The Biden administration finalized rules meant to boost domestic production of hydrogen fuel through a new tax credit, a move that might also keep struggling nuclear power plants on line for longer.

The US’ 45V hydrogen tax credit is among the most – if not the most – generous incentives for hydrogen production in the world, according to industry experts.

Various stakeholders within the nuclear industry say the clarity provided by the Treasury Department’s hydrogen tax credit rules is a positive step rather than a thorough solution to the obstacles they face in a nascent global hydrogen market.

Plug Power shares surged for a second straight session on new tax credit rules for clean hydrogen production. Last week, the Treasury Department issued the final rules for the tax credits spelled out in the Inflation Reduction Act of 2022.

The new regulations allow nuclear power and natural gas producers to qualify for significant credits aimed at hydrogen production.

The U.S. Treasury Department’s new regulations for the Clean Hydrogen Production Tax Credit (45V) broaden eligibility for hydrogen producers utilizing biomethane or renewable natural gas (RNG).

The Biden administration finalized long-awaited tax guidance Friday for the production of “clean” hydrogen, but the lasting impact — and even survival — of the credits may come down to Hill Republicans.

The Biden administration released long-awaited final rules Friday for a tax credit that will send billions of dollars to producers of cleaner hydrogen.