed §1.48-15(c)(2).
Additionally, proposed §1.48-15(e)(2)
(v) would require that the annual verifica-
tion report must be signed and dated by
the qualified verifier no later than the due
date, including extensions, of the Federal
income tax return or information return
for the taxable year in which the hydrogen
undergoing verification was produced.
Proposed §1.48-15(e)(2)(vi) would pro-
vide that in addition to the recordkeeping
requirements set forth in §1.48-15(g), the
taxpayer must retain the annual verifica-
tion report for at least six years after the
due date, with extensions, for filing the
Federal income tax return or information
return for the taxable year in which the
hydrogen undergoing verification was
produced.
D. Credit recapture
Section 48(a)(15)(E) directs the Sec-
retary to issue such regulations or other
guidance as determined necessary to carry
out the purposes of section 48, including
regulations or other guidance addressing
recapture of so much of the credit allowed
under section 48 as exceeds the amount of
the credit that would have been allowed
if the expected production were consistent
with the actual verified production or all
of the credit so allowed in the absence of
such verification.
1. Emissions Tier Recapture Events
Under Section 48(a)(15)(E)
Proposed §1.48-15(f)(1), would pro-
vide that, for purposes of section 48(a)(15)
(E), in any taxable year of the recapture
period specified in proposed §1.48-15(f)
(3) in which an emissions tier recapture
event (as defined in proposed §1.48-15(f)
(2)) occurs, the tax imposed on the tax-
payer under chapter 1 of the Code for the
taxable year of the emissions tier recapture
event is increased by the recapture amount
specified in proposed §1.48-15(f)(4).
Proposed §1.48-15(f)(2) would pro-
vide that an emissions tier recapture event
under section 48(a)(15)(E) occurs during
any taxable year of the recapture period
specified in proposed §1.48-15(f)(3) under
the following circumstances: (i) the tax-
payer fails to obtain an annual verification
report by the deadline for filing its Federal
income tax return or information return
(including extensions) for any taxable year
in which an annual verification report was
required under proposed §1.48-15(e)(1);
(ii) the specified clean hydrogen produc-
tion facility actually produced hydrogen
through a process that results in a lifecycle
GHG emissions rate that can only support
a lower energy percentage than the energy
percentage used to calculate the amount of
the section 48 credit for such facility for
the year in which the facility is placed in
service; or (iii) the specified clean hydro-
gen production facility actually produced
hydrogen through a process that results in
a lifecycle GHG emissions rate of greater
than 4 kilograms of CO2e per kilogram of
hydrogen.
2. Recapture Period Under Section 48(a)
(15)(E)
Proposed §1.48-15(f)(3) would pro-
vide that the recapture period begins on
the first day of the first taxable year after
the taxable year in which the facility was
placed in service and ends on the last day
of the fifth taxable year after the close of
the taxable year in which the facility was
placed in service. For example, if a calen-
dar-year taxpayer places in service a spec-
ified clean hydrogen production facility
on June 1, 2023, then the last day of the
fifth taxable year following the close of
the taxable year in which the facility was
placed in service is December 31, 2028.
Therefore, the recapture period is January
1, 2024, through December 31, 2028.
3. Recapture Amount
Proposed §1.48-15(f)(4) would provide
that, if an emissions tier recapture event
has occurred under proposed §1.48-15(f)
(2), the recapture amount for the taxable
year in which the emissions tier recap-
ture event occurred is equal to 20 percent
of the excess of (i) the section 48 credit
allowed to the taxpayer for the specified
clean hydrogen production facility for
the taxable year in which the facility was

Bulletin No. 2024–14 775 April 1, 2024
placed in service, over (ii) the section 48
credit that would have been allowed to the
taxpayer for the facility if the taxpayer
had used the energy percentage supported
by the actual production to calculate the
amount of the section 48 credit. Proposed
§1.48-15(f)(4)(ii) would provide that, in
the case of any emissions tier recapture
event described in proposed §1.48-15(f)
(2), the carrybacks and carryovers under
section 39 must be adjusted by reason of
the emissions tier recapture event. Pro-
posed §1.48-15(f)(4)(iii) would further
provide that, if the specified clean hydro-
gen production facility produced hydrogen
through a process that results in a lifecycle
GHG emissions rate of greater than 4 kilo-
grams of CO2e per kilogram of hydrogen,
or if the taxpayer fails to submit an annual
verification report with its Federal income
tax return or information return with
respect to a specified clean hydrogen pro-
duction facility for any taxable year of the
recapture period, then the section 48 credit
that would have been allowed to the tax-
payer for the facility would be zero. Thus,
in that case, the recapture amount in the
taxable year of the emissions tier recap-
ture event would be 20 percent of the sec-
tion 48 credit allowed to the taxpayer with
respect to such specified clean hydrogen
production facility. Proposed §1.48-15(f)
(5) would provide an example illustrating
the application of proposed §1.48-15(f)(1)
through (4).
Unless modified in future guidance,
any reporting of emissions tier recap-
ture under proposed §1.48-15(f) is made
on the taxpayer’s annual tax return. The
Secretary may issue future guidance and/
or prescribe tax forms and instructions
to address the reporting of emissions tier
recapture under proposed §1.48-15(f) and
any additional annual reporting obliga-
tions. The Treasury Department and IRS
therefore request comments on the report-
ing of recapture and any additional annual
reporting obligations.
4. Coordination with Recapture Rules
under Sections 50 and 48(a)(10)(C)
Proposed §1.48-15(f)(6) would provide
that, during any taxable year of the recap-
ture period for any credit allowed under
section 48(a) with respect to qualified
property that is part of a specified clean
hydrogen production facility, the recap-
ture rules would be applied, if applicable,
in the following order: (i) section 50(a)
(recapture in case of dispositions, etc.);
(ii) section 48(a)(10)(C) (recapture relat-
ing to the prevailing wage requirements);
and (iii) section 48(a)(15)(E) (emissions
tier recapture).
E. Recordkeeping Requirements
Proposed §1.45V-2(c) would provide
that a taxpayer claiming the section 45V
credit would need to meet the general
recordkeeping requirements under section
6001 necessary to substantiate the amount
of the section 45V credit claimed by the
taxpayer. Section 6001 provides that
every person liable for any tax imposed
by the Code, or for the collection thereof,
must keep such records as the Secretary
may from time to time prescribe. Section
1.6001-1(a) provides that any person sub-
ject to income tax must keep such perma-
nent books of account or records as are
sufficient to establish the amount of gross
income, deductions, credits, or other mat-
ters required to be shown by such person
in any return of such tax. Section 1.6001-
1(e) provides that the books and records
required by §1.6001-1 must be retained so
long as the contents thereof may become
material in the administration of any inter-
nal revenue law.
Proposed §1.45V-2(c) would also pro-
vide that taxpayers must retain all raw
data used for submission of the request
for an emissions value to the DOE for at
least six years after the due date (including
extensions) for filing the Federal income
tax return or information return to which
the PER petition is ultimately attached.
Proposed §1.48-15(g) would provide
corresponding recordkeeping rules.
IX. Renewable Natural Gas and Fugitive
Sources of Methane
The Treasury Department and the IRS
intend to provide rules addressing hydro-
gen production pathways that use renew-
able natural gas (RNG) or other fugitive
sources of methane (for example, from
coal mine operations) for purposes of the
section 45V credit. In the context of this
guidance, the term RNG refers to biogas
that has been upgraded to be equivalent
in nature to fossil natural gas. Fugitive
methane refers to the release of methane
through, for example, equipment leaks,
or venting during the extraction, pro-
cessing, transformation, and delivery of
fossil fuels to the point of final use, such
as coal mine methane or coal bed meth-
ane. Such rules would apply to all RNG
used for the purposes of the section 45V
credit and would provide conditions that
must be met before certificates for RNG
or fugitive methane (representations of
the environmental attributes of the meth-
ane) and the GHG emissions benefits they
are meant to represent may be taken into
account in determining lifecycle GHG
emissions rates for purposes of the sec-
tion 45V credit. Such conditions would be
logically consistent with but not identical
to the incrementality, temporal matching,
and deliverability requirements for elec-
tricity derived EACs, in that they would
be designed to reflect the ways in which
additional RNG or demand for fugitive
methane can impact lifecycle GHG emis-
sions and also to address the differences
between electricity and methane, includ-
ing but not limited to the different sources
of emissions, markets, available tracking
and verification methods, and potential for
perverse incentives.
The Treasury Department and the IRS
anticipate requiring that for purposes
of the section 45V credit, for biogas or
biogas-based RNG to receive an emis-
sions value consistent with that gas (and
not standard natural gas), the RNG used
during the hydrogen production process
must originate from the first productive
use of the relevant methane. For any spe-
cific source of biogas,
27
productive use is
generally defined as any valuable applica-
tion of biogas (including to provide heat
or cooling, generate electricity, or upgrade
to RNG), and specifically excludes vent-
ing to the atmosphere or capture and flar-
ing. The Treasury Department and the IRS
further propose to define “first productive
27
Biogas is gas resulting from the decomposition of organic matter under anaerobic conditions, and the principal constituent is methane (50-75 percent).

April 1, 2024 776 Bulletin No. 2024–14
use” of the relevant methane as the time
when a producer of that gas first begins
using or selling it for productive use in the
same taxable year as (or after) the relevant
hydrogen production facility was placed in
service. The implication of this proposal is
that biogas from any source that had been
productively used in a taxable year prior
to the taxable year in which the relevant
hydrogen production facility was placed
in service would not receive an emissions
value consistent with biogas-based RNG
but would instead receive a value consis-
tent with natural gas in the determination
of the emissions value for that specific
hydrogen production pathway. This pro-
posal would limit emissions associated
with the diversion of biogas or RNG from
other pre-existing productive uses.
For existing biogas sources that typi-
cally productively use or sell a portion of
the biogas and flare or vent the remaining
excess, the flared or vented portion may be
eligible for first productive use as defined
above if the flaring or venting volume can
be adequately demonstrated and verified.
In such circumstances, the flared or vented
volume may be determined based on the
previous taxable year’s flared or vented
volume as demonstrated via reported data
to programs such as the Greenhouse Gas
Reporting Program. Requirements would
be established to reduce the risk that
entities will deliberately generate addi-
tional biogas for purposes of the section
45V credit, above historic and expected
future levels or an equivalent metric, for
example by generating biogas through
the intentional generation of waste, and
to ensure that other factors affecting the
emissions rate of hydrogen produced
with biogas-based RNG or RNG procure-
ment via RNG certificates are taken into
account. The Treasury Department and the
IRS request comment on these and other
potential conditions. Any fugitive sources
of methane would be treated in the same
fashion as described above for RNG.
For purposes of the section 45V credit,
hydrogen producers using RNG or fugi-
tive methane would be required to acquire
and retire corresponding attribute certifi-
cates through a book-and-claim system
that can verify in an electronic tracking
system that all applicable requirements
are met. Hydrogen producers would also
be required to have a pipeline intercon-
nection and measurement using a reve-
nue grade meter. These rules would apply
to the use of certificates with both direct
and non-direct claims of RNG or fugitive
methane use. Direct use would involve
the production of hydrogen with a direct
exclusive pipeline connection to a facil-
ity that generates RNG or from which
fugitive methane is being sourced, while
non-direct use would involve producing
hydrogen using RNG or fugitive meth-
ane sourced from a commercial or com-
mon-carrier natural gas pipeline. In all
cases, attribute certificates would need to
document the RNG or fugitive methane
procurement for qualified clean hydrogen
production claims and that the environ-
mental attributes of the RNG or fugitive
methane being used are not sold to other
parties or used for compliance with other
policies or programs.
The Treasury Department and the IRS
request comments on these and other rules
related to RNG and fugitive methane.
Regarding fugitive methane, the Treasury
Department and the IRS request comment
on the appropriate lifecycle analysis con-
siderations associated with specific fugi-
tive methane sources, such as counterfac-
tual scenarios, to account for direct and
significant indirect emissions, and also
the manner in which to assess methane
from these sources if the current practice
is flaring. These comments may inform
future versions of 45VH2-GREET. In par-
ticular, the Treasury Department and the
IRS request comments on the following
questions:
(1) What data sources and peer
reviewed studies provide information on
RNG production systems (including bio-
gas production and reforming systems),
markets, monitoring, reporting, and ver-
ification processes, and GHG emissions
associated with these production systems
and markets?
(2) What conditions for the use of bio-
gas and RNG would ensure that emissions
accounting for purposes of the section
45V credit reflects and reduces the risk of
indirect emissions effects from hydrogen
production using biogas and RNG? How
can taxpayers verify that they have met
these requirements?
(3) How broadly available and reliable
are existing electronic tracking systems
for RNG certificates in book-and-claim
systems? What developments may be
required, if any, before such systems are
appropriate for use with RNG certificates
used to claim the section 45V credit?
(4) How should RNG or fugitive meth-
ane resulting from the first productive use
of methane be defined, documented, and
verified? What industry best practices or
alternative methods would enable such
verification to be reflected in an RNG or
methane certificate or other documenta-
tion? What additional information should
be included in RNG certificates to help
certify compliance?
(5) What are the emissions associated
with different methods of transporting
RNG or fugitive methane to hydrogen
producers (for example, vehicular trans-
port, pipeline)?
(6) How can the section 45V regula-
tions reflect and mitigate indirect emis-
sions effects from the diversion of biogas
or RNG or fugitive methane from poten-
tial future productive uses? What other
new uses of biogas or RNG or fugitive
methane could be affected in the future if
more gas from new capture and produc-
tive use of methane from these sources is
used in the hydrogen production process?
(7) How can the potential for the gen-
eration of additional emissions from the
production of additional waste, waste
diversion from lower-emitting disposal
methods, and changes in waste manage-
ment practices be limited through emis-
sions accounting or rules for biogas and
RNG use established for purposes of the
section 45V credit?
(8) To limit the additional production
of waste, should the final regulations
limit eligibility to methane sources that
existed as of a certain date or waste or
waste streams that were produced before
a certain date, such as the date that the
IRA was enacted? If so, how can that be
documented or verified? How should any
changes in volumes of waste and waste
capacity at existing methane sources be
documented and treated for purposes of
the section 45V credit? How should addi-
tional capture of existing waste or waste
streams be documented and treated?
(9) Are geographic or temporal deliv-
erability requirements needed to reflect
and reduce the risk of indirect emissions
effects from biogas and RNG or fugitive
methane use in the hydrogen production

Bulletin No. 2024–14 777 April 1, 2024
process? If so, what should these require-
ments be and are electronic tracking sys-
tems able to capture these details?
(10) How should variation in methane
leakage across the existing natural gas
pipeline system be taken into account in
estimating the emissions from the trans-
portation of RNG or fugitive methane or
establishing rules for RNG or fugitive
methane use? How should methane leak-
age rates be estimated based on factors
such as the location where RNG or fugi-
tive methane is injected and withdrawn,
the distance between the locations where
RNG or fugitive methane is injected and
withdrawn, season of year, age of pipe-
lines, or other factors? Are data or analysis
available to support this?
(11) What counterfactual assumptions
and data should be used to assess the
lifecycle GHG emissions of hydrogen
production pathways that rely on RNG?
Is venting an appropriate counterfactual
assumption for some pathways? If not,
what other factors should be considered?
(12) What criteria should be used in
assessing biogas and RNG-based PERs?
What practices should be put in place
to reduce the risk of unintended conse-
quences (for example, gaming)? Should
conservative default parameters and coun-
terfactuals be used unless proven other-
wise by a third party?
The Treasury Department and the IRS
understand that, before final regulations
addressing the section 45V credit are
issued, taxpayers will use 45VH2-GREET
or the PER process to determine a lifecy-
cle GHG emissions rate for hydrogen pro-
duction facilities that rely on direct use of
landfill gas or any fugitive methane feed-
stock, provided they meet the requirement
that the gas being used results from the
first productive use of methane from the
landfill source or fugitive methane source.
The term “direct use” means that there
is a direct, exclusive pipeline connection
between the hydrogen production facility
and the source of the gas that is procured
(for example, the upgrading or processing
facility that produces RNG from landfill
gas). Relative to a book-and-claim sys-
tem, the direct connection between a gas
supplier and a hydrogen production facil-
ity can reduce the uncertainty of pipeline
leakage, tracking, and verification. The
Treasury Department and the IRS are
considering providing a rule that taxpay-
ers would need to provide and maintain
documentation to substantiate that (i) the
RNG being used results from the first pro-
ductive use of the methane at the landfill
source and is not displacing a previous
productive use; and (ii) the environmental
attributes of the RNG being used, includ-
ing those of the underlying biogas, are
not sold to other parties or used for com-
pliance with other policies or programs.
When additional conditions addressing
hydrogen production pathways that use
RNG or fugitive methane for purposes
of the section 45V credit are determined
at a later date, taxpayers would also be
required to maintain documentation that
the RNG or fugitive methane being used
meets those requirements and to acquire
and retire any RNG or fugitive methane
certificates that are established. The Trea-
sury Department and the IRS are also con-
sidering providing rules for using RNG
certificates and documentation required in
the event additional conditions for use of
RNG are later imposed.
Tracking and verification mechanisms
for RNG or fugitive methane specific to
the needs of the section 45V credit are
not yet available, and existing systems
have limited capabilities for tracking and
verifying RNG pathways, especially in
the part of the production process before
the methane has been reformed to RNG.
Existing tracking and verification systems
do not clearly distinguish between inputs,
verify or require verification of underly-
ing practices claimed by RNG production
sources, require proof of generator inter-
connection or revenue-quality metering,
provide validation of generation meth-
odology, include exclusively United
States based-generation, verify genera-
tor registration, and track the vintage of
generator interconnection. The Treasury
Department and the IRS are considering
providing rules to address whether or how
book-and-claim systems with sufficient
tracking and verification mechanisms
may be used to attribute the environmen-
tal benefits of RNG or fugitive methane
to hydrogen producers in the final regula
-
tions. Additional certainty is also needed
to accurately account for emissions from
pathways that do not yet exist in 45VH2-
GREET and from RNG that is injected
into a commercial or common-carrier
pipeline. The Treasury Department and
the IRS understand that, before final reg-
ulations are issued, taxpayers will deter-
mine a lifecycle GHG emissions rate for
hydrogen production pathways using
landfill gas by using 45VH2-GREET in
cases in which the hydrogen production
facility is receiving RNG through a direct
dedicated pipeline connection and mea-
surement using a revenue grade meter.
The PER process will not address other
hydrogen production pathways using bio-
gas and RNG until after the final regula-
tions are issued.
Proposed Applicability Dates
These regulations are proposed to
apply to taxable years beginning after
these proposed regulations are published
in the Federal Register. Taxpayers may
rely on these proposed regulations for tax-
able years beginning after December 31,
2022, and before the date the final regu-
lations are published in the Federal Reg-
ister, provided the taxpayers follow the
proposed regulations in their entirety and
in a consistent manner.
Special Analyses
I. Regulatory Planning and Review
Pursuant to the Memorandum of
Agreement, Review of Treasury Regula-
tions under Executive Order 12866 (June
9, 2023), tax regulatory actions issued by
the IRS are not subject to the requirements
of section 6 of Executive Order 12866, as
amended. Therefore, a regulatory impact
assessment is not required.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520) (PRA) generally
requires that a Federal agency obtain the
approval of the Office of Management
and Budget (OMB) before collecting
information from the public, whether such
collection of information is mandatory,
voluntary, or required to obtain or retain a
benefit. A Federal agency may not conduct
or sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information dis-
plays a valid control number.

April 1, 2024 778 Bulletin No. 2024–14
The collections of information in
these proposed regulations would include
reporting, third-party disclosure, and
recordkeeping requirements. These col-
lections are necessary for taxpayers to
claim the section 45V credit, or the section
48 credit with respect to a specified clean
hydrogen production facility, and for the
IRS to validate that taxpayers have met
the regulatory requirements and are enti-
tled to claim either credit.
The recordkeeping requirements in
these proposed regulations would include
the requirement that taxpayers claiming
the section 45V credit, or the section 48
credit with respect to a specified clean
hydrogen production facility, need to meet
the general recordkeeping provisions
under section 6001 necessary to substanti-
ate the amount of the section 45V credit or
section 48 credit claimed by the taxpayer
as detailed in proposed §§1.45V-2(c) and
1.48-15(g). These recordkeeping require-
ments are considered general tax records
under §1.6001-1(e). For PRA purposes,
general tax records are already approved
by OMB under 1545-0074 for individuals/
sole proprietors, 1545-0123 for business
entities, and 1545-0047 for tax-exempt
organizations, and 1545-0092 for trust and
estate filers.
The proposed regulations would refer-
ence the DOE’s process for applicants to
request an emissions value from the DOE
that could then be used to file a petition
with the Secretary for a PER determina-
tion as detailed in proposed §1.45V-4. The
petition made to the IRS will be performed
by attaching the emissions value obtained
from the DOE to the filing of Form 7210,
Clean Hydrogen Production Credit, or
any successor form(s). The burden for
these requirements will be included within
the Form and Instructions for Form 7210.
Form 7210 will be approved by OMB, in
accordance with 5 CFR 1320.10, under
the following OMB Control Numbers:
1545-0074 for individuals, 1545-0123
for businesses, 1545-0047 for tax-exempt
organizations, and 1545-NEW for trust
and estate filers.
The proposed regulations mention
the collection of information associated
with the process for taxpayers to request
an emissions value from the DOE and is
reflected in the DOE’s Paperwork Reduc-
tion Act Submission relating to such pro-
cess. These proposed regulations are not
creating or changing any of the collection
requirements submitted by DOE to OMB
for approval. Approval of the DOE’s
Paperwork Reduction Act Submission
is pending with OMB. These proposed
regulations are not creating or changing
any of the collection requirements being
approved by OMB under the DOE OMB
Control Number 1910-XXXX.
The proposed regulations would
include reporting requirements that tax-
payers claiming the section 45V credit pro-
vide a verification report with their annual
Federal income tax return or information
return for each taxable year in which they
claim the section 45V credit as detailed in
proposed §1.45V-5. The proposed regula-
tions also include a third-party disclosure
requirement that a verification report must
be certified by an unrelated third party.
The verification report must contain an
attestation regarding the taxpayer’s pro-
duction of qualified clean hydrogen for
sale or use, the amount of qualified clean
hydrogen sold or used by the taxpayer,
conflicts of interest, the verifier’s quali-
fications, and documentation necessary
to substantiate the verification process.
The taxpayer must submit the verification
report to the IRS by attaching it to Form
7210, Clean Hydrogen Production Credit,
or any successor form(s). The burden for
these requirements will be included within
the Form and Instructions for Form 7210.
Form 7210 will be approved by OMB, in
accordance with 5 CFR 1320.10, under
the following OMB Control Numbers:
1545-0074 for individuals, 1545-0123
for businesses, 1545-0047 for tax-exempt
organizations, and 1545-NEW for trust
and estate filers.
The proposed regulations include
reporting, third-party disclosure, and
recordkeeping requirements for taxpay-
ers making the election under section
48(a)(15) to claim the energy credit
under section 48 with respect to a spec-
ified clean hydrogen production facil-
ity. The reporting requirement is that
taxpayers submit an annual verification
report with their Federal income tax
return or information return for the year
in which they claim the section 48 credit.
The third-party disclosure requirement is
that an annual verification report must be
certified by an unrelated third party. The
annual verification report must contain
an attestation regarding the taxpayer’s
production of qualified clean hydrogen
for sale or use, the amount of qualified
clean hydrogen sold or used by the tax-
payer, conflicts of interest, the verifier’s
qualifications, the lifecycle GHG emis-
sions rate of the hydrogen that the spec-
ified clean hydrogen production facility
produced, and documentation necessary
to substantiate the verification process.
The proposed regulations also include
a requirement that the taxpayer obtain
and retain an annual verification report
for each taxable year of the recapture
period. The taxpayer must obtain the
annual verification report by the return
filing deadline (with extensions) for the
taxable year to which the annual verifi-
cation report relates. The annual verifi-
cation report must contain an attestation
regarding the taxpayer’s production of
qualified clean hydrogen for sale or use
during the taxable year, the amount of
qualified clean hydrogen sold or used
by the taxpayer during the taxable year,
the lifecycle GHG emissions rate of the
hydrogen that the specified clean hydro-
gen production facility produced during
the taxable year, conflicts of interest, the
verifier’s qualifications, and documenta-
tion necessary to substantiate the verifi-
cation process. The annual verification
report for the taxable year in which the
section 48(a)(15) election is made will
be attached to Form 3468. The annual
verification report for each taxable year
of the recapture period will be retained
by the taxpayer for at least six years
after the due date (with extensions) for
filing the Federal income tax return or
information return for the year to which
the report relates. The burden for these
requirements will be included within the
Form and Instructions for Form 3468.
The revisions to Form 3468 will be
approved by OMB, in accordance with
5 CFR 1320.10, under the following
OMB Control Numbers: 1545-0074 for
individuals, 1545-0123 for businesses,
1545-0047 for tax-exempt organizations,
and 1545-0155 for trust and estate filers.
III. Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) (RFA) imposes certain

Bulletin No. 2024–14 779 April 1, 2024
requirements with respect to Federal rules
that are subject to the notice and comment
requirements of section 553(b) of the
Administrative Procedure Act (5 U.S.C.
551 et seq.) and that are likely to have a
significant economic impact on a sub-
stantial number of small entities. Unless
an agency determines that a proposal is
not likely to have a significant economic
impact on a substantial number of small
entities, section 603 of the RFA requires
the agency to present an initial regula-
tory flexibility analysis (IRFA) of the
proposed rule. The Treasury Department
and the IRS have not determined whether
the proposed rule, when finalized, will
likely have a significant economic impact
on a substantial number of small entities.
This determination requires further study.
However, because there is a possibility of
significant economic impact on a substan-
tial number of small entities, an IRFA is
provided in these proposed regulations.
The Treasury Department and the IRS
invite comments on both the number of
entities affected and the economic impact
on small entities.
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submit-
ted to the Chief Counsel of the Office of
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
business.
A. Need for and Objectives of the Rule
The proposed regulations provide
guidance to taxpayers intending to claim
the section 45V credit for the production
of qualified clean hydrogen or make the
election under section 48(a)(15) to treat
qualified property that is part of a spec-
ified clean hydrogen production facility
as energy property and claim the sec-
tion 48 credit. The proposed regulations
would provide needed guidance for tax-
payers on use of the GREET model to
determine the lifecycle GHG emissions
rate resulting from the hydrogen produc-
tion process, procedures for petitioning
the Secretary for a PER determination,
requirements for the verification of the
production and sale or use of the hydro-
gen, requirements for modifications to
an existing hydrogen production facility,
and procedures for making the election
under section 48(a)(15).
B. Affected Small Entities
The RFA directs agencies to provide
a description of, and if feasible, an esti-
mate of, the number of small entities
that may be affected by the proposed
rules, if adopted. The Small Business
Administration’s Office of Advocacy
estimates in its 2023 Frequently Asked
Questions that 99.9 percent of American
businesses meet the definition of a small
business. The applicability of these pro-
posed regulations does not depend on
the size of the business, as defined by
the Small Business Administration. As
described more fully in the preamble
to this proposed regulation and in this
IRFA, sections 45V and 48(a)(15) and
these proposed regulations may affect
a variety of different businesses across
several different industries. Because
the potential credit claimants can vary
widely, it is difficult to estimate at this
time the impact of these proposed reg-
ulations, if any, on small businesses.
Although there is uncertainty as to the
exact number of small businesses within
this group, the current estimated number
of respondents to these proposed rules is
between 800 and 1000 taxpayers.
The Treasury Department and the IRS
expect to receive more information on the
impact on small businesses through com-
ments on these proposed rules and again
when taxpayers start using the guidance
and procedures provided in these pro-
posed regulations to claim the section 45V
credit, or the section 48 credit with respect
to a specified clean hydrogen production
facility.
C. Impact of the Rules
The proposed regulations provide rules
for how taxpayers can claim the section
45V credit, or the section 48 credit with
respect to a specified clean hydrogen pro-
duction facility. Taxpayers that claim the
section 45V credit, or the section 48 credit
with respect to a specified clean hydrogen
production facility, will have administra-
tive costs related to reading and under-
standing the rules as well as recordkeep-
ing and reporting requirements because
of the verification and Federal income tax
return or information return requirements.
The costs will vary across different-sized
entities and across the type of project(s) in
which such entities are engaged.
To claim a section 45V credit, a tax-
payer must determine the lifecycle GHG
emissions rate for all hydrogen produced
at a qualified clean hydrogen production
facility during the taxable year. If the
hydrogen production technology or feed-
stock used by the taxpayer to produce
hydrogen is addressed in the most recent
45VH2-GREET, the taxpayer must use
45VH2-GREET to determine the emis-
sions rate for the hydrogen produced
during that taxable year at the qualified
clean hydrogen production facility. If
the hydrogen production technology or
feedstock used by the taxpayer to pro-
duce hydrogen is not included in the most
recent 45VH2-GREET, the taxpayer must
petition the Secretary for a provisional
emissions rate (PER). As part of the pro-
cess for a taxpayer to petition for a PER, a
taxpayer must submit an application to the
DOE for an emissions value that it may
use to claim the section 45V credit.
In addition to determining the lifecycle
GHG emissions rate for hydrogen pro-
duced by the taxpayer at a qualified clean
hydrogen production facility during the
taxable year, before claiming the section
45V credit, a taxpayer must submit a ver-
ification report, certified by an unrelated
third party, attesting to the taxpayer’s pro-
duction of qualified clean hydrogen for
sale or use, the amount of qualified clean
hydrogen sold or used by the taxpayer,
conflicts of interest, the verifier’s qualifi-
cations, and documentation necessary to
substantiate the verification process. The
process for claiming the section 48 credit
with respect to a specified clean hydrogen
production facility requires a taxpayer to
submit an annual verification report with
its Federal income tax return or informa-
tion return for the taxable year in which it
claims the section 48 credit, as well as to
obtain an annual verification report for the
five taxable years following the taxable
year in which the section 48(a)(15) elec-
tion is made. Additionally, the taxpayer
would need to retain records sufficient to
establish compliance with these proposed
regulations for as long as may be relevant.
Although the Treasury Department
and the IRS do not have sufficient data
to determine precisely the likely extent
of the increased costs of compliance, the

April 1, 2024 780 Bulletin No. 2024–14
estimated burden of complying with the
recordkeeping and reporting requirements
are described in the Paperwork Reduction
Act section of the preamble.
D. Alternatives Considered
The Treasury Department and the IRS
considered alternatives to the proposed
regulations. The proposed regulations
were designed to minimize burdens for
taxpayers while ensuring that the statutory
requirements of sections 45V and 48(a)
(15) are met. For example, in providing
rules related to the information required
to be submitted to claim the section 45V
credit, or the section 48 credit with respect
to a specified hydrogen production facil-
ity, the Treasury Department and the IRS
considered whether the production and
sale or use of the hydrogen could be veri-
fied by an unrelated party without requir-
ing the unrelated party to possess certain
qualifications or conflict of interest char-
acteristics. Such an option would, how-
ever, increase the opportunity for fraud
or excessive payments under section 45V
or section 48. Section 45V(f) specifically
authorizes the IRS to promulgate regu-
lations or other guidance providing for
requirements for recordkeeping or infor-
mation reporting for purposes of admin-
istering the requirements of section 45V.
As described in the preamble to these pro-
posed regulations, these proposed rules
carry out that Congressional intent as the
verification requirements allow the IRS
to verify the taxpayer’s entitlement to the
section 45V credit.
Additionally, the Treasury Department
and the IRS considered whether to require
taxpayers to submit an annual verifica-
tion report with their Federal income tax
returns or information returns claiming the
section 45V credit. Section 45V requires
the taxpayer to obtain an annual verifica-
tion report, and the Treasury Department
and the IRS determined that requiring the
taxpayer to attach such a report to their
Federal income tax return or information
return is the most efficient way of ensur-
ing the completion and accuracy of the
report.
Additionally, the Treasury Department
and the IRS considered allowing taxpay-
ers to treat the section 45V credit as deter-
mined in the taxable year of hydrogen
production or verification. However, such
an option would create administrability
issues and potentially a mismatch between
the taxable year in which the hydrogen is
produced and the taxable year in which
the section 45V credit for such production
is claimed. Thus, the proposed regulations
would require the credit to be determined
in the taxable year of production.
Comments are requested on the
requirements in the proposed regulations,
including specifically whether there are
less burdensome alternatives that do not
increase the risk of duplication, fraud, or
improper payments under section 45V.
E. Duplicative, Overlapping, or
Conflicting Federal Rules
The proposed regulations would not
duplicate, overlap, or conflict with any rel-
evant Federal rules. As discussed above,
the proposed regulations would merely
provide procedures and definitions to
allow taxpayers to claim the section 45V
credit, or the section 48 credit with respect
to a specified clean hydrogen production
facility. The Treasury Department and the
IRS invite input from interested members
of the public on identifying and avoiding
overlapping, duplicative, or conflicting
requirements.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes
any Federal mandate that may result in
expenditures in any one year by a State,
local, or Tribal government, in the aggre-
gate, or by the private sector, of $100
million (updated annually for inflation).
This proposed rule does not include any
Federal mandate that may result in expen-
ditures by State, local, or Tribal govern-
ments, or by the private sector in excess of
that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local gov-
ernments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the Execu-
tive order. This proposed rule does not
have federalism implications and does
not impose substantial direct compliance
costs on State and local governments or
preempt State law within the meaning of
the Executive order.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to comments regarding the
notice of proposed rulemaking that are
submitted timely to the IRS as prescribed
in the preamble under the ADDRESSES
section. The Treasury Department and the
IRS request comments on all aspects of
the proposed regulations. All comments
will be made available at https://www.
regulations.gov. Once submitted to the
Federal eRulemaking Portal, comments
cannot be edited or withdrawn.
A public hearing has been scheduled
for March 25, 2024, beginning at 10:00
a.m. (ET), in the Auditorium at the Inter-
nal Revenue Building, 1111 Constitu-
tion Avenue NW, Washington, DC. Due
to building security procedures, visitors
must enter at the Constitution Avenue
entrance. In addition, all visitors must
present photo identification to enter the
building. Because of access restrictions,
visitors will not be admitted beyond the
immediate entrance area more than 30
minutes before the hearing starts. Partic-
ipants may alternatively attend the public
hearing by telephone.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish to
present oral comments at the hearing must
submit an outline of the topics to be dis-
cussed and the time to be devoted to each
topic by March 4, 2024. A period of 10
minutes will be allotted to each person for
making comments. An agenda showing
the scheduling of the speakers will be pre-
pared after the deadline for receiving out-
lines has passed. Copies of the agenda will
be available free of charge at the hearing.
If no outline of the topics to be discussed
at the hearing is received by March 4,
2024, the public hearing will be cancelled.

Bulletin No. 2024–14 781 April 1, 2024
If the public hearing is cancelled, a notice
of cancellation of the public hearing will
be published in the Federal Register.
Individuals who want to testify in
person at the public hearing must send
an email to publichearings@irs.gov to
have your name added to the building
access list. The subject line of the email
must contain the regulation number REG-
117631-23 and the language TESTIFY in
Person. For example, the subject line may
say: Request to TESTIFY in Person at
Hearing for REG-117631-23.
Individuals who want to testify by
telephone at the public hearing must send
an email to publichearings@irs.gov to
receive the telephone number and access
code for the hearing. The subject line
of the email must contain the regulation
number REG-117631-23 and the language
TESTIFY Telephonically. For example,
the subject line may say: Request to TES-
TIFY Telephonically at Hearing for REG-
117631-23.
Individuals who want to attend the pub-
lic hearing in person without testifying must
also send an email to publichearings@irs.
gov to have your name added to the build-
ing access list. The subject line of the email
must contain the regulation number REG-
117631-23 and the language ATTEND
in Person. For example, the subject line
may say: Request to ATTEND Hearing in
Person for REG-117631-23. Requests to
attend the public hearing must be received
by 5:00 p.m. ET on March 18, 2024.
Hearings will be made accessible to
people with disabilities. To request special
assistance during a hearing please contact
the Publications and Regulations Branch
of the Office of Associate Chief Counsel
(Procedure and Administration) by send-
ing an email to publichearings@irs.gov
(preferred) or by telephone at (202) 317-
6901 (not a toll-free number) by at least
March 18, 2024.
Statement of Availability of IRS
Documents
IRS guidance cited in this preamble is
published in the Internal Revenue Bulletin
and is available from the Superintendent
of Documents, U.S. Government Publish-
ing Office, Washington, DC 20402, or by
visiting the IRS website at https://www.
irs.gov.
Drafting Information
The principal author of these pro-
posed regulations is the Office of the
Associate Chief Counsel (Passthroughs
and Special Industries). However, other
personnel from the Treasury Depart-
ment, the DOE, the EPA, and the IRS
participated in the development of the
proposed regulations.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 1 as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding entries
in numerical order for §§1.45V-1 through
1.45V-6 and 1.48-15 to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Section 1.45V-1 also issued under 26
U.S.C. 45V(f).
Section 1.45V-2 also issued under 26
U.S.C. 45V(f).
Section 1.45V-3 also issued under 26
U.S.C. 45V(e) and (f).
Section 1.45V-4 also issued under 26
U.S.C. 45V(f).
Section 1.45V-5 also issued under 26
U.S.C. 45V(f).
Section 1.45V-6 also issued under 26
U.S.C. 45V(c) and (d).
* * * * *
Section 1.48-15 also issued under 26
U.S.C. 48(a)(15).
* * * * *
Par. 2. Sections 1.45V-0 through
1.45V-6 are added to read as follows:
Sec.
* * * * *
1.45V-0 Table of contents.
1.45V-1 Credit for production of quali-
fied clean hydrogen.
1.45V-2 Special rules.
1.45V-3 [Reserved]
1.45V-4 Procedures for determining
lifecycle greenhouse gas emissions rates
for qualified clean hydrogen.
1.45V-5 Procedures for verification of
qualified clean hydrogen production
and sale or use.
1.45V-6 Rules for determining the
placed in service date for an existing
facility that is modified to produce qual-
ified clean hydrogen.
* * * * *
§1.45V-0 Table of contents.
This section lists the captions con-
tained in §§1.45V-1 through 1.45V-6.
§1.45V-1 Credit for production of
qualified clean hydrogen.
(a) Overview.
(1) In general.
(2) Applicable amount.
(i) In general.
(ii) Inflation adjustment.
(3) Applicable percentage.
(4) Claim.
(5) Code.
(6) DOE.
(7) Facility.
(i) In general.
(ii) Treatment of certain indirect pro-
duction and post-production equipment.
(iii) Multipurpose components.
(iv) Example.
(8) Lifecycle GHG emissions.
(i) In general.
(ii) Most recent GREET model.
(iii) Emissions through the point of
production (well-to-gate).
(9) Qualified clean hydrogen.
(i) In general.
(ii) For sale or use.
(10) Qualified clean hydrogen produc-
tion facility.
(11) Secretary.
(12) Section 45V credit.
(13) Section 45V regulations.
(b) Amount of credit.
(1) In general.
(2) Producer of qualified clean hydro-
gen.
(3) Increased credit amount for quali-
fied clean hydrogen production facilities.
(c) Determination of credit.
(d) Applicability date.

April 1, 2024 782 Bulletin No. 2024–14
§1.45V-2 Special rules.
(a) Coordination with credit for carbon
oxide sequestration.
(b) Anti-abuse rule.
(1) In general.
(2) Example.
(i) Facts.
(ii) Analysis.
(c) Recordkeeping.
(d) Applicability date.
§1.45V-3 [Reserved]
§1.45V-4 Procedures for determining
lifecycle greenhouse gas emissions rates
for qualified clean hydrogen.
(a) In general.
(b) Use of the most recent GREET
model.
(c) Provisional emissions rate (PER).
(1) In general.
(2) Rate not determined.
(i) In general.
(ii) Subsequent inclusion in 45VH2-
GREET.
(3) Process for filing a PER petition.
(4) PER determination.
(5) Department of Energy emissions
value request process.
(6) Effect of PER.
(d) Use of Energy Attribute Certificates
(EACs).
(1) In general.
(2) Definitions.
(i) Commercial operations date.
(ii) Energy attribute certificate.
(iii) Eligible EAC.
(iv) Qualifying EAC.
(v) Qualified EAC registry or account-
ing system.
(vi) Region.
(3) Qualifying EAC requirements.
(i) Incrementality.
(ii) Temporal matching.
(iii) Deliverability.
(e) Applicability date.
§1.45V-5 Procedures for verification of
qualified clean hydrogen production
and sale or use.
(a) In general.
(b) Requirements for verification reports.
(c) Requirements for the production
attestation.
(d) Requirements for the sale or use
attestation.
(1) In general.
(2) Verifiable use.
(e) Requirements for the conflict attes-
tation.
(1) In general.
(2) Special rule for transfer elections.
(f) Requirements for the qualified ver-
ifier statement.
(g) General information on the taxpay-
er’s hydrogen production facility.
(h) Qualified verifier.
(i) Unrelated party.
(j) Requirements for taxpayers claim-
ing both the section 45V credit and the
section 45 credit or the section 45U
credit.
(k) Timely verification report.
(l) Applicability date.
§1.45V-6 Rules for determining the
placed in service date for an existing
facility that is modified to produce
qualified clean hydrogen.
(a) Modification of an existing facility.
(1) In general.
(2) Modification requirements.
(b) Retrofit of an existing facility
(80/20 Rule).
(c) Examples.
(1) Example 1: Modification of an
existing facility.
(i) Facts.
(ii) Analysis.
(2) Example 2: Modification of an
existing facility; coordination with the
section 45Q credit previously allowed.
(i) Facts.
(ii) Analysis.
(3) Example 3: Modification of an
existing facility and coordination with
section 45Q credit not previously allowed.
(i) Facts.
(ii) Analysis.
(4) Example 4: Retrofit of an existing
facility (80/20 Rule).
(i) Facts.
(ii) Analysis.
(5) Example 5: Retrofit of an exist-
ing facility (80/20 Rule) and coordina-
tion with section 45Q credit previously
allowed.
(i) Facts.
(ii) Analysis.
(d) Applicability date.
§1.45V-1 Credit for production of clean
hydrogen.
(a) Overview—(1) In general. For pur-
poses of section 38 of the Code, the sec-
tion 45V credit is determined under sec-
tion 45V of the Code, so much of sections
6417 and 6418 of the Code that relate to
section 45V, and the section 45V regula-
tions (as defined in paragraph (a)(13) of
this section). Paragraphs (a)(2) through
(13) of this section provide generally
applicable definitions of terms that, unless
otherwise provided, apply for purposes
of section 45V, the section 45V regula-
tions, and any provision of the Code or
this chapter that expressly refers to any
provision of section 45V or the section
45V regulations. Paragraph (b) of this
section provides rules for determining the
amount of the section 45V credit for any
taxable year, which generally depends on
the kilograms of qualified clean hydrogen
produced during the taxable year and the
emissions intensity of the process used
to produce such hydrogen, as well as
whether certain requirements, including
the requirements under §1.45V-3, are sat-
isfied. Paragraph (c) of this section pro-
vides rules regarding the taxable year for
which a section 45V credit is determined.
See §1.45V-2 for special rules, including
rules to coordinate the section 45V credit
with the credit for carbon oxide sequestra-
tion determined under section 45Q of the
Code, an anti-abuse rule, and recordkeep-
ing requirements. See §1.45V-3 for rules
relating to the increased credit amount for
satisfying the prevailing wage and appren-
ticeship requirements. See §1.45V-4 for
procedures to determine lifecycle green-
house gas (GHG) emissions rates for qual-
ified clean hydrogen and §1.45V-5 for pro-
cedures for verification of qualified clean
hydrogen production and sale or use. See
§1.45V-6 for rules to determine the placed
in service date for an existing facility that
is modified or retrofitted to produce quali-
fied clean hydrogen. See also §1.48-15 for
procedures to elect to treat any qualified
property that is part of a specified clean
hydrogen production facility as energy
property for purposes of section 48 of the
Code.
(2) Applicable amount—(i) In general.
The term applicable amount means the
amount equal to the applicable percentage

Bulletin No. 2024–14 783 April 1, 2024
of $0.60, provided that if any such amount
is not a multiple of 0.1 cent, such amount
is rounded to the nearest multiple of 0.1
cent.
(ii) Inflation adjustment. The $0.60
amount specified in section 45V(b)(1)
and paragraph (a)(2)(i) of this section is
adjusted annually by multiplying such
amount by the inflation adjustment fac-
tor (as determined under section 45(e)(2)
of the Code, determined by substituting
“2022” for “1992” in section 45(e)(2)(B))
for the calendar year in which the qualified
clean hydrogen is produced, provided that
if any such amount as adjusted is not a mul-
tiple of 0.1 cent, such amount is rounded to
the nearest multiple of 0.1 cent.
(3) Applicable percentage. The term
applicable percentage means the per-
centage set forth in paragraphs (a)(3)(i)
through (iv) of this section, which is deter-
mined according to the lifecycle GHG
emissions rate of the process by which the
qualified clean hydrogen is produced:
(i) In the case of any qualified clean
hydrogen that is produced through a pro-
cess that results in a lifecycle GHG emis-
sions rate of not greater than 4 kilograms
of carbon dioxide equivalent (CO2e) per
kilogram of hydrogen, and not less than
2.5 kilograms of CO2e per kilogram of
hydrogen, the applicable percentage is 20
percent.
(ii) In the case of any qualified clean
hydrogen that is produced through a pro-
cess that results in a lifecycle GHG emis-
sions rate of less than 2.5 kilograms of
CO2e per kilogram of hydrogen, and not
less than 1.5 kilograms of CO2e per kilo-
gram of hydrogen, the applicable percent-
age is 25 percent.
(iii) In the case of any qualified clean
hydrogen that is produced through a pro-
cess that results in a lifecycle GHG emis-
sions rate of less than 1.5 kilograms of
CO2e per kilogram of hydrogen, and not
less than 0.45 kilograms of CO2e per kilo-
gram of hydrogen, the applicable percent-
age is 33.4 percent.
(iv) In the case of any qualified clean
hydrogen that is produced through a pro-
cess that results in a lifecycle GHG emis-
sions rate of less than 0.45 kilograms
of CO2e per kilogram of hydrogen, the
applicable percentage is 100 percent.
(4) Claim. With respect to the sec-
tion 45V credit determined for qualified
clean hydrogen produced by the taxpayer
at a qualified clean hydrogen production
facility, the term claim means the filing
of a completed Form 7210, Clean Hydro-
gen Production Credit, or any succes-
sor form(s), with the taxpayer’s Federal
income tax return or annual information
return for the taxable year in which the
credit is determined, and includes the
making of an election under section 6417
or 6418 and the regulations in this chapter
under section 6417 or 6418, as applicable,
with respect to such section 45V credit on
the applicable entity’s or eligible taxpay-
er’s timely filed (including extensions)
Federal income tax return or annual infor-
mation return.
(5) Code. The term Code means the
Internal Revenue Code.
(6) DOE. The term DOE means the
U.S. Department of Energy.
(7) Facility—(i) In general. For pur-
poses of the definition of qualified clean
hydrogen production facility provided at
section 45V(c)(3) and paragraph (a)(10)
of this section, unless otherwise specified,
the term facility means a single produc-
tion line that is used to produce qualified
clean hydrogen. A single production line
includes all components of property that
function interdependently to produce
qualified clean hydrogen. Components
of property function interdependently to
produce qualified clean hydrogen if the
placing in service of each component is
dependent upon the placing in service of
each of the other components to produce
qualified clean hydrogen.
(ii) Treatment of certain indirect pro-
duction and post-production equipment.
The term facility does not include—
(A) Equipment that is used to condition
or transport hydrogen beyond the point of
production; or
(B) Notwithstanding paragraph (a)(7)
(iii) of this section, electricity production
equipment used to power the hydrogen
production process, including any carbon
capture equipment associated with the
electricity production process.
(iii) Multipurpose components. Com-
ponents that have a purpose in addition to
the production of qualified clean hydrogen
may be part of a facility if such compo-
nents function interdependently with other
components to produce qualified clean
hydrogen.
(iv) Example. The following example
illustrates the definition of facility pro-
vided in this paragraph (a)(7). A hydrogen
production facility is equipped with carbon
capture equipment (as defined in §1.45Q-
2(c)), as distinguished from the carbon
capture equipment described in paragraph
(a)(7)(ii)(B) of this section. One purpose
of this equipment is the capture of carbon
oxides. The facility produces hydrogen
through a process that results in a lifecy-
cle GHG emissions rate falling within the
range specified in section 45V(b)(2)(C).
Without the carbon capture equipment,
the facility could not produce hydrogen
through a process that results in a lifecy-
cle GHG emissions rate falling within the
range specified in section 45V(b)(2)(C).
Because the carbon capture equipment
is functionally interdependent with other
components of property to produce qual-
ified clean hydrogen within the meaning
of paragraph (a)(9)(i) of this section, the
carbon capture equipment is part of the
facility for purposes of section 45V(c)
(3) and the section 45V regulations, along
with all other components of property that
function interdependently with the carbon
capture equipment to produce qualified
clean hydrogen.
(8) Lifecycle GHG emissions—(i) In
general. Subject to section 45V(c)(1)(B)
and paragraphs (a)(8)(ii) and (iii) of this
section, and unless otherwise specified
in the section 45V regulations, the term
lifecycle GHG emissions has the meaning
given the term lifecycle greenhouse gas
emissions by 42 U.S.C. 7545(o)(1)(H), as
in effect on August 16, 2022. For purposes
of section 45V, lifecycle GHG emissions
include emissions only through the point
of production (well-to-gate), as deter-
mined under the most recent Greenhouse
gases, Regulated Emissions, and Energy
use in Transportation model (GREET
model) developed by Argonne National
Laboratory, or a successor model.
(ii) Most recent GREET model. Unless
otherwise specified in the section 45V
regulations, for purposes of the section
45V credit, the term most recent GREET
model means the latest version of 45VH2-
GREET developed by Argonne National
Laboratory that is publicly available, as
provided in the instructions to the lat-
est version of Form 7210, Clean Hydro-
gen Production Credit, or any successor

April 1, 2024 784 Bulletin No. 2024–14
form(s), on the first day of the taxable
year during which the qualified clean
hydrogen for which the taxpayer is claim-
ing the section 45V credit was produced.
If a version of 45VH2-GREET becomes
publicly available after the first day of the
taxable year of production (but still within
such taxable year), then the taxpayer may,
in its discretion, treat such later version
of 45VH2-GREET as the most recent
GREET model.
(iii) Emissions through the point of pro-
duction (well-to-gate). The term emissions
through the point of production (well-to-
gate) means the aggregate lifecycle GHG
emissions related to hydrogen produced at
a hydrogen production facility during the
taxable year through the point of produc-
tion. It includes emissions associated with
feedstock growth, gathering, extraction,
processing, and delivery to a hydrogen
production facility. It also includes the
emissions associated with the hydrogen
production process, inclusive of the elec-
tricity used by the hydrogen production
facility and any capture and sequestration
of carbon dioxide generated by the hydro-
gen production facility.
(9) Qualified clean hydrogen—(i) In
general. The term qualified clean hydro-
gen means hydrogen that is produced
through a process that results in a life-
cycle GHG emissions rate of not greater
than 4 kilograms of CO2e per kilogram
of hydrogen. Such term does not include
any hydrogen unless the production and
sale or use of such hydrogen is verified
by an unrelated party in accordance
with, and satisfying the requirements
of, §1.45V-5, and such hydrogen is pro-
duced—
(A) In the United States (as defined in
section 638(1) of the Code) or a U.S. ter-
ritory, which, for purposes of section 45V
and the section 45V regulations, has the
meaning of the term possession provided
in section 638(2) of the Code;
(B) In the ordinary course of a trade or
business of the taxpayer; and
(C) For sale or use.
(ii) For sale or use. The term for sale
or use means for the primary purpose of
making ready and available for sale or
use. Storage of hydrogen following pro-
duction does not disqualify such hydrogen
from being considered produced for sale
or use.
(10) Qualified clean hydrogen pro-
duction facility. The term qualified clean
hydrogen production facility means a
facility—
(i) Owned by the taxpayer;
(ii) That produces qualified clean
hydrogen; and
(iii) The construction of which begins
before January 1, 2033.
(11) Secretary. The term Secretary
means the Secretary of the Treasury or her
delegate.
(12) Section 45V credit. The term sec-
tion 45V credit means the credit for pro-
duction of clean hydrogen determined
under section 45V of the Code, so much
of sections 6417 and 6418 of the Code that
relate to section 45V, and the section 45V
regulations.
(13) Section 45V regulations. The term
section 45V regulations means this sec-
tion, §§1.45V-2 through 1.45V-6, and the
regulations in this chapter under sections
6417 and 6418 of the Code that relate to
the section 45V credit.
(b) Amount of credit—(1) In general.
The amount of the section 45V credit
determined under section 45V(a) and
the section 45V regulations for any tax
-
able year is the product of the kilograms
of qualified clean hydrogen produced by
the taxpayer during such taxable year at a
qualified clean hydrogen production facil-
ity during the 10-year period beginning on
the date such facility was originally placed
in service, multiplied by the applicable
amount with respect to such hydrogen.
(2) Producer of qualified clean hydro-
gen. The term taxpayer means the tax-
payer that owns the qualified clean hydro-
gen production facility at the time of
the facility’s production of hydrogen for
which the section 45V credit is claimed,
regardless of whether such taxpayer is
treated as a producer under section 263A
of the Code or under any other provision
of law with respect to such hydrogen.
(3) Increased credit amount for quali-
fied clean hydrogen production facilities.
Pursuant to section 45V(e)(1), §1.45V-3
provides rules that permit the amount of
the section 45V credit determined under
section 45V(a) and paragraph (b)(1) of
this section to be multiplied by five if
certain requirements related to prevailing
wages and apprenticeships are met. See
§1.45V-3(a).
(c) Determination of credit. Subject to
any applicable sections of the Code that
may limit the section 45V credit amount,
the section 45V credit for any taxable
year of a taxpayer who produces qualified
clean hydrogen and claims such credit is
determined with respect to the qualified
clean hydrogen produced by the taxpayer
during that taxable year, regardless of
whether the verification of the production
and sale or use of that hydrogen occurs in
a later taxable year. Although the section
45V credit is determined with respect to
the taxable year in which the qualified
clean hydrogen is produced, a taxpayer
is not eligible to claim the section 45V
credit with respect to the production of
that hydrogen until all relevant verifica-
tion requirements, and the verification
itself, have been completed for both the
production of the hydrogen and the sale
or use of that hydrogen. Accordingly,
although the sale or use of the hydrogen
and the verification thereof may occur
in a taxable year after the taxable year
of production, the section 45V credit is
properly claimed with respect to the tax-
able year of production and is subject to
the general period of limitations for filing
a claim for credit or refund under section
6511 and other applicable provisions of
the Code.
(d) Applicability date. This section
applies to taxable years beginning after
December 26, 2023.
§1.45V-2 Special rules.
(a) Coordination with credit for carbon
oxide sequestration. In the case of any
qualified clean hydrogen produced at a
qualified clean hydrogen production facil-
ity that includes carbon capture equipment
for which a credit is allowed to any tax-
payer under section 45Q of the Code (sec-
tion 45Q credit) for the taxable year or any
prior taxable year, no section 45V credit
is allowed under section 45V of the Code.
However, if the 80/20 Rule provided in
§1.45Q-2(g)(5) is satisfied with respect
to such carbon capture equipment, and no
new section 45Q credit has been allowed
to any taxpayer for such carbon capture
equipment, then the unit of carbon capture
equipment (as defined in §1.45Q-2(c)(3))
for which the 80/20 Rule is satisfied will
not be treated as carbon capture equip-

Bulletin No. 2024–14 785 April 1, 2024
ment for which a section 45Q credit was
allowed to any taxpayer for any prior tax-
able year for purposes of section 45V(d)
(2) and this paragraph (a).
(b) Anti-abuse rule—(1) In general.
The rules of section 45V of the Code (and
so much of sections 6417 and 6418 of the
Code related to the section 45V credit) and
the section 45V regulations (as defined
in §1.45V-1(a)(13)) must be applied in a
manner consistent with the purposes of
section 45V and the section 45V regula-
tions. A purpose of section 45V and the
regulations under section 45V (and so
much of sections 6417 and 6418 and the
regulations thereunder related to the sec-
tion 45V credit) is to provide taxpayers an
incentive to produce qualified clean hydro-
gen for a productive use. Accordingly, the
section 45V credit is not allowable if the
primary purpose of the production and
sale or use of qualified clean hydrogen is
to obtain the benefit of the section 45V
credit in a manner that is wasteful, such
as the production of qualified clean hydro-
gen that the taxpayer knows or has reason
to know will be vented, flared, or used
to produce hydrogen. A determination of
whether the production and sale or use of
qualified clean hydrogen is inconsistent
with the purposes of section 45V and the
section 45V regulations is based on all
facts and circumstances.
(2) Example—(i) Facts. Taxpayer is
a C corporation that has a calendar year
taxable year. In 2031, Taxpayer places
Facility in service in the United States.
Facility produces qualified clean hydro-
gen that qualifies for the highest appli-
cable amount of the section 45V credit
at a production cost of $2 per kilogram
of hydrogen (assuming Taxpayer also
claims the increased credit under section
45V(e), without taking into account any
future inflation adjustment, the amount
of the section 45V credit would be $3 per
kilogram of qualified clean hydrogen).
The cost of producing each kilogram of
qualified clean hydrogen is less than the
amount of the section 45V credit that
would be available if Taxpayer quali-
fied for the section 45V credit. In 2031,
Taxpayer sells all the qualified clean
hydrogen produced at Facility that year
to Customer at a price that is well below
the current market price. Taxpayer knows
or reasonably expects that Customer
will vent or flare a portion of the qual-
ified clean hydrogen it purchased from
Taxpayer. In addition, Taxpayer intends
to obtain the benefit of the section 45V
credit by claiming such credit itself or
monetizing such credit through an elec-
tion under section 6417 or 6418 of the
Code.
(ii) Analysis. Based on all the facts and
circumstances, the primary purpose of
Taxpayer’s production and sale of quali-
fied clean hydrogen is to obtain the ben-
efit of the section 45V credit in a manner
that is wasteful. Taxpayer is not eligible
for the section 45V credit with respect to
the qualified clean hydrogen that Taxpayer
produced and sold in 2031 to Customer
that is subsequently vented or flared by
Customer.
(c) Recordkeeping. Consistent with
section 6001 of the Code, a taxpayer
claiming the section 45V credit for qual-
ified clean hydrogen produced at a qual-
ified clean hydrogen production facil-
ity must maintain and preserve records
sufficient to establish the amount of the
section 45V credit claimed by the tax-
payer. At a minimum, those records must
include records to substantiate the infor-
mation required to be included in the ver-
ification report under §1.45V-5, records
establishing that the facility meets the
definition of a qualified clean hydrogen
production facility under section 45V(c)
(3) and §1.45V-1(a)(10), records of past
credit claims under section 45Q by any
taxpayer with respect to carbon capture
equipment included at the facility, and
records establishing the date the qualified
clean hydrogen production facility was
placed in service. If the requirements
under section 45V(e) and §1.45V-3(b)
for the increased credit amount were sat-
isfied, then the taxpayer must also main-
tain records in accordance with §1.45-12.
Taxpayers must also retain all raw data
used for submission of a request for an
emissions value to the DOE for at least
six years after the due date (including
extensions) for filing the Federal income
tax return or information return to which
the provisional emissions rate (PER) (as
defined in §1.45V-4(c)(1)) petition is
ultimately attached.
(d) Applicability date. This section
applies to taxable years beginning after
December 26, 2023.
§1.45V-3 [Reserved]
§1.45V-4 Procedures for determining
lifecycle greenhouse gas emissions rates
for qualified clean hydrogen.
(a) In general. The amount of the sec-
tion 45V credit is determined under sec-
tion 45V(a) of the Code and §1.45V-1(b)
according to the lifecycle GHG emissions
rate of all hydrogen produced at a hydro-
gen production facility during the taxable
year. The lifecycle GHG emissions rate
of such hydrogen is determined under the
most recent GREET model. In the case of
any hydrogen for which a lifecycle GHG
emissions rate has not been determined
under the most recent GREET model for
purposes of section 45V, a taxpayer pro-
ducing such hydrogen may file a petition
for a provisional emissions rate (PER)
with the IRS for the Secretary’s determi-
nation of the lifecycle GHG emissions
rate with respect to such hydrogen.
(b) Use of the most recent GREET
model. For each taxable year during the
period described in section 45V(a)(1), a
taxpayer claiming the section 45V credit
determines the lifecycle GHG emissions
rate of hydrogen produced at a hydrogen
production facility under the most recent
GREET model separately for each hydro-
gen production facility the taxpayer owns.
This determination is made following the
close of each such taxable year and must
include all hydrogen production during
the taxable year. In using the most recent
GREET model to calculate the lifecycle
GHG emissions rate for purposes of deter-
mining the amount of the section 45V
credit under section 45V(a) and §1.45V-
1(b), the taxpayer must accurately enter
all information about its facility requested
within the interface of 45VH2-GREET
(as described in §1.45V-1(a)(8)(ii)). Infor-
mation regarding where taxpayers may
access 45VH2-GREET and accompany-
ing documentation will be included in
the instructions to the Form 7210, Clean
Hydrogen Production Credit, or any suc-
cessor form(s).
(c) Provisional emissions rate (PER)—
(1) In general. For purposes of section
45V(c)(2)(C) and paragraph (a) of this
section, the term provisional emissions
rate or PER means the lifecycle GHG
emissions rate of the process by which

April 1, 2024 786 Bulletin No. 2024–14
qualified clean hydrogen is produced by
the taxpayer at a hydrogen production
facility as determined by the Secretary
under this paragraph (c).
(2) Rate not determined—(i) In gen-
eral. For purposes of section 45V(c)(2)
(C), a taxpayer may not file a petition for
a PER unless a lifecycle GHG emissions
rate has not been determined under the
most recent GREET model with respect
to hydrogen produced by the taxpayer
at a hydrogen production facility. A life-
cycle GHG emissions rate has not been
determined under the most recent GREET
model with respect to hydrogen produced
by the taxpayer at a hydrogen produc-
tion facility if either the feedstock used
by such facility or the facility’s hydrogen
production technology is not included in
the most recent GREET model. A facili-
ty’s hydrogen production pathway is not
included in the most recent GREET model
if the feedstock used by such facility or
the facility’s hydrogen production tech-
nology is not included in the most recent
GREET model. If a taxpayer’s request for
an emissions value pursuant to paragraph
(c)(5) of this section with respect to the
hydrogen produced by the taxpayer at a
hydrogen production facility is pending
at the time such facility’s hydrogen pro-
duction pathway becomes included in an
updated version of 45VH2-GREET, the
taxpayer’s request for an emissions value
will be automatically denied. In such case,
the taxpayer must determine the lifecycle
GHG emissions rate with respect to such
hydrogen under paragraph (c)(2)(ii) of
this section.
(ii) Subsequent inclusion in 45VH2-
GREET. Notwithstanding the definition of
the most recent GREET model provided
at §1.45V-1(a)(8)(ii), for the taxable year
in which the hydrogen production facili-
ty’s hydrogen production pathway is first
included in an updated version of 45VH2-
GREET, the updated version of 45VH2-
GREET will be considered the most
recent GREET model with respect to the
hydrogen produced by the taxpayer at the
hydrogen production facility during such
taxable year, and for purposes of section
45V(c)(2)(C), a lifecycle GHG emissions
rate for such hydrogen will be considered
to have been determined.
(3) Process for filing a PER petition.
To file a PER petition with the Secre-
tary, a taxpayer must submit a PER peti-
tion attached to the taxpayer’s Federal
income tax return for the first taxable
year of hydrogen production ending
within the 10-year period described in
section 45V(a)(1) for which the taxpayer
claims the section 45V credit for hydro-
gen to which the PER petition relates and
for which a lifecycle GHG emissions rate
has not been determined, as defined under
paragraph (c)(2)(i) of this section. A PER
petition must contain an emissions value
obtained from the DOE setting forth the
DOE’s analytical assessment of the life-
cycle GHG emissions associated with the
facility’s hydrogen production pathway,
which must be consistent with the life-
cycle GHG emissions framework pro-
vided in the section 45V regulations, and
a copy of the taxpayer’s request to the
DOE for an emissions value, including
any information provided by the taxpayer
to the DOE pursuant to the emissions
value request process provided in para-
graph (c)(5) of this section. If the tax-
payer obtained more than one emissions
value from the DOE, the PER petition
must contain the emissions value setting
forth the lifecycle GHG emissions rate
of the hydrogen for which the section
45V credit is claimed on the Form 7210,
Clean Hydrogen Production Credit, or
any successor form(s), to which the PER
petition is attached.
(4) PER determination. Upon the
IRS’s acceptance of the taxpayer’s Fed-
eral income tax return containing a PER
petition, the emissions value of the hydro-
gen specified on such petition will be
deemed accepted. A taxpayer may rely
upon an emissions value provided by
the DOE for purposes of calculating and
claiming a section 45V credit, provided
that any information, representations, or
other data provided to the DOE in support
of the request for an emissions value are
accurate. The IRS’s deemed acceptance
of such emissions value is the Secretary’s
determination of the PER. However, the
production and sale or use of such hydro
-
gen must be verified by an unrelated
party under section 45V(c)(2)(B)(ii) and
§1.45V-5. Such verification and any infor-
mation, representations, or other data pro-
vided to the DOE in support of the request
for an emissions value are subject to later
examination by the IRS.
(5) Department of Energy (DOE)
emissions value request process. An
applicant that submits a request for an
emissions value must follow the proce-
dures specified by the DOE to request
and obtain such emissions value. Emis-
sions values will be evaluated using the
same well-to-gate system boundary that
is employed in 45VH2-GREET. Addi-
tionally, if applicable, background data
parameters in 45VH2-GREET will also
be treated as background data (with fixed
values that an applicant cannot change)
in the emissions value request process.
Treatment of EACs and other proposals
outlined in the section 45V regulations
will be consistently applied in the emis-
sions value request process. An applicant
may request an emissions value from the
DOE only after a front-end engineering
and design (FEED) study or similar indi-
cation of project maturity, as determined
by the DOE, such as project specification
and cost estimation sufficient to inform
a final investment decision has been
completed for the hydrogen production
facility. The DOE may decline to review
applications that are not responsive,
including those applications that use a
hydrogen production technology and
feedstock already in 45VH2-GREET or
applications that are incomplete. Guid-
ance and procedures for applicants to
request and obtain an emissions value
from the DOE will be published by the
DOE, including a process for, under
limited circumstances, a revision to the
DOE’s initial analytical assessment of an
emissions value on the basis of revised
technical information or facility design
and operation.
(6) Effect of PER. A taxpayer may use
a PER determined by the Secretary to
calculate the amount of the section 45V
credit under section 45V(a) and §1.45V-
1(b) with respect to qualified clean hydro-
gen produced at a qualified clean hydro-
gen production facility, provided all other
requirements of section 45V are met, until
the lifecycle GHG emissions rate of such
hydrogen has been determined (for pur-
poses of section 45V(c)(2)(C)) under the
most recent GREET model. The Secre-
tary’s PER determination is not an exam-
ination or inspection of books of account
for purposes of section 7605(b) of the
Code and does not preclude or impede

Bulletin No. 2024–14 787 April 1, 2024
the IRS (under section 7605(b) or any
administrative provisions adopted by the
IRS) from later examining a return or
inspecting books or records with respect
to any taxable year for which the section
45V credit is claimed. For example, the
verification report submitted under sec-
tion 45V(c)(2)(B)(ii) and §1.45V-5 and
any information, representations, or other
data provided to the DOE in support of
the request for an emissions value are still
subject to examination. Further, a PER
determination does not signify that the
IRS has determined that the requirements
of section 45V have been satisfied for any
taxable year.
(d) Use of energy attribute certificates
(EACs)—(1) In general. For purposes of
the section 45V credit, if a taxpayer deter-
mines a lifecycle GHG emissions rate for
hydrogen produced at a hydrogen produc-
tion facility using the most recent GREET
model or the Secretary determines a PER
for hydrogen produced at a hydrogen pro-
duction facility subject to a PER petition,
then the taxpayer may treat such hydrogen
production facility’s use of electricity as
being from a specific electricity gener-
ating facility rather than being from the
regional electricity grid (as represented
in 45VH2-GREET) only if the taxpayer
acquires and retires qualifying EACs (as
defined in paragraph (d)(2)(iv) of this sec-
tion) for each unit of electricity that the
taxpayer claims from such source. For
example, one megawatt-hour of electric-
ity used to produce hydrogen would need
to be matched with one megawatt-hour of
qualifying EACs. Further, to satisfy this
requirement, a taxpayer’s acquisition and
retirement of qualifying EACs must also
be recorded in a qualified EAC registry
or accounting system (as defined in para-
graph (d)(2)(v) of this section) so that the
acquisition and retirement of such EACs
may be verified by a qualified verifier (as
defined in §1.45V-5(h)). The requirements
of this paragraph (d)(1) apply regardless
of whether the electricity generating facil-
ity is grid connected, directly connected,
or co-located with the hydrogen produc-
tion facility.
(2) Definitions. For purposes of this
section—
(i) Commercial operations date. The
term commercial operations date or COD
means the date on which a facility that
generates electricity begins commercial
operations.
(ii) Energy attribute certificate. The
term energy attribute certificate (EAC)
means a tradeable contractual instrument,
issued through a qualified EAC registry
or accounting system (as defined in para-
graph (d)(2)(v) of this section), that rep-
resents the energy attributes of a specific
unit of energy produced. An EAC may be
traded with or separately from the under-
lying energy it represents. An EAC can be
retired by or on behalf of its owner, which
is the party that has the right to claim
the underlying attributes represented by
an EAC. Renewable energy certificates
(RECs) and other similar energy certifi-
cates issued through a registry or account-
ing system are forms of EACs.
(iii) Eligible EAC. The term eligible
EAC means an EAC that, with respect to
the electricity to which the EAC relates,
provides, at a minimum, the information
described in paragraphs (d)(2)(iii)(A)
through (F) of this section—
(A) A description of the facility, includ-
ing the technology and feedstock used to
generate the electricity;
(B) The amount and units of electricity;
(C) The COD of the facility that gener-
ated the electricity;
(D) For electricity that is generated
before January 1, 2028, the calendar year
in which such electricity was generated;
(E) For electricity that is generated
after December 31, 2027, the date and
hour in which such electricity was gener-
ated; and
(F) The project identification number
or assigned identifier.
(iv) Qualifying EAC. The term qual-
ifying EAC means an eligible EAC that
meets the requirements of paragraph (d)
(3) of this section and for which the sat-
isfaction of those requirements has been
verified by a qualified verifier (as defined
in §1.45V-5(h)).
(v) Qualified EAC registry or account-
ing system. The term qualified EAC regis-
try or accounting system means a tracking
system that—
(A) Assigns a unique identification
number to each EAC tracked by such sys-
tem;
(B) Enables verification that only one
EAC is associated with each unit of elec-
tricity;
(C) Verifies that each EAC is claimed
and retired only once;
(D) Identifies the owner of each EAC;
and
(E) Provides a publicly accessible view
(for example, through an application pro-
gramming interface) of all currently reg-
istered generators in the tracking system
to prevent the duplicative registration of
generators.
(vi) Region. The term region means a
region derived from the National Trans-
mission Needs Study that was released
by the DOE on October 30, 2023. Alaska,
Hawaii, and each U.S. territory will be
treated as separate regions.
(3) Qualifying EAC requirements.
An eligible EAC meets the requirements
of this paragraph (d)(3) if it meets the
requirements of paragraphs (d)(3)(i)
through (iii) of this section.
(i) Incrementality. An EAC meets the
requirements of this paragraph (d)(3)(i) if
it meets the requirements of paragraph (d)
(3)(i)(A) or (B) of this section. Paragraph
(d)(3)(i)(C) of this section provides an
example that illustrates the application of
paragraph (d)(3)(i)(B) of this section.
(A) An EAC meets the requirements
of this paragraph (d)(3)(i)(A) if the elec-
tricity generation facility that produced
the unit of electricity to which the EAC
relates has a COD that is no more than 36
months before the hydrogen production
facility for which the EAC is retired was
placed in service.
(B) Uprates. An EAC meets the
requirements of this paragraph (d)(3)(i)
(B) if the electricity represented by the
EAC is produced by an electricity gener-
ating facility that had an uprate no more
than 36 months before the hydrogen pro-
duction facility with respect to which the
EAC is retired was placed in service and
such electricity is part of such electricity
generating facility’s uprated production.
The term uprate means an increase in
an electricity generating facility’s rated
nameplate capacity (in nameplate mega-
watts). The term pre-uprate capacity
means the nameplate capacity of an elec-
tricity generating facility immediately
before an uprate. The term post-uprate
capacity means the nameplate capacity of
an electricity generating facility immedi-
ately after an uprate. The term incremental
generation capacity means the increase in

April 1, 2024 788 Bulletin No. 2024–14
an electricity generating facility’s rated
nameplate capacity from the pre-uprate
capacity to the post-uprate capacity. The
term uprated production rate means the
incremental generation capacity (in name-
plate megawatts) divided by the post-up-
rate capacity (in nameplate megawatts).
The term uprated production means the
uprated production rate of an electricity
generating facility multiplied by its total
generation output (in megawatt hours).
An uprated electricity generating facility’s
production must be prorated to each hour
of such facility’s generation by multiply-
ing the production for each hour or each
year, consistent with the requirements in
paragraph (d)(3)(ii) of this section, by the
uprated production rate to determine the
electricity to which the uprate relates.
(C) Example. Power Plant undergoes
an uprate that expands its rated name-
plate capacity from a pre-uprate capacity
of 10 megawatts (MW) to a post-uprate
capacity of 12 MW. After the uprate, its
generation output increases to a total of
40,000 MW hours for the year. Power
Plant’s incremental generation capacity
is 2 MW, its uprated production rate is
0.167 (2 MW divided by 12 MW), and
its total uprated production for the year
is 6,667 megawatt hours (MWh) (2 MW
divided by 12 MW multiplied by 40,000
MWh). Two-twelfths (0.167) of each hour
of Power Plant’s production may be con-
sidered uprated production.
(ii) Temporal matching—(A) In gen-
eral. An EAC meets the requirements of
this paragraph (d)(3)(ii) if the electricity
represented by the EAC is generated in
the same hour that the taxpayer’s hydro-
gen production facility uses electricity to
produce hydrogen.
(B) Transition rule. For EACs that rep-
resent electricity generated before January
1, 2028, the EAC will be considered gen-
erated in the same hour that the taxpayer’s
hydrogen production facility uses elec-
tricity to produce hydrogen as required in
paragraph (d)(3)(ii)(A) of this section if
the electricity represented by the EAC is
generated in the same calendar year that
the taxpayer’s hydrogen production facil-
ity uses electricity to produce hydrogen.
(iii) Deliverability. An EAC meets the
requirements of this paragraph (d)(3)(iii)
if the electricity represented by the EAC is
generated by a facility that is in the same
region (as defined in paragraph (d)(2)(vi)
of this section) as the hydrogen produc-
tion facility.
(e) Applicability date. This section
applies to taxable years beginning after
December 26, 2023.
§1.45V-5 Procedures for verification of
qualified clean hydrogen production
and sale or use.
(a) In general. For each qualified clean
hydrogen production facility for which
a taxpayer claims a section 45V credit,
a verification report must be attached to
the taxpayer’s Form 7210, Clean Hydro-
gen Production Credit, or any successor
form(s), for each qualified clean hydrogen
production facility and for each taxable
year in which the taxpayer claims the sec-
tion 45V credit.
(b) Requirements for verification
reports. A verification report specified in
paragraph (a) of this section must be pre-
pared by a qualified verifier under penal-
ties of perjury and must contain—
(1) An attestation from the qualified
verifier regarding the taxpayer’s produc-
tion of qualified clean hydrogen for sale
or use (production attestation);
(2) An attestation from the qualified
verifier regarding the amount of qualified
clean hydrogen sold or used (sale or use
attestation);
(3) An attestation from the qualified
verifier regarding conflicts of interest
(conflict attestation);
(4) Certain information regarding the
qualified verifier, including documenta-
tion of the qualified verifier’s qualifica-
tions (qualified verifier statement);
(5) Certain general information about
the taxpayer’s hydrogen production facil-
ity where the hydrogen production under-
going verification occurred; and
(6) Any documentation necessary to
substantiate the verification process given
the standards and best practices prescribed
by the qualified verifier’s accrediting body
and the circumstances of the taxpayer and
the taxpayer’s hydrogen production facil-
ity.
(c) Requirements for the production
attestation. The following requirements
apply to the production attestation:
(1) The production attestation must be
an attestation, made under penalties of per-
jury, that the qualified verifier performed a
verification sufficient to determine that the
operation, during the applicable taxable
year, of the hydrogen production facility
that produced the hydrogen for which
the section 45V credit is claimed, and
any energy attribute certificates (EACs)
applied pursuant to §1.45V-4(d) for the
purpose of accounting for such facility’s
emissions, are accurately reflected in—
(i) The amount of qualified clean
hydrogen produced by the taxpayer that is
claimed on the Form 7210, Clean Hydro-
gen Production Credit, or any successor
form(s), to which the verification report is
attached; and
(ii) Either—
(A) The data the taxpayer entered into
the most recent GREET model to deter-
mine the lifecycle GHG emissions rate
that is claimed on the Form 7210, Clean
Hydrogen Production Credit, or any suc-
cessor form(s), to which the verification
report is attached; or
(B) The data the taxpayer submitted
in the PER petition relating to the hydro-
gen for which the section 45V credit is
claimed, and which was provided to the
DOE in support of the taxpayer’s request
for the emissions value provided in the
PER petition.
(2) If the production attestation attests
to the information specified in paragraph
(c)(1)(ii)(B) of this section, then the pro-
duction attestation must also specify the
emissions value received from the DOE
that was calculated using such data,
expressed in kilograms of CO2e per kilo-
gram of hydrogen.
(3) The production attestation must
specify the lifecycle GHG emissions rate
(expressed in kilograms of CO2e per kilo-
gram of hydrogen) and the amount of
qualified clean hydrogen produced by the
taxpayer (expressed in kilograms), that are
claimed on the Form 7210, Clean Hydro-
gen Production Credit, or any successor
form(s), to which the verification report is
attached.
(d) Requirements for the sale or use
attestation—(1) In general. The sale or
use attestation must be an attestation,
made under penalties of perjury, that the
qualified verifier performed a verification
sufficient to determine that the amount of
qualified clean hydrogen that is specified
in the production attestation pursuant to

Bulletin No. 2024–14 789 April 1, 2024
paragraph (c)(1)(i) of this section, and
that is claimed on the Form 7210, Clean
Hydrogen Production Credit, or any suc-
cessor form(s), to which the verification
report is attached, has been sold or used
by a person who makes a verifiable use of
such hydrogen.
(2) Verifiable use. For purposes of
section 45V(c)(2)(B)(ii) of the Code and
the section 45V regulations (as defined
in §1.45V-1(a)(13)), a person’s verifiable
use of the hydrogen specified in paragraph
(d)(1) of this section can occur within or
outside the United States. A verifiable use
can be made by the taxpayer or a person
other than the taxpayer. For example, a
verifiable use includes a tolling arrange-
ment pursuant to which a service recipi-
ent provides raw materials or inputs, such
as water or electricity, to a toller (that is,
a third-party service provider that owns
a hydrogen production facility), and the
toller produces hydrogen for the service
recipient using the service recipient’s raw
materials or inputs in exchange for a fee,
use of the hydrogen by the service recipi-
ent would be a verifiable use. However, a
verifiable use does not include—
(i) Use of hydrogen to generate elec-
tricity that is then directly or indirectly
used in the production of more hydrogen;
or
(ii) Venting or flaring of hydrogen.
(e) Requirements for the conflict attes-
tation—(1) In general. The conflict attes-
tation must include attestations, made
under penalties of perjury, that—
(i) The qualified verifier has not
received a fee based to any extent on the
value of any section 45V credit that has
been or is expected to be claimed by any
taxpayer and no arrangement has been
made for such fee to be paid at some time
in the future;
(ii) The qualified verifier has not been a
party to any transaction in which the tax-
payer sold qualified clean hydrogen it had
produced or in which the taxpayer pur-
chased inputs for the production of such
hydrogen;
(iii) The qualified verifier is not related,
within the meaning of section 267(b) or
707(b)(1) of the Code, to, or an employee
of, the taxpayer;
(iv) The qualified verifier is not married
to an individual described in paragraph (e)
(1)(iii) of this section; and
(v) If the qualified verifier is acting in
his or her capacity as a partner in a partner-
ship, an employee of any person, whether
an individual, corporation, or partnership,
or an independent contractor engaged by
a person other than the taxpayer, the attes-
tations under paragraphs (e)(1)(i) through
(iv) of this section must also be made with
respect to the partnership or the person who
employs or engages the qualified verifier.
(2) Special rule for transfer elections.
If an election has been made under section
6418(a) of the Code with respect to the
section 45V credit, then the attestations
under paragraph (e)(1) of this section
must be made with respect to the qualified
verifier’s independence from both the eli-
gible taxpayer and the transferee taxpayer
(as those terms are defined in section 6418
and the regulations in this chapter there-
under).
(f) Requirements for the qualified veri-
fier statement. The qualified verifier state-
ment must include the following—
(1) The qualified verifier’s name,
address, and taxpayer identification num-
ber;
(2) The qualified verifier’s qualifica-
tions to conduct the verification, includ-
ing a description of the qualified verifier’s
education and experience and a photo-
copy of the qualified verifier’s certificate
received from their accrediting body;
(3) If the qualified verifier is acting in
his or her capacity as a partner in a partner-
ship, an employee of any person, whether
an individual, corporation, or partnership,
or an independent contractor engaged by a
person other than the taxpayer, the name,
address, and taxpayer identification num
-
ber of the partnership or the person who
employs or engages the qualified verifier;
(4) The signature of the qualified ver-
ifier and the date signed by the qualified
verifier; and
(5) A statement that the verification
was conducted for Federal income tax
purposes.
(g) General information on the tax-
payer’s hydrogen production facility.
The verification report must include the
following information for the taxpayer’s
hydrogen production facility where the
hydrogen production undergoing verifica-
tion occurred:
(1) The location of the hydrogen pro-
duction facility;
(2) A description of the hydrogen pro-
duction facility, including its method of
producing hydrogen;
(3) The type(s) of feedstock(s) used by
the hydrogen production facility during
the taxable year of production;
(4) The amount(s) of feedstock(s) used
by the hydrogen production facility during
the taxable year of production; and
(5) A list of the metering devices used
to record any data used by the qualified
verifier to support the production attes-
tation under paragraph (c) of this section
along with a statement that the qualified
verifier is reasonably assured that the
device(s) underwent industry-appropriate
quality assurance and quality control, and
the accuracy and calibration of the device
has been tested in the last year.
(h) Qualified verifier. The term quali-
fied verifier means any individual or orga-
nization with active accreditation—
(1) As a validation and verification
body from the American National Stan-
dards Institute National Accreditation
Board; or
(2) As a verifier, lead verifier, or ver-
ification body under the California Air
Resources Board Low Carbon Fuel Stan-
dard program.
(i) Unrelated party. For purposes of
section 45V(c)(2)(B)(ii), the term unre-
lated party means a qualified verifier who
meets the requirements of paragraph (e) of
this section.
(j) Requirements for taxpayers claim-
ing both the section 45V credit and the
section 45 credit or the section 45U
credit. In the case of a taxpayer who pro-
duces electricity for which either the sec-
tion 45 or section 45U credit is claimed
and the taxpayer or a related person uses
such electricity to produce hydrogen for
which the section 45V credit is claimed,
the verification report must also contain
attestations that the qualified verifier per-
formed a verification sufficient to deter-
mine that—
(1) The electricity used to produce such
hydrogen was produced at the relevant
facility for which a section 45 or section
45U credit is claimed;
(2) The given amount of electricity
(in kilowatt hours) used to produce such
hydrogen at the relevant hydrogen pro-
duction facility is reasonably assured of
being accurate; and

April 1, 2024 790 Bulletin No. 2024–14
(3) The electricity for which a section
45 or 45U credit was claimed is repre-
sented by EACs that are retired in connec-
tion with the production of such hydrogen.
(k) Timely verification report. A verifi-
cation report must be signed and dated by
the qualified verifier no later than—
(1) The due date, including extensions,
of the Federal income tax return or infor-
mation return for the taxable year during
which the hydrogen undergoing verifica-
tion is produced; or
(2) In the case of a credit first claimed
on an amended return or administrative
adjustment request, the date on which the
amended return or administrative adjust-
ment request is filed.
(l) Applicability date. This section
applies to taxable years beginning after
December 26, 2023.
§1.45V-6 Rules for determining the
placed in service date for an existing
facility that is modified or retrofitted to
produce qualified clean hydrogen.
(a) Modification of an existing facil-
ity—(1) In general. Under section 45V(d)
(4) of the Code, in the case of an existing
facility that—
(i) Was originally placed in service
before January 1, 2023, and, prior to the
modification described in this paragraph
(a), did not produce qualified clean hydro-
gen, and after the date such facility was
originally placed in service—
(A) Is modified to produce qualified
clean hydrogen; and
(B) Amounts paid or incurred with
respect to such modification are prop-
erly chargeable to the taxpayer’s capital
account for the facility.
(ii) Such facility will be deemed to
have been originally placed in service as
of the date the property required to com-
plete the modification described in this
paragraph (a) is placed in service.
(2) Modification requirements. For pur-
poses of section 45V(d)(4) and paragraph
(a)(1) of this section, an existing facility
will not be deemed to have been originally
placed in service as of the date the prop-
erty required to complete the modification
is placed in service unless the modifica-
tion is made for the purpose of enabling
the facility to produce qualified clean
hydrogen and the taxpayer pays or incurs
an amount that is properly chargeable to
the taxpayer’s capital account with respect
to the facility. A modification is made for
the purpose of enabling the facility to
produce qualified clean hydrogen if the
facility could not produce hydrogen with
a lifecycle greenhouse gas (GHG) emis-
sions rate that is less than or equal to 4
kilograms of CO2e per kilogram of hydro-
gen but for the modification. For example,
if a taxpayer solely pays or incurs capital
expenses to modify existing components
of a hydrogen production facility that are
not necessary for the production of hydro-
gen with a lifecycle GHG emissions rate
that is less than or equal to 4 kilograms
of CO2e per kilogram of hydrogen, such
modification does not entitle the facility to
a new placed in service date.
(b) Retrofit of an existing facility (80/20
Rule). For purposes of section 45V(a)(1),
a facility may establish a new date on
which it is considered originally placed in
service, even though the facility contains
some used property, provided the fair mar-
ket value of the used property is not more
than 20 percent of the facility’s total value,
calculated by adding the cost of the new
property to the value of the used property
(80/20 Rule). For purposes of the 80/20
Rule, the cost of new property includes
all properly capitalized costs of the new
property included within the facility. The
80/20 Rule applies to any existing facility,
regardless of whether the facility previ-
ously produced qualified clean hydrogen
and regardless of when the facility was
originally placed in service (before appli-
cation of this paragraph (b)). If a facility
satisfies the requirements of the 80/20
Rule, then the date on which such facility
is considered originally placed in service
for purposes of section 45V(a)(1) is the
date on which the new property added to
the facility is placed in service.
(c)
Examples. The following examples
illustrate the application of paragraphs (a)
and (b) of this section:
(1) Example 1: Modification of an existing
facility—(i) Facts. Facility X, a hydrogen produc-
tion facility that was originally placed in service on
January 1, 2018, could not produce qualified clean
hydrogen as described in section 45V(c)(2). After
January 1, 2023, Facility X was modified to pro-
duce qualified clean hydrogen, and all amounts paid
or incurred with respect to such modifications were
properly chargeable to the taxpayer’s capital account
for Facility X. The property required to complete the
modification was placed in service on June 1, 2023.
(ii) Analysis. Under section 45V(d)(4) and para-
graph (a) of this section, because Facility X was orig-
inally placed in service before January 1, 2023, and
before the modification could not produce qualified
clean hydrogen, it is deemed to be originally placed
in service as of the date the property required to com-
plete the modification is placed in service. Accord-
ingly, for purposes of section 45V(a)(1) and (d)(4),
Facility X is deemed to have been originally placed
in service on June 1, 2023.
(2) Example 2: Modification of an existing facil-
ity; coordination with the section 45Q credit previ-
ously allowed—(i) Facts. The facts are the same as in
paragraph (c)(1) of this section (Example 1), except
that taxpayer was allowed a section 45Q credit with
respect to carbon capture equipment (CCE) included
at Facility X before June 1, 2023.
(ii) Analysis. Under paragraph (a) of this section
and §1.45V-2(a), although Facility X is deemed to
have been originally placed in service on June 1,
2023, because taxpayer had previously been allowed
a section 45Q credit with respect to the CCE included
at Facility X, no section 45V credit is allowable for
qualified clean hydrogen produced at Facility X,
despite the modification.
(3) Example 3: Modification of an existing facil-
ity and coordination with section 45Q credit not
previously allowed—(i) Facts. Facility Y, a hydro-
gen production facility that was originally placed in
service on February 1, 2020, could not previously
produce qualified clean hydrogen as described in
section 45V(c)(2). On February 1, 2026, Facility Y
was modified to produce qualified clean hydrogen
by adding new CCE to allow Facility Y to capture,
process, and prepare carbon dioxide for transport for
disposal, injection, or utilization. All amounts paid
or incurred with respect to such modifications were
properly chargeable to the taxpayer’s capital account
for Facility Y. The property required to complete the
modification of Facility Y was placed in service on
February 1, 2026, and as a result, Facility Y, includ-
ing the new CCE, is deemed to be originally placed
in service on February 1, 2026, for purposes of sec-
tions 45V and 45Q. No section 45Q credit has been
allowed to any taxpayer with respect to the new CCE
located at Facility Y.
(ii) Analysis. Under paragraph (a) of this section
and §1.45V-2(a), because no section 45Q credit has
been allowed to any taxpayer with respect to the new
CCE located at Facility Y, a section 45V credit is
allowable for the qualified clean hydrogen produced
at Facility Y, assuming all other requirements of sec-
tion 45V are met.
(4) Example 4: Retrofit of an existing facility
(80/20 Rule)—(i) Facts. Facility Z, a hydrogen pro-
duction facility that was originally placed in service
on February 1, 2023, does not produce qualified
clean hydrogen as described in section 45V(c)(2).
On January 1, 2026, Facility Z was retrofitted to
produce qualified clean hydrogen. After the retrofit,
the cost of the new property included in Facility Z
is greater than 80 percent of Facility Z’s total value.
(ii) Analysis. Even though Facility Z does not sat-
isfy the requirements of section 45V(d)(4) because
Facility Z was not originally placed in service before
January 1, 2023, under paragraph (b) of this section,
Facility Z is deemed to be originally placed in ser-
vice on January 1, 2026, because Facility Z meets the

Bulletin No. 2024–14 791 April 1, 2024
80/20 Rule. Thus, a section 45V credit is allowable
for qualified clean hydrogen produced at Facility Z
during the 10-year period beginning on January 1,
2026, assuming all other requirements of section
45V are met.
(5) Example 5: Retrofit of an Existing Facility
(80/20 Rule) and coordination with section 45Q
credit previously allowed—(i) Facts. The facts
are the same as in paragraph (c)(4) of this section
(Example 4), except that before the retrofit, Facility
Z included CCE for which a section 45Q credit was
allowed to a taxpayer.
(ii) Analysis. Under paragraph (b) of this section
and §1.45V-2(a), Facility Z is deemed to be origi-
nally placed in service on January 1, 2026, because
Facility Z meets the 80/20 Rule. However, a section
45V credit is not allowable for qualified clean hydro-
gen produced at Facility Z during the 10-year period
beginning on January 1, 2026, because a section 45Q
credit has been allowed to a taxpayer with regard to
the CCE included in Facility Z.
(d) Applicability date. This section
applies to taxable years beginning after
December 26, 2023.
Par. 3. Section 1.48-15 is added to read
as follows:
§1.48-15 Election to treat clean
hydrogen production facility as energy
property.
(a) In general. Under section 48(a)(15)
of the Internal Revenue Code (Code), a
taxpayer that owns and places in service a
specified clean hydrogen production facil-
ity (as defined in section 48(a)(15)(C) and
paragraph (b) of this section) can make an
irrevocable election under section 48(a)
(15)(C)(ii)(II) to treat any qualified prop-
erty (as defined in section 48(a)(5)(D))
that is part of the facility as energy prop-
erty for purposes of section 48.
(b) Specified clean hydrogen produc-
tion facility. The term specified clean
hydrogen production facility means any
qualified clean hydrogen production facil-
ity—
(1) That is placed in service after
December 31, 2022;
(2) With respect to which no credit has
been allowed under section 45V or 45Q
of the Code, and for which the taxpayer
makes an irrevocable election to have sec-
tion 48(a)(15) apply; and
(3) For which an unrelated party has
verified in the manner specified in para-
graph (e) of this section that such facility
produces hydrogen through a process that
results in lifecycle greenhouse gas (GHG)
emissions that are consistent with the
hydrogen that such facility was designed
and expected to produce under section
48(a)(15)(A)(ii) and paragraph (c) of this
section.
(c) Energy percentage—(1) In general.
In the case of a specified clean hydrogen
production facility that is designed and
reasonably expected to produce qualified
clean hydrogen through a process that
results in a lifecycle GHG emissions rate
of:
(i) Not greater than 4 kilograms of car-
bon dioxide equivalent (CO2e) per kilo-
gram of hydrogen, and not less than 2.5
kilograms of CO2e per kilogram of hydro-
gen, the energy percentage is 1.2 percent;
(ii) Less than 2.5 kilograms of CO2e
per kilogram of hydrogen, and not less
than 1.5 kilograms of CO2e per kilogram
of hydrogen, the energy percentage is 1.5
percent;
(iii) Less than 1.5 kilograms of CO2e
per kilogram of hydrogen, and not less
than 0.45 kilograms of CO2e per kilogram
of hydrogen, the energy percentage is 2
percent; and
(iv) Less than 0.45 kilograms of CO2e
per kilogram of hydrogen, the energy per-
centage is 6 percent.
(2) Designed and reasonably expected
to produce. Hydrogen that a facility is
designed and reasonably expected to pro-
duce means hydrogen produced through a
process that results in the lifecycle GHG
emissions rate specified in the annual ver-
ification report described in paragraph (e)
(2) of this section for the taxable year in
which the election is made.
(d) Time and manner of making the
election—(1) In general. To make an elec-
tion under section 48(a)(15)(C)(ii)(II), a
taxpayer must claim the section 48 credit
with respect to a specified clean hydrogen
production facility on a completed Form
3468, Investment Credit, or any succes-
sor form(s), and file the form with the
taxpayer’s Federal income tax return or
information return for the taxable year in
which the specified clean hydrogen pro-
duction facility is placed in service. The
taxpayer must also attach a statement to
its Form 3468, Investment Credit, or any
successor form(s), filed with its Federal
income tax return or information return
that includes the information required by
the instructions to Form 3468, Investment
Credit, or any successor form(s), for each
specified clean hydrogen production facil-
ity subject to an election. A separate elec-
tion must be made for each specified clean
hydrogen production facility that meets
the requirements provided in section 48(a)
(15) to treat the qualified property that is
part of the facility as energy property. If
any taxpayer owning an interest in a spec-
ified clean hydrogen production facility
makes an election under section 48(a)(15)
(C)(ii)(II) with respect to the specified
clean hydrogen production facility, then
that election is binding on all taxpayers
that directly or indirectly own an interest
in the specified clean hydrogen production
facility.
(2) Special rule for partnerships and
S corporations. In the case of a specified
clean hydrogen production facility owned
by a partnership or an S corporation, the
election under section 48(a)(15)(C)(ii)(II)
is made by the partnership or S corpora-
tion and is binding on all ultimate credit
claimants (as defined in §1.50-1(b)(3)(ii)).
The partnership or S corporation must file
a Form 3468, Investment Credit, or any
successor form(s), with its partnership or
S corporation return for the taxable year
in which the specified clean hydrogen
production facility is placed in service
to indicate that it is making the election,
and attach a statement that includes all the
information required by the instructions
to Form 3468, Investment Credit, or any
successor form(s), for each specified clean
hydrogen production facility subject to the
election. The ultimate credit claimant’s
section 48 credit must be based on each
claimant’s share of the basis (as defined in
§1.46-3(f)) of the specified clean hydro-
gen production facility on a completed
Form 3468, Investment Credit, or any suc-
cessor form(s), and file such form with a
Federal income tax return for the taxable
year that ends with or within the taxable
year in which the partnership or S corpo-
ration made the election. The partnership
or S corporation making the election must
provide the ultimate credit claimants with
the necessary information to complete
Form 3468, Investment Credit, or any
successor form(s), to claim the section 48
credit.
(3) Election irrevocable. The election
to treat qualified property that is part of a
specified clean hydrogen production facil-
ity as energy property is irrevocable.

April 1, 2024 792 Bulletin No. 2024–14
(4) Election availability date. The elec-
tion to treat qualified property that is part
of a specified clean hydrogen production
facility as energy property is available for
property placed in service after Decem-
ber 31, 2022. In the case of any property
placed in service after December 31, 2022,
for which construction began before Jan-
uary 1, 2023, the election under section
48(a)(15)(C)(ii)(II) applies only to the
extent of the basis of such property that
is attributable to construction, reconstruc-
tion, or erection occurring after December
31, 2022.
(e) Third party verification—(1) In
general. In the case of a taxpayer that
makes an election under section 48(a)(15)
(C)(ii)(II) to treat any qualified property
that is part of a specified clean hydrogen
production facility as energy property for
purposes of the section 48 credit, the tax-
payer must obtain an annual verification
report for the taxable year in which the
election under section 48(a)(15)(C)(ii)(II)
is made for the facility and for each tax-
able year thereafter during the recapture
period specified in paragraph (f)(3) of this
section. The taxpayer must also submit the
annual verification report as an attachment
to the Form 3468, Investment Credit, or
any successor form(s), for the taxable year
in which the election under section 48(a)
(15)(C)(ii)(II) is made for the facility.
(2) Annual verification report—(i) In
general. For purposes of paragraph (e)
(1) of this section, the annual verification
report must be signed under penalties of
perjury by a qualified verifier (as defined
in §1.45V-5(h)) and contain an attestation
providing all of the following—
(A) The information specified in
§1.45V-5(b) and (d) through (h);
(B) A statement attesting to the life-
cycle GHG emissions rate (determined
under section 45V(c) and §1.45V-4) of
the hydrogen produced at the specified
clean hydrogen production facility for the
taxable year to which the annual verifica-
tion report relates and that the operation,
during such taxable year, of the specified
clean hydrogen production facility, and
any energy attribute certificates (EACs)
applied pursuant to §1.45V-4(d) for the
purpose of accounting for such facility’s
emissions, are accurately reflected in the
data that the taxpayer entered into the
most recent GREET model (as defined in
§1.45V-1(a)(8)(ii)) (or that the taxpayer
provided to the Department of Energy
(DOE) in support of the taxpayer’s request
for an emissions value), to determine
the lifecycle GHG emissions rate of the
hydrogen undergoing verification; and
(C) A statement attesting that the facil-
ity produced hydrogen through a process
that results in a lifecycle GHG emissions
rate that is consistent with, or lower than,
the lifecycle GHG emissions rate of the
hydrogen that such facility was designed
and expected to produce.
(ii) Conflict attestation in the case of a
transfer election. If a transfer election has
been made under section 6418(a) of the
Code with respect to the section 48 credit
for a specified clean hydrogen production
facility, then a conflict attestation contain-
ing the information specified in §1.45V-
5(e)(1), must be made with respect to the
qualified verifier’s independence from
both the eligible taxpayer (as defined in
section 6418(f)(2) and §1.6418-1(b)) and
the transferee taxpayer (as described in
section 6418(a) and defined in §1.6418-
1(m)), and without regard to the require-
ments under §1.45V-5(e)(2).
(iii) Inconsistent lifecycle GHG emis-
sions. In the event the facility produces
hydrogen through a process that results
in a lifecycle GHG emissions rate that is
greater than the lifecycle GHG emissions
rate that such facility was designed and
expected to produce (and thus the quali-
fied verifier cannot provide the attestation
specified in paragraph (e)(2)(i)(C) of this
section), resulting in a reduced energy
percentage under section 48(a)(15)(A)(ii)
with respect to such facility, an emissions
tier recapture event under paragraph (f)(2)
of this section will occur.
(iv) Designed and expected to produce.
Hydrogen that the facility was designed
and expected to produce
means hydrogen
specified in paragraph (c)(2) of this sec-
tion.
(v) Timely annual verification report.
The annual verification report must be
signed and dated by the qualified verifier
no later than the due date, including exten-
sions, of the Federal income tax return for
the taxable year in which the hydrogen
undergoing verification was produced.
(vi) Records retention. In addition to
the recordkeeping requirements set forth
in paragraph (g) of this section, the tax-
payer must retain the annual verification
report for at least six years after the due
date, with extensions, for filing the Fed-
eral income tax return for the taxable year
in which the hydrogen undergoing verifi-
cation was produced.
(f) Recapture—(1) In general. For pur-
poses of section 48(a)(15)(E), in any tax-
able year of the recapture period specified
in paragraph (f)(3) of this section in which
an emissions tier recapture event (as
defined in paragraph (f)(2) of this section)
occurs, the tax imposed on the taxpayer
under chapter 1 of the Code for the taxable
year of the emissions tier recapture event
is increased by the recapture amount spec-
ified in paragraph (f)(4) of this section.
(2) Emissions tier recapture event. For
purposes of paragraph (f)(1) of this sec-
tion, an emissions tier recapture event
occurs in any taxable year of the recap-
ture period specified in paragraph (f)(3) of
this section under the following circum-
stances—
(i) The taxpayer fails to obtain an
annual verification report by the deadline
for filing its Federal income tax return
(including extensions) for any taxable
year in which an annual verification report
is required under paragraph (e)(1) of this
section;
(ii) The specified clean hydrogen pro-
duction facility actually produced hydro-
gen through a process that results in a life-
cycle GHG emissions rate that can only
support a lower energy percentage than
the energy percentage used to calculate
the amount of the section 48 credit for the
facility for the taxable year in which the
facility is placed in service; or
(iii) The specified clean hydrogen pro-
duction facility actually produced hydro-
gen through a process that results in a
lifecycle GHG emissions rate of greater
than 4 kilograms of CO2e per kilogram of
hydrogen.
(3) Recapture period. For purposes of
paragraph (f) of this section, the recapture
period begins on the first day of the tax-
able year after the taxable year in which
the facility was placed in service and ends
on the close of the fifth taxable year fol-
lowing the close of the taxable year in
which the facility was placed in service.
(4) Recapture amount—(i) In general.
In the case of an emissions tier recapture
event under paragraph (f)(2) of this sec-

Bulletin No. 2024–14 793 April 1, 2024
tion, the recapture amount for the taxable
year in which the emissions tier recapture
event occurred is equal to 20 percent of
the excess of the section 48 credit allowed
to the taxpayer for the specified clean
hydrogen production facility for the tax-
able year in which the facility was placed
in service, over the section 48 credit that
would have been allowed to the taxpayer
for the facility if the taxpayer had used the
energy percentage supported by the actual
production to calculate the amount of the
section 48 credit. Such increase in tax is
the recapture amount.
(ii) Carrybacks and carryovers. In the
case of any emissions tier recapture event
described in paragraph (f)(2) of this sec-
tion, the carrybacks and carryovers under
section 39 must be adjusted by reason of
the emissions tier recapture event.
(iii) Recapture amount in case of recap-
ture events under paragraph (f)(2)(i) or
(iii) of this section. For purposes of para-
graph (f)(4)(i) of this section, in the case
of an emissions tier recapture event under
paragraph (f)(2)(i) or (iii), the amount of
the section 48 credit that would have been
allowed to the taxpayer for the specified
clean hydrogen production facility if the
taxpayer had used the energy percentage
supported by the actual production is zero.
Accordingly, the recapture amount in the
taxable year of an emissions tier recapture
event under paragraph (f)(2)(i) or (iii) is
20 percent of the section 48 credit allowed
to the taxpayer for such specified clean
hydrogen production facility.
(5) Example. The following example
illustrates the application of paragraphs
(f)(1) through (4) of this section.
(i) Facts. On June 1, 2023, Taxpayer, a cal-
endar-year taxpayer, originally places in service
Facility X, a specified clean hydrogen production
facility. At such time, Taxpayer’s basis in qualified
property that is part of Facility X is $100,000,000.
In the taxable year in which Facility X was origi-
nally placed in service (taxable year 2023), Facil-
ity X produces qualified clean hydrogen through a
process that results in a lifecycle GHG emissions
rate of 0.44kg of CO2e per kilogram of hydrogen.
Taxpayer submits with its 2023 Federal income tax
return an annual verification report attesting that, for
the taxable year 2023, Facility X produced hydrogen
through a process that resulted in a lifecycle GHG
emissions rate of 0.44kg of CO2e per kilogram of
hydrogen, which is consistent with the lifecycle
GHG emissions rate of the hydrogen that the facil-
ity was designed and expected to produce. Taxpayer
makes a valid election under section 48(a)(15)(C)(ii)
(II) with respect to Facility X on its Federal income
tax return for the taxable year 2023. In the first year
of the recapture period (taxable year 2024), Tax-
payer fails to obtain an annual verification report
by the deadline (including extensions) for filing its
2024 Federal income tax return. In the second year
of the recapture period (taxable year 2025), Facility
X produces qualified clean hydrogen through a pro-
cess that results in a lifecycle GHG emissions rate of
1.4kg of CO2e per kilogram of hydrogen and obtains
an annual verification report attesting to such life-
cycle GHG emissions rate. In the third, fourth, and
fifth years of the recapture period (taxable years
2026, 2027, and 2028), Facility X produces qualified
clean hydrogen through a process that results in a
lifecycle GHG emissions rate of 0.44kg of CO2e per
kilogram of hydrogen and obtains an annual verifica-
tion report attesting to such lifecycle GHG emissions
rate, and attesting that such lifecycle GHG emissions
rate is consistent with the lifecycle GHG emissions
rate of the hydrogen that the facility was designed
and expected to produce, by the deadline (including
extensions) for filing its 2026, 2027, and 2028 Fed-
eral income tax returns, respectively.
(ii) Analysis. Facility X is designed and reason-
ably expected to produce hydrogen through a pro-
cess that results in a lifecycle GHG emissions rate
of 0.44kg of CO2e per kilogram of hydrogen, which
is the rate specified in Taxpayer’s annual verification
report submitted with Taxpayer’s Federal income
tax return for the taxable year in which the election
under section 48(a)(15)(C)(ii)(II) with respect to
Facility X was made. Under paragraph (c)(1)(iv)
of this section, Facility X’s energy percentage is
therefore 6 percent. For the taxable year 2023, the
year in which Taxpayer places in service Facility
X, Taxpayer claims a section 48 credit for its basis
in qualified property that is part of Facility X in the
amount of $6,000,000 (6 percent of $100,000,000).
In taxable year 2024, there is an emissions tier recap-
ture event under paragraph (f)(2)(i) of this section
because Taxpayer failed to obtain an annual verifi-
cation report. Under paragraph (f)(4)(i) of this sec-
tion, the amount of the section 48 credit recaptured
in 2024 is $1,200,000. This reflects 20 percent of the
section 48 credit allowed ($6,000,000) for Facility
X. In taxable year 2025, there is an emissions tier
recapture event under paragraph (f)(2)(ii) of this sec-
tion because Facility X produced hydrogen through
a process that resulted in a lifecycle GHG emissions
rate that could only support an energy percentage of
2 percent, which is lower than the energy percentage
used to calculate the amount of the section 48 credit
for Facility X. Under paragraph (f)(4)(i) of this sec-
tion, the amount of the section 48 credit recaptured in
2025 is $800,000. This reflects 20 percent of the dif-
ference between the amount of the section 48 credit
allowed ($6,000,000) and the amount of the section
48 credit that would have been allowed for Facility
X if Taxpayer had used the energy percentage sup-
ported by the actual production ($2,000,000). There
is no emissions tier recapture event in taxable years
2026, 2027, or 2028 because, in those years, Facility
X produced hydrogen through a process that resulted
in a lifecycle GHG emissions rate that was consis-
tent with the lifecycle GHG emissions rate of the
hydrogen that Facility X was designed and expected
to produce, and Taxpayer obtained an annual verifi-
cation report attesting to such by the deadline (with
extensions) for filing its Federal income tax return
for each of those taxable years.
(6) Coordination with sections 50(a)
and 48(a)(10)(C) of the Code. In each
taxable year of the recapture period spec-
ified in paragraph (f)(3) of this section
for any credit allowed under section 48
with respect to a specified clean hydrogen
production facility, the recapture rules, if
applicable, apply in the following order:
(i) Section 50(a);
(ii) Section 48(a)(10)(C); and
(iii) Section 48(a)(15)(E).
(g) Recordkeeping. Consistent with
section 6001 of the Code, a taxpayer
making the election under section 48(a)
(15)(C)(ii)(II) with respect to a specified
clean hydrogen production facility must
maintain and preserve records sufficient
to establish the amount of the section 48
credit claimed by the taxpayer. At a min-
imum, those records include records to
substantiate the information required to be
included in the annual verification report
under paragraph (e)(2) of this section,
records establishing that the facility meets
the definition of a specified clean hydro-
gen production facility under section 48(a)
(15)(C) and paragraph (b) of this section,
and records establishing the date the spec-
ified clean hydrogen production facility
was placed in service. If the increased sec-
tion 48 credit amount was allowed under
section 48(a)(9), then the taxpayer must
also maintain records in accordance with
§1.45-12.
(h) Applicability date. This section
applies to taxable years beginning after
December 26, 2023.
Douglas W. O’Donnell,
Deputy Commissioner for Services and
Enforcement.
(Filed by the Office of the Federal Register March
01, 2024, 8:45 a.m., and published in the issue of the
Federal Register for March 4, 2024, 88 FR 15523)

Bulletin No. 2024–14 i April 1, 2024
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

April 1, 2024 ii Bulletin No. 2024–14
Numerical Finding List
1
Bulletin 2024–14
Announcements:
2024-1, 2024-02 I.R.B. 363
2024-3, 2024-02 I.R.B. 364
2024-5, 2024-05 I.R.B. 635
2024-6, 2024-05 I.R.B. 635
2024-4, 2024-06 I.R.B. 665
2024-7, 2024-07 I.R.B. 673
2024-8, 2024-07 I.R.B. 674
2024-9, 2024-07 I.R.B. 675
2024-12, 2024-08 I.R.B. 676
2024-11, 2024-08 I.R.B. 683
2024-13, 2024-10 I.R.B. 710
2024-10, 2024-11 I.R.B. 711
2024-14, 2024-12 I.R.B. 719
Notices:
2024-1, 2024-02 I.R.B. 314
2024-2, 2024-02 I.R.B. 316
2024-3, 2024-02 I.R.B. 338
2024-4, 2024-02 I.R.B. 343
2024-5, 2024-02 I.R.B. 347
2024-6, 2024-02 I.R.B. 348
2024-7, 2024-02 I.R.B. 355
2024-8, 2024-02 I.R.B. 356
2024-9, 2024-02 I.R.B. 358
2024-11, 2024-02 I.R.B. 360
2024-10, 2024-03 I.R.B. 406
2024-12, 2024-05 I.R.B. 616
2024-13, 2024-05 I.R.B. 618
2024-16, 2024-05 I.R.B. 622
2024-18, 2024-05 I.R.B. 625
2024-19, 2024-05 I.R.B. 627
2024-21, 2024-06 I.R.B. 659
2024-22, 2024-06 I.R.B. 662
2024-20, 2024-07 I.R.B. 668
2024-23, 2024-07 I.R.B. 672
2024-24, 2024-10 I.R.B. 707
2024-25, 2024-12 I.R.B. 712
2024-26, 2024-12 I.R.B. 713
2024-27, 2024-12 I.R.B. 715
2024-28, 2024-13 I.R.B. 720
2024-29, 2024-14 I.R.B. 751
Proposed Regulations:
REG-118492-23, 2024-02 I.R.B. 366
REG-107423-23, 2024-03 I.R.B. 411
REG-121010-17, 2024-05 I.R.B. 636
REG-101552-24, 2024-13 I.R.B. 741
REG-117631-23, 2024-14 I.R.B. 754
Revenue Procedures:
2024-1, 2024-01 I.R.B. 1
2024-2, 2024-01 I.R.B. 119
2024-3, 2024-01 I.R.B. 143
2024-4, 2024-01 I.R.B. 160
2024-5, 2024-01 I.R.B. 262
2024-7, 2024-01 I.R.B. 303
2024-8, 2024-04 I.R.B. 479
2024-9, 2024-05 I.R.B. 628
2024-12, 2024-09 I.R.B. 677
2024-13, 2024-09 I.R.B. 678
2024-14, 2024-09 I.R.B. 682
2024-15, 2024-12 I.R.B. 717
2024-11, 2024-13 I.R.B. 721
Revenue Rulings:
2024-1, 2024-02 I.R.B. 307
2024-2, 2024-02 I.R.B. 311
2024-3, 2024-06 I.R.B. 646
2024-5, 2024-07 I.R.B. 666
2024-4, 2024-10 I.R.B. 686
2024-6, 2024-10 I.R.B. 688
2024-7, 2024-14 I.R.B. 749
Treasury Decisions:
9984, 2024-03 I.R.B. 386
9985, 2024-05 I.R.B. 573
9986, 2024-05 I.R.B. 610
9987, 2024-06 I.R.B. 648
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2023–27 through 2023–52 is in Internal Revenue Bulletin
2023–52, dated December 26, 2023.

Bulletin No. 2024–14 iii April 1, 2024
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2024–14
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A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2023–27 through 2023–52 is in Internal Revenue Bulletin
2023–52, dated December 26, 2023.

Internal Revenue Service
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INTERNAL REVENUE BULLETIN
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