Bulletin No. 2025–13

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HIGHLIGHTS

OF THIS ISSUE

Bulletin No. 2025–13

March 24, 2025

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.

ADMINISTRATIVE

Rev. Rul. 2025-7, page 1239.

Interest rates: underpayments and overpayments. The rates

for interest determined under Section 6621 of the code for

the calendar quarter beginning April 1, 2025, will be 7 percent for overpayments (6 percent in the case of a corporation), 7 percent for underpayments, and 9 percent for large

corporate underpayments. The rate of interest paid on the

portion of a corporate overpayment exceeding $10,000 will

be 4.5 percent.

INCOME TAX

Notice 2025-16, page 1378.

Notice 2025-16 provides for adjustments to the limitation on

housing expenses for purposes of section 911 of the Internal Revenue Code for the 2025 tax year. These adjustments

are made on the basis of geographic differences in housing

costs relative to housing costs in the United States. If the

limitation on housing expenses is higher for the 2025 tax

year than the adjusted limitations on housing expenses provided in Notice 2024-31, qualified taxpayers may apply the

adjusted limitations in this notice for the 2025 tax year to

their 2024 tax year.

Rev. Proc. 2025-17, page 1382.

Generally, U.S. citizens or resident aliens living and working

abroad are taxed on their worldwide income. However, if

their tax home is in a foreign country and they meet either the

bona fide residence test or the physical presence test, they

can choose to exclude from their income a limited amount

of their foreign earned income (up to $126,500 for 2024).

Both the bona fide residence test and the physical presence

test contain minimum time requirements. Revenue Procedure

Finding Lists begin on page ii.

2025-17 provides a waiver under section 911(d)(4) for the

time requirements for individuals electing to exclude their

foreign earned income who must leave a foreign country

because of war, civil unrest, or similar adverse conditions in

that country. Rev. Proc. 2025-17 adds Ukraine, Iraq, Haiti,

and Bangladesh to the list of waiver countries for tax year

2024 for which the minimum time requirements are waived.

T.D. 10023, page 1259.

These final regulations 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 final

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 final regulations also provide guidance on the election 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.

TAX CONVENTIONS

Announcement 2025-8, page 1384.

The competent authorities of the United States and the Swiss

Confederation have entered a Competent Authority Arrangement under paragraph 3 of Article 25 (Mutual Agreement

Procedure) of the Convention Between the United States of

America and the Swiss Confederation for the Avoidance of

Double Taxation with Respect to Taxes on Income signed at

Washington on October 2, 1996, as amended by the Protocol, signed on September 23, 2009, regarding certain U.S.

and Swiss pension or other retirement arrangements, including individual retirement savings plans, that may be eligible

for benefits under paragraph 3 of Article 10 (Dividends).

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 official 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 substantive 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 otherwise indicated. Procedures relating solely to matters of internal 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 rulings 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, disbarment 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.

March 24, 2025

Bulletin No. 2025–13

Part I

Section 6621.–

Determination of Rate of

Interest

26 CFR 301.6621-1: Interest rate.

Rev. Rul. 2025-7

Section 6621 of the Internal Revenue Code establishes the interest rates

on overpayments and underpayments of

tax. Under section 6621(a)(1), the overpayment rate is the sum of the federal

short-term rate plus 3 percentage points (2

percentage points in the case of a corporation), except the rate for the portion of

a corporate overpayment of tax exceeding

$10,000 for a taxable period is the sum

of the federal short-term rate plus 0.5 of

a percentage point. Under section 6621(a)

(2), the underpayment rate is the sum of

the federal short-term rate plus 3 percentage points.

Section 6621(c) provides that for purposes of interest payable under section

6601 on any large corporate underpayment, the underpayment rate under section

6621(a)(2) is determined by substituting

“5 percentage points” for “3 percentage

points.” See section 6621(c) and section

301.6621-3 of the Regulations on Procedure and Administration for the definition

of a large corporate underpayment and

for the rules for determining the applicable date. Section 6621(c) and section

301.6621-3 are generally effective for

periods after December 31, 1990.

Section 6621(b)(1) provides that the

Secretary will determine the federal shortterm rate for the first month in each calendar quarter. Section 6621(b)(2)(A)

provides that the federal short-term rate

Bulletin No. 2025–13

determined under section 6621(b)(1) for

any month applies during the first calendar quarter beginning after that month.

Section 6621(b)(3) provides that the federal short-term rate for any month is the

federal short-term rate determined during

that month by the Secretary in accordance

with section 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of

1 percent, the rate is increased to the next

highest full percent).

Notice 88-59, 1988-1 C.B. 546,

announced that in determining the quarterly interest rates to be used for overpayments and underpayments of tax under

section 6621, the Internal Revenue Service will use the federal short-term rate

based on daily compounding because that

rate is most consistent with section 6621

which, pursuant to section 6622, is subject

to daily compounding.

The federal short-term rate determined

in accordance with section 1274(d) during

January 2025 is the rate published in Revenue Ruling 2025-5, 2025-7 IRB 767, to

take effect beginning February 1, 2025.

The federal short-term rate, rounded to the

nearest full percent, based on daily compounding determined during the month of

January 2025 is 4 percent. Accordingly,

an overpayment rate of 7 percent (6 percent in the case of a corporation) and an

underpayment rate of 7 percent are established for the calendar quarter beginning

April 1, 2025. The overpayment rate for

the portion of a corporate overpayment

exceeding $10,000 for the calendar quarter beginning April 1, 2025, is 4.5 percent.

The underpayment rate for large corporate

underpayments for the calendar quarter beginning April 1, 2025, is 9 percent.

These rates apply to amounts bearing

interest during that calendar quarter.

1239

Sections 6654(a)(1) and 6655(a)

(1) provide that the underpayment rate

established under section 6621 applies

in determining the addition to tax under

sections 6654 and 6655 for failure to

pay estimated tax for any taxable year.

Thus, the 7 percent rate also applies to

estimated tax underpayments for the

second calendar quarter beginning April

1, 2025. Pursuant to section 6621(b)(2)

(B), in determining the addition to tax

under section 6654 for any taxable year

for an individual, the federal short-term

rate that applies during the third month

following the taxable year also applies

during the first 15 days of the fourth

month following the taxable year. See

Rev. Rul. 2024-25, 2024-49 IRB 1181 (7

percent rate for the first quarter of 2025).

In addition, pursuant to section 6603(d)

(4), the rate of interest on section 6603

deposits is 4 percent for the second calendar quarter in 2025.

Interest factors for daily compound

interest for annual rates of 4.5 percent, 6

percent, 7 percent and 9 percent are published in Tables 14, 17, 19 and 23 of Rev.

Proc. 95-17, 1995-1 C.B. 568, 571, 573,

and 577.

Annual interest rates to be compounded

daily pursuant to section 6622 that apply

for prior periods are set forth in the tables

accompanying this revenue ruling.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Casey R. Conrad of the Office of

the Associate Chief Counsel (Procedure

and Administration). For further information regarding this revenue ruling, contact

Mr. Conrad at (202) 317-6844 (not a tollfree call).

March 24, 2025

APPENDIX A

Days

Factor

0.000013699

0.000027397

0.000041096

0.000054796

0.000068495

0.000082195

0.000095894

0.000109594

0.000123294

0.000136995

0.000150695

0.000164396

0.000178097

0.000191798

0.000205499

0.000219201

0.000232902

0.000246604

0.000260306

0.000274008

0.000287711

365 Day Year

0.5% Compound Rate 184 Days

Days

Factor

0.000863380

0.000877091

0.000890801

0.000904512

0.000918223

0.000931934

0.000945646

0.000959357

0.000973069

0.000986781

0.001000493

0.001014206

0.001027918

0.001041631

0.001055344

0.001069057

0.001082770

0.001096484

0.001110197

0.001123911

0.001137625

0.000301413

0.000315116

0.000328819

0.000342522

0.000356225

0.000369929

0.000383633

0.000397336

0.000411041

0.000424745

0.000438449

0.000452154

0.000465859

0.000479564

0.000493269

0.000506974

0.000520680

0.000534386

0.000548092

0.000561798

100

101

102

103

March 24, 2025

0.001151339

0.001165054

0.001178768

0.001192483

0.001206198

0.001219913

0.001233629

0.001247344

0.001261060

0.001274776

0.001288492

0.001302208

0.001315925

0.001329641

0.001343358

0.001357075

0.001370792

0.001384510

0.001398227

0.001411945

1240

Days

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

Factor

0.001713784

0.001727506

0.001741228

0.001754951

0.001768673

0.001782396

0.001796119

0.001809843

0.001823566

0.001837290

0.001851013

0.001864737

0.001878462

0.001892186

0.001905910

0.001919635

0.001933360

0.001947085

0.001960811

0.001974536

0.001988262

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

0.002001988

0.002015714

0.002029440

0.002043166

0.002056893

0.002070620

0.002084347

0.002098074

0.002111801

0.002125529

0.002139257

0.002152985

0.002166713

0.002180441

0.002194169

0.002207898

0.002221627

0.002235356

0.002249085

0.002262815

Bulletin No. 2025–13

0.000575504

0.000589211

0.000602917

0.000616624

0.000630331

0.000644039

0.000657746

0.000671454

0.000685161

0.000698869

0.000712578

0.000726286

0.000739995

0.000753703

0.000767412

0.000781121

0.000794831

0.000808540

0.000822250

0.000835960

0.000849670

Bulletin No. 2025–13

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

0.001425663

0.001439381

0.001453100

0.001466818

0.001480537

0.001494256

0.001507975

0.001521694

0.001535414

0.001549133

0.001562853

0.001576573

0.001590293

0.001604014

0.001617734

0.001631455

0.001645176

0.001658897

0.001672619

0.001686340

0.001700062

1241

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

0.002276544

0.002290274

0.002304004

0.002317734

0.002331465

0.002345195

0.002358926

0.002372657

0.002386388

0.002400120

0.002413851

0.002427583

0.002441315

0.002455047

0.002468779

0.002482511

0.002496244

0.002509977

0.002523710

March 24, 2025

Days

March 24, 2025

Factor

0.000013661

0.000027323

0.000040984

0.000054646

0.000068308

0.000081970

0.000095632

0.000109295

0.000122958

0.000136620

0.000150283

0.000163947

0.000177610

0.000191274

0.000204938

0.000218602

0.000232266

0.000245930

0.000259595

0.000273260

0.000286924

0.000300590

0.000314255

0.000327920

0.000341586

0.000355252

0.000368918

0.000382584

0.000396251

0.000409917

0.000423584

0.000437251

0.000450918

0.000464586

0.000478253

0.000491921

0.000505589

0.000519257

0.000532925

0.000546594

0.000560262

0.000573931

366 Day Year

0.5% Compound Rate 184 Days

Days

Factor

0.000861020

0.000874693

0.000888366

0.000902040

0.000915713

0.000929387

0.000943061

0.000956735

0.000970409

0.000984084

0.000997758

0.001011433

0.001025108

0.001038783

0.001052459

0.001066134

0.001079810

0.001093486

0.001107162

0.001120839

0.001134515

0.001148192

0.001161869

0.001175546

0.001189223

0.001202900

0.001216578

0.001230256

0.001243934

0.001257612

0.001271291

0.001284969

0.001298648

0.001312327

0.001326006

0.001339685

0.001353365

100

0.001367044

101

0.001380724

102

0.001394404

103

0.001408085

104

0.001421765

1242

Days

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

Factor

0.001709097

0.001722782

0.001736467

0.001750152

0.001763837

0.001777522

0.001791208

0.001804893

0.001818579

0.001832265

0.001845951

0.001859638

0.001873324

0.001887011

0.001900698

0.001914385

0.001928073

0.001941760

0.001955448

0.001969136

0.001982824

0.001996512

0.002010201

0.002023889

0.002037578

0.002051267

0.002064957

0.002078646

0.002092336

0.002106025

0.002119715

0.002133405

0.002147096

0.002160786

0.002174477

0.002188168

0.002201859

0.002215550

0.002229242

0.002242933

0.002256625

0.002270317

Bulletin No. 2025–13

0.000587600

0.000601269

0.000614939

0.000628608

0.000642278

0.000655948

0.000669618

0.000683289

0.000696959

0.000710630

0.000724301

0.000737972

0.000751643

0.000765315

0.000778986

0.000792658

0.000806330

0.000820003

0.000833675

0.000847348

Bulletin No. 2025–13

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

0.001435446

0.001449127

0.001462808

0.001476489

0.001490170

0.001503852

0.001517533

0.001531215

0.001544897

0.001558580

0.001572262

0.001585945

0.001599628

0.001613311

0.001626994

0.001640678

0.001654361

0.001668045

0.001681729

0.001695413

1243

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

0.002284010

0.002297702

0.002311395

0.002325087

0.002338780

0.002352473

0.002366167

0.002379860

0.002393554

0.002407248

0.002420942

0.002434636

0.002448331

0.002462025

0.002475720

0.002489415

0.002503110

0.002516806

March 24, 2025

TABLE OF INTEREST RATES

PERIODS BEFORE JUL. 1, 1975 – PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

PERIOD

RATE

Before Jul. 1, 1975

Jul. 1, 1975–Jan. 31, 1976

Feb. 1, 1976–Jan. 31, 1978

Feb. 1, 1978–Jan. 31, 1980

Feb. 1, 1980–Jan. 31, 1982

Feb. 1, 1982–Dec. 31, 1982

Jan. 1, 1983–Jun. 30, 1983

Jul. 1, 1983–Dec. 31, 1983

Jan. 1, 1984–Jun. 30, 1984

Jul. 1, 1984–Dec. 31, 1984

Jan. 1, 1985–Dec. 31, 1985

Jul. 1, 1985–Dec. 31, 1985

Jan. 1, 1986–Jun. 30, 1986

Jul. 1, 1986–Dec. 31, 1986

12%

20%

16%

11%

13%

11%

10%

Table

In 1995-1 C.B.

DAILY RATE TABLE

pg.

37,

pg.

27,

pg.

75,

pg.

75,

pg.

31,

pg.

27,

pg.

25,

pg.

23,

pg.

557

559

558

557

560

591

581

629

585

581

579

577

TABLE OF INTEREST RATES

FROM JAN. 1, 1987 – Dec. 31, 1998

Jan. 1, 1987–Mar. 31, 1987

Apr. 1, 1987–Jun. 30, 1987

Jul. 1, 1987–Sep. 30, 1987

Oct. 1, 1987–Dec. 31, 1987

Jan. 1, 1988–Mar. 31, 1988

Apr. 1, 1988–Jun. 30, 1988

Jul. 1, 1988–Sep. 30, 1988

Oct. 1, 1988–Dec. 31, 1988

Jan. 1, 1989–Mar. 31, 1989

Apr. 1, 1989–Jun. 30, 1989

Jul. 1, 1989–Sep. 30, 1989

Oct. 1, 1989–Dec. 31, 1989

Jan. 1, 1990–Mar. 31, 1990

Apr. 1, 1990–Jun. 30, 1990

Jul. 1, 1990–Sep. 30, 1990

Oct. 1, 1990–Dec. 31, 1990

Jan. 1, 1991–Mar. 31, 1991

Apr. 1, 1991–Jun. 30, 1991

Jul. 1, 1991–Sep. 30, 1991

Oct. 1, 1991–Dec. 31, 1991

Jan. 1, 1992–Mar. 31, 1992

March 24, 2025

RATE

10%

11%

10%

OVERPAYMENTS

1995-1 C.B.

TABLE

575

577

627

625

627

579

581

579

577

623

1244

UNDERPAYMENTS

1995-1 C.B. RATE

RATE

TABLE

577

10%

579

11%

629

10%

627

10%

627

11%

629

11%

581

12%

583

12%

583

11%

581

11%

581

11%

581

11%

581

11%

581

11%

581

10%

579

10%

579

10%

579

625

Bulletin No. 2025–13

Apr. 1, 1992–Jun. 30, 1992

Jul. 1, 1992–Sep. 30, 1992

Oct. 1, 1992–Dec. 31, 1992

Jan. 1, 1993–Mar. 31, 1993

Apr. 1, 1993–Jun. 30, 1993

Jul. 1, 1993–Sep. 30, 1993

Oct. 1, 1993–Dec. 31, 1993

Jan. 1, 1994–Mar. 31, 1994

Apr. 1, 1994–Jun. 30, 1994

Jul. 1, 1994–Sep. 30, 1994

Oct. 1, 1994–Dec. 31, 1994

Jan. 1, 1995–Mar. 31, 1995

Apr. 1, 1995–Jun. 30, 1995

Jul. 1, 1995–Sep. 30, 1995

Oct. 1, 1995–Dec. 31, 1995

Jan. 1, 1996–Mar. 31, 1996

Apr. 1, 1996–Jun. 30, 1996

Jul. 1, 1996–Sep. 30, 1996

Oct. 1, 1996–Dec. 31, 1996

Jan. 1, 1997–Mar. 31, 1997

Apr. 1, 1997–Jun. 30, 1997

Jul. 1, 1997–Sep. 30, 1997

Oct. 1, 1997–Dec. 31, 1997

Jan. 1, 1998–Mar. 31, 1998

Apr. 1, 1998–Jun. 30, 1998

Jul. 1, 1998–Sep. 30, 1998

Oct. 1, 1998–Dec. 31, 1998

Bulletin No. 2025–13

1245

621

619

571

573

575

577

575

623

621

623

575

573

10%

623

621

573

575

577

579

577

625

623

625

577

575

March 24, 2025

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 – PRESENT

NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

1995-1 C.B.

Jan. 1, 1999–Mar. 31, 1999

Apr. 1, 1999–Jun. 30, 1999

Jul. 1, 1999–Sep. 30, 1999

Oct. 1, 1999–Dec. 31, 1999

Jan. 1, 2000–Mar. 31, 2000

Apr. 1, 2000–Jun. 30, 2000

Jul. 1, 2000–Sep. 30, 2000

Oct. 1, 2000–Dec. 31, 2000

Jan. 1, 2001–Mar. 31, 2001

Apr. 1, 2001–Jun. 30, 2001

Jul. 1, 2001–Sep. 30, 2001

Oct. 1, 2001–Dec. 31, 2001

Jan. 1, 2002–Mar. 31, 2002

Apr. 1, 2002–Jun. 30, 2002

Jul. 1, 2002–Sep. 30, 2002

Oct. 1, 2002–Dec. 31, 2002

Jan. 1, 2003–Mar. 31, 2003

Apr. 1, 2003–Jun. 30, 2003

Jul. 1, 2003–Sep. 30, 2003

Oct. 1, 2003–Dec. 31, 2003

Jan. 1, 2004–Mar. 31, 2004

Apr. 1, 2004–Jun. 30, 2004

Jul. 1, 2004–Sep. 30, 2004

Oct. 1, 2004–Dec. 31, 2004

Jan. 1, 2005–Mar. 31, 2005

Apr. 1, 2005–Jun. 30, 2005

Jul. 1, 2005–Sep. 30, 2005

Oct. 1, 2005–Dec. 31, 2005

Jan. 1, 2006–Mar. 31, 2006

Apr. 1, 2006–Jun. 30, 2006

Jul. 1, 2006–Sep. 30, 2006

Oct. 1, 2006–Dec. 31, 2006

Jan. 1, 2007–Mar. 31, 2007

Apr. 1, 2007–Jun. 30, 2007

Jul. 1, 2007–Sep. 30, 2007

Oct. 1, 2007–Dec. 31, 2007

Jan. 1, 2008–Mar. 31, 2008

Apr. 1, 2008–Jun. 30, 2008

Jul. 1, 2008–Sep. 30, 2008

Oct. 1, 2008–Dec. 31, 2008

Jan. 1, 2009–Mar. 31, 2009

RATE

March 24, 2025

1246

TABLE

PAGE

573

575

623

625

577

575

573

571

569

567

615

617

615

617

569

571

573

575

621

619

617

619

569

Bulletin No. 2025–13

Apr. 1, 2009–Jun. 30, 2009

Jul. 1, 2009–Sep. 30, 2009

Oct. 1, 2009–Dec. 31, 2009

Jan. 1, 2010–Mar. 31, 2010

Apr. 1, 2010–Jun. 30, 2010

Jul. 1, 2010–Sep. 30, 2010

Oct. 1, 2010–Dec. 31, 2010

Jan. 1, 2011–Mar. 31, 2011

Apr. 1, 2011–Jun. 30, 2011

Jul. 1, 2011–Sep. 30, 2011

Oct. 1, 2011–Dec. 31, 2011

Jan. 1, 2012–Mar. 31, 2012

Apr. 1, 2012–Jun. 30, 2012

Jul. 1, 2012–Sep. 30, 2012

Oct. 1, 2012–Dec. 31, 2012

Jan. 1, 2013–Mar. 31, 2013

Apr. 1, 2013–Jun. 30, 2013

Jul. 1, 2013–Sep. 30, 2013

Oct. 1, 2013–Dec. 31, 2013

Jan. 1, 2014–Mar. 31, 2014

Apr. 1, 2014–Jun. 30, 2014

Jul. 1, 2014–Sep. 30, 2014

Oct. 1, 2014–Dec. 31, 2014

Jan. 1, 2015–Mar. 31, 2015

Apr. 1, 2015–Jun. 30, 2015

Jul. 1, 2015–Sep. 30, 2015

Oct. 1, 2015–Dec. 31, 2015

Jan. 1, 2016–Mar. 31, 2016

Apr. 1, 2016–Jun. 30, 2016

Jul. 1, 2016–Sep. 30, 2016

Oct. 1, 2016–Dec. 31, 2016

Jan. 1, 2017–Mar. 31, 2017

Apr. 1, 2017–Jun. 30, 2017

Jul. 1, 2017–Sep. 30, 2017

Oct. 1, 2017–Dec. 31, 2017

Jan. 1, 2018–Mar. 31, 2018

Apr. 1, 2018–Jun. 30, 2018

Jul. 1, 2018–Sep. 30, 2018

Oct. 1, 2018–Dec. 31, 2018

Jan. 1, 2019–Mar. 31, 2019

Apr. 1, 2019–Jun. 30, 2019

Jul. 1, 2019–Sep. 30, 2019

Oct. 1, 2019–Dec. 31, 2019

Jan. 1, 2020–Mar. 31, 2020

Apr. 1, 2020–Jun. 30, 2020

Bulletin No. 2025–13

1247

567

565

567

565

613

565

613

615

567

569

571

569

617

March 24, 2025

Jul. 1, 2020–Sep. 30, 2020

Oct. 1, 2020–Dec. 31, 2020

Jan. 1, 2021–Mar. 31, 2021

Apr. 1, 2021–Jun. 30, 2021

Jul. 1, 2021–Sep. 30, 2021

Oct. 1, 2021–Dec. 31, 2021

Jan. 1, 2022–Mar. 31, 2022

Apr. 1, 2022–Jun. 30, 2022

Jul. 1, 2022–Sep. 30, 2022

Oct. 1, 2022–Dec. 31, 2022

Jan. 1, 2023–Mar. 31, 2023

Apr. 1, 2023–Jun. 30, 2023

Jul. 1, 2023–Sep. 30, 2023

Oct. 1, 2023–Dec. 31, 2023

Jan. 1, 2024–Mar. 31, 2024

Apr. 1, 2024–Jun. 30, 2024

Jul. 1, 2024–Sep. 30, 2024

Oct. 1, 2024–Dec. 31, 2024

Jan. 1, 2025–Mar. 31, 2025

Apr. 1, 2025–Jun. 30, 2025

March 24, 2025

1248

613

565

567

569

571

573

575

623

573

Bulletin No. 2025–13

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 – PRESENT

CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

Jan. 1, 1999–Mar. 31, 1999

Apr. 1, 1999–Jun. 30, 1999

Jul. 1, 1999–Sep. 30, 1999

Oct. 1, 1999–Dec. 31, 1999

Jan. 1, 2000–Mar. 30, 2000

Apr. 1, 2000–Jun. 30, 2000

Jul. 1, 2000–Sep. 30, 2000

Oct. 1, 2000–Dec. 31, 2000

Jan. 1, 2001–Mar. 31, 2001

Apr. 1, 2001–Jun. 30, 2001

Jul. 1, 2001–Sep. 30, 2001

Oct. 1, 2001–Dec. 31, 2001

Jan. 1, 2002–Mar. 31, 2002

Apr. 1, 2002–Jun. 30, 2002

Jul. 1, 2002–Sep. 30, 2002

Oct. 1, 2002–Dec. 31, 2002

Jan. 1, 2003–Mar. 31, 2003

Apr. 1, 2003–Jun. 30, 2003

Jul. 1, 2003–Sep. 30, 2003

Oct. 1, 2003–Dec. 31, 2003

Jan. 1, 2004–Mar. 31, 2004

Apr. 1, 2004–Jun. 30, 2004

Jul. 1, 2004–Sep. 30, 2004

Oct. 1, 2004–Dec. 31, 2004

Jan. 1, 2005–Mar. 31, 2005

Apr. 1, 2005–Jun. 30, 2005

Jul. 1, 2005–Sep. 30, 2005

Oct. 1, 2005–Dec. 31, 2005

Jan. 1, 2006–Mar. 31, 2006

Apr. 1, 2006–Jun. 30, 2006

Jul. 1, 2006–Sep. 30, 2006

Oct. 1, 2006–Dec. 31, 2006

Jan. 1, 2007–Mar. 31, 2007

Apr. 1, 2007–Jun. 30, 2007

Jul. 1, 2007–Sep. 30, 2007

Oct. 1, 2007–Dec. 31, 2007

Jan. 1, 2008–Mar. 31, 2008

Apr. 1, 2008–Jun. 30, 2008

Jul. 1, 2008–Sep. 30, 2008

Oct. 1, 2008–Dec. 31, 2008

Bulletin No. 2025–13

OVERPAYMENTS

1995-1 C.B.

RATE

TABLE

1249

571

573

621

623

575

573

571

569

567

565

613

615

613

615

567

569

571

573

619

617

615

617

UNDERPAYMENTS

1995-1 C.B.

RATE

TABLE

573

575

623

625

577

575

573

571

569

567

615

617

615

617

569

571

573

575

621

619

617

619

March 24, 2025

Jan. 1, 2009–Mar. 31, 2009

Apr. 1, 2009–Jun. 30, 2009

Jul. 1, 2009–Sep. 30, 2009

Oct. 1, 2009–Dec. 31, 2009

Jan. 1, 2010–Mar. 31, 2010

Apr. 1, 2010–Jun. 30, 2010

Jul. 1, 2010–Sep. 30, 2010

Oct. 1, 2010–Dec. 31, 2010

Jan. 1, 2011–Mar. 31, 2011

Apr. 1, 2011–Jun. 30, 2011

Jul. 1, 2011–Sep. 30, 2011

Oct. 1, 2011–Dec. 31, 2011

Jan. 1, 2012–Mar. 31, 2012

Apr. 1, 2012–Jun. 30, 2012

Jul. 1, 2012–Sep. 30, 2012

Oct. 1, 2012–Dec. 31, 2012

Jan. 1, 2013–Mar. 31, 2013

Apr. 1, 2013–Jun. 30, 2013

Jul. 1, 2013–Sep. 30, 2013

Oct. 1, 2013–Dec. 31, 2013

Jan. 1, 2014–Mar. 31, 2014

Apr. 1, 2014–Jun. 30, 2014

Jul. 1, 2014–Sep. 30, 2014

Oct. 1, 2014–Dec. 31, 2014

Jan. 1, 2015–Mar. 31, 2015

Apr. 1, 2015–Jun. 30, 2015

Jul. 1, 2015–Sep. 30, 2015

Oct. 1, 2015–Dec. 31, 2015

Jan. 1, 2016–Mar. 31, 2016

Apr. 1, 2016–Jun. 30, 2016

Jul. 1, 2016–Sep. 30, 2016

Oct. 1, 2016–Dec. 31, 2016

Jan. 1, 2017–Mar. 31, 2017

Apr. 1, 2017–Jun. 30, 2017

Jul. 1, 2017–Sep. 30, 2017

Oct. 1, 2017–Dec. 31, 2017

Jan. 1, 2018–Mar. 31, 2018

Apr. 1, 2018–Jun. 30, 2018

Jul. 1, 2018–Sep. 30, 2018

Oct. 1, 2018–Dec. 31, 2018

Jan. 1, 2019–Mar. 31, 2019

Apr. 1, 2019–Jun. 30, 2019

Jul. 1, 2019–Sep. 30, 2019

Oct. 1, 2019–Dec. 31, 2019

Jan. 1, 2020–Mar. 31, 2020

March 24, 2025

1250

567

565

563

565

563

611

563

611

613

565

567

569

567

615

569

567

565

567

565

613

565

613

615

567

569

571

569

617

Bulletin No. 2025–13

Apr. 1, 2020–Jun. 30, 2020

Jul. 1, 2020–Sep. 30, 2020

Oct. 1, 2020–Dec. 31, 2020

Jan. 1, 2021–Mar. 31, 2021

Apr. 1, 2021–Jun. 30, 2021

Jul. 1, 2021–Sep. 30, 2021

Oct. 1, 2021–Dec. 31, 2021

Jan. 1, 2022–Mar. 31, 2022

Apr. 1, 2022–Jun. 30, 2022

Jul. 1, 2022–Sep. 30, 2022

Oct. 1, 2022–Dec. 31, 2022

Jan. 1, 2023–Mar. 31, 2023

Apr. 1, 2023–Jun. 30, 2023

Jul. 1, 2023–Sep. 30, 2023

Oct. 1, 2023–Dec. 31, 2023

Jan. 1, 2024–Mar. 31, 2024

Apr. 1, 2024–Jun. 30, 2024

Jul. 1, 2024–Sep. 30, 2024

Oct. 1, 2024–Dec. 31, 2024

Jan. 1, 2025–Mar. 31, 2025

Apr. 1, 2025–Jun. 30, 2025

Bulletin No. 2025–13

1251

615

611

563

565

567

569

571

573

621

571

617

613

565

567

569

571

573

575

623

573

March 24, 2025

TABLE OF INTEREST RATES

FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 – PRESENT

Jan. 1, 1991–Mar. 31, 1991

Apr. 1, 1991–Jun. 30, 1991

Jul. 1, 1991–Sep. 30, 1991

Oct. 1, 1991–Dec. 31, 1991

Jan. 1, 1992–Mar. 31, 1992

Apr. 1, 1992–Jun. 30, 1992

Jul. 1, 1992–Sep. 30, 1992

Oct. 1, 1992–Dec. 31, 1992

Jan. 1, 1993–Mar. 31, 1993

Apr. 1, 1993–Jun. 30, 1993

Jul. 1, 1993–Sep. 30, 1993

Oct. 1, 1993–Dec. 31, 1993

Jan. 1, 1994–Mar. 31, 1994

Apr. 1, 1994–Jun. 30, 1994

Jul. 1, 1994–Sep. 30, 1994

Oct. 1, 1994–Dec. 31, 1994

Jan. 1, 1995–Jun. 30, 1995

Apr. 1, 1995–Jun. 30, 1995

Jul. 1, 1995–Sep. 30, 1995

Oct. 1, 1995–Dec. 31, 1995

Jan. 1, 1996–Mar. 31, 1996

Apr. 1, 1996–Jun. 30, 1996

Jul. 1, 1996–Sep. 30, 1996

Oct. 1, 1996–Dec. 31, 1996

Jan. 1, 1997–Mar. 31, 1997

Apr. 1, 1997–Jun. 30, 1997

Jul. 1, 1997–Sep. 30, 1997

Oct. 1, 1997–Dec. 31, 1997

Jan. 1, 1998–Mar. 31, 1998

Apr. 1, 1998–Jun. 30, 1998

Jul. 1, 1998–Sep. 30, 1998

Oct. 1, 1998–Dec. 31, 1998

Jan. 1, 1999–Mar. 31, 1999

Apr. 1, 1999–Jun. 30, 1999

Jul. 1, 1999–Sep. 30, 1999

Oct. 1, 1999–Dec. 31, 1999

Jan. 1, 2000–Mar. 31, 2000

Apr. 1, 2000–Jun. 30, 2000

Jul. 1, 2000–Sep. 30, 2000

Oct. 1, 2000–Dec. 31, 2000

Jan. 1, 2001–Mar. 31, 2001

RATE

13%

12%

11%

10%

11%

12%

11%

10%

11%

10%

11%

March 24, 2025

1252

1995-1 C.B.

TABLE

585

583

629

627

625

577

579

581

583

581

629

627

629

581

579

577

579

627

629

581

Bulletin No. 2025–13

Apr. 1, 2001–Jun. 30, 2001

Jul. 1, 2001–Sep. 30, 2001

Oct. 1, 2001–Dec. 31, 2001

Jan. 1, 2002–Mar. 31, 2002

Apr. 1, 2002–Sep. 30, 2002

Jul. 1, 2002–Sep. 30, 2002

Oct. 1, 2002–Dec. 31, 2002

Jan. 1, 2003–Mar. 31, 2003

Apr. 1, 2003–Jun. 30, 2003

Jul. 1, 2003–Sep. 30, 2003

Oct. 1, 2003–Dec. 31, 2003

Jan. 1, 2004–Mar. 31, 2004

Apr. 1, 2004–Jun. 30, 2004

Jul. 1, 2004–Sep. 30, 2004

Oct. 1, 2004–Dec. 31, 2004

Jan. 1, 2005–Mar. 31, 2005

Apr. 1, 2005–Jun. 30, 2005

Jul. 1, 2005–Sep. 30, 2005

Oct. 1, 2005–Dec. 31, 2005

Jan. 1, 2006–Mar. 31, 2006

Apr. 1, 2006–Jun. 30, 2006

Jul. 1, 2006–Sep. 30, 2006

Oct. 1, 2006–Dec. 31, 2006

Jan. 1, 2007–Mar. 31, 2007

Apr. 1, 2007–Jun. 30, 2007

Jul. 1, 2007–Sep. 30, 2007

Oct. 1, 2007–Dec. 31, 2007

Jan. 1, 2008–Mar. 31, 2008

Apr. 1, 2008–Sep. 30, 2008

Jul. 1, 2008–Sep. 30, 2008

Oct. 1, 2008–Dec. 31, 2008

Jan. 1, 2009–Mar. 31, 2009

Apr. 1, 2009–Jun. 30, 2009

Jul. 1, 2009–Sep. 30, 2009

Oct. 1, 2009–Dec. 31, 2009

Jan. 1, 2010–Mar. 31, 2010

Apr. 1, 2010–Jun. 30, 2010

Jul. 1, 2010–Sep. 30, 2010

Oct. 1, 2010–Dec. 31, 2010

Jan. 1, 2011–Mar. 31, 2011

Apr. 1, 2011–Jun. 30, 2011

Jul. 1, 2011–Sep. 30, 2011

Oct. 1, 2011–Dec. 31, 2011

Jan. 1, 2012–Mar. 31, 2012

Apr. 1, 2012–Jun. 30, 2012

10%

Bulletin No. 2025–13

1253

579

577

575

573

571

619

621

619

621

573

575

577

579

625

623

621

623

573

571

569

571

569

617

March 24, 2025

Jul. 1, 2012–Sep. 30, 2012

Oct. 1, 2012–Dec. 31, 2012

Jan. 1, 2013–Mar. 31, 2013

Apr. 1, 2013–Jun. 30, 2013

Jul. 1, 2013–Sep. 30, 2013

Oct. 1, 2013–Dec. 31, 2013

Jan. 1, 2014–Mar. 31, 2014

Apr. 1, 2014–Jun. 30, 2014

Jul. 1, 2014–Sep. 30, 2014

Oct. 1, 2014–Dec. 31, 2014

Jan. 1, 2015–Mar. 31, 2015

Apr. 1, 2015–Jun. 30, 2015

Jul. 1, 2015–Sep. 30, 2015

Oct. 1, 2015–Dec. 31, 2015

Jan. 1, 2016–Mar. 31, 2016

Apr. 1, 2016–Jun. 30, 2016

Jul. 1, 2016–Sep. 30, 2016

Oct. 1, 2016–Dec. 31, 2016

Jan. 1, 2017–Mar. 31, 2017

Apr. 1, 2017–Jun. 30, 2017

Jul. 1, 2017–Sep. 30, 2017

Oct. 1, 2017–Dec. 31, 2017

Jan. 1, 2018–Mar. 31, 2018

Apr. 1, 2018–Jun. 30, 2018

Jul. 1, 2018–Sep. 30, 2018

Oct. 1, 2018–Dec. 31, 2018

Jan. 1, 2019–Mar. 31, 2019

Apr. 1, 2019–Jun. 30, 2019

Jul. 1, 2019–Sep. 30, 2019

Oct. 1, 2019–Dec. 31, 2019

Jan. 1, 2020–Mar. 31, 2020

Apr. 1, 2020–Jun. 30, 2020

Jul. 1, 2020–Sep. 30, 2020

Oct. 1, 2020–Dec. 31, 2020

Jan. 1, 2021–Mar. 31, 2021

Apr. 1, 2021–Jun. 30, 2021

Jul. 1, 2021–Sep. 30, 2021

Oct. 1, 2021–Dec. 31, 2021

Jan. 1, 2022–Mar. 31, 2022

Apr. 1, 2022–Jun. 30, 2022

Jul. 1, 2022–Sep. 30, 2022

Oct. 1, 2022–Dec. 31, 2022

Jan. 1, 2023–Mar. 31, 2023

Apr. 1, 2023–Jun. 30, 2023

Jul. 1, 2023–Sep. 30, 2023

March 24, 2025

1254

617

569

617

619

571

573

575

573

621

617

569

571

573

575

577

Bulletin No. 2025–13

Oct. 1, 2023–Dec. 31, 2023

Jan. 1, 2024–Mar. 31, 2024

Apr. 1, 2024–Jun. 30, 2024

Jul. 1, 2024–Sep. 30, 2024

Oct. 1, 2024–Dec. 31, 2024

Jan. 1, 2025–Mar. 31, 2025

Apr. 1, 2025–Jun. 30, 2025

10%

Bulletin No. 2025–13

1255

579

627

577

March 24, 2025

TABLE OF INTEREST RATES FOR CORPORATE

OVERPAYMENTS EXCEEDING $10,000

FROM JANUARY 1, 1995 – PRESENT

1995-1 C.B.

RATE

TABLE

Jan. 1, 1995–Mar. 31, 1995

6.5%

572

Apr. 1, 1995–Jun. 30, 1995

7.5%

574

Jul. 1, 1995–Sep. 30, 1995

6.5%

572

Oct. 1, 1995–Dec. 31, 1995

6.5%

572

Jan. 1, 1996–Mar. 31, 1996

6.5%

620

Apr. 1, 1996–Jun. 30, 1996

5.5%

618

Jul. 1, 1996–Sep. 30, 1996

6.5%

620

Oct. 1, 1996–Dec. 31, 1996

6.5%

620

Jan. 1, 1997–Mar. 31, 1997

6.5%

572

Apr. 1, 1997–Jun. 30, 1997

6.5%

572

Jul. 1, 1997–Sep. 30, 1997

6.5%

572

Oct. 1, 1997–Dec. 31, 1997

6.5%

572

Jan. 1, 1998–Mar. 31, 1998

6.5%

572

Apr. 1, 1998–Jun. 30, 1998

5.5%

570

Jul. 1, 1998–Sep. 30, 1998

5.5%

570

Oct. 1, 1998–Dec. 31, 1998

5.5%

570

Jan. 1, 1999–Mar. 31, 1999

4.5%

568

Apr. 1, 1999–Sep. 30, 1999

5.5%

570

Jul. 1, 1999–Sep. 30, 1999

5.5%

570

Oct. 1, 1999–Dec. 31, 1999

5.5%

570

Jan. 1, 2000–Mar. 31, 2000

5.5%

618

Apr. 1, 2000–Jun. 30, 2000

6.5%

620

Jul. 1, 2000–Sep. 30, 2000

6.5%

620

Oct. 1, 2000–Dec. 31, 2000

6.5%

620

Jan. 1, 2001–Mar. 31, 2001

6.5%

572

Apr. 1, 2001–Jun. 30, 2001

5.5%

570

Jul. 1, 2001–Sep. 30, 2001

4.5%

568

Oct. 1, 2001–Dec. 31, 2001

4.5%

568

Jan. 1, 2002–Mar. 31, 2002

3.5%

566

Apr. 1, 2002–Jun. 30, 2002

3.5%

566

Jul. 1, 2002–Sep. 30, 2002

3.5%

566

Oct. 1, 2002–Dec. 31, 2002

3.5%

566

Jan. 1, 2003–Mar. 31, 2003

2.5%

564

Apr. 1, 2003–Jun. 30, 2003

2.5%

564

Jul. 1, 2003–Sep. 30, 2003

2.5%

564

Oct. 1, 2003–Dec. 31, 2003

1.5%

562

Jan. 1, 2004–Mar. 31, 2004

1.5%

610

Apr. 1, 2004–Jun. 30, 2004

2.5%

612

March 24, 2025

1256

Bulletin No. 2025–13

Jul. 1, 2004–Sep. 30, 2004

1.5%

610

Oct. 1, 2004–Dec. 31, 2004

2.5%

612

Jan. 1, 2005–Mar. 31, 2005

2.5%

564

Apr. 1, 2005–Jun. 30, 2005

3.5%

566

Jul. 1, 2005–Sep. 30, 2005

3.5%

566

Oct. 1, 2005–Dec. 31, 2005

4.5%

568

Jan. 1, 2006–Mar. 31, 2006

4.5%

568

Apr. 1, 2006–Jun. 30, 2006

4.5%

568

Jul. 1, 2006–Sep. 30, 2006

5.5%

570

Oct. 1, 2006–Dec. 31, 2006

5.5%

570

Jan. 1, 2007–Mar. 31, 2007

5.5%

570

Apr. 1, 2007–Jun. 30, 2007

5.5%

570

Jul. 1, 2007–Sep. 30, 2007

5.5%

570

Oct. 1, 2007–Dec. 31, 2007

5.5%

570

Jan. 1, 2008–Mar. 31, 2008

4.5%

616

Apr. 1, 2008–Jun. 30, 2008

3.5%

614

Jul. 1, 2008–Sep. 30, 2008

2.5%

612

Oct. 1, 2008–Dec. 31, 2008

3.5%

614

Jan. 1, 2009–Mar. 31, 2009

2.5%

564

Apr. 1, 2009–Jun. 30, 2009

1.5%

562

Jul. 1, 2009–Sep. 30, 2009

1.5%

562

Oct. 1, 2009–Dec. 31, 2009

1.5%

562

Jan. 1, 2010–Mar. 31, 2010

1.5%

562

Apr. 1, 2010–Jun. 30, 2010

1.5%

562

Jul. 1, 2010–Sep. 30, 2010

1.5%

562

Oct. 1, 2010–Dec. 31, 2010

1.5%

562

Jan. 1, 2011–Mar. 31, 2011

0.5%*

Apr. 1, 2011–Jun. 30, 2011

1.5%

562

Jul. 1, 2011–Sep. 30, 2011

1.5%

562

Oct. 1, 2011–Dec. 31, 2011

0.5%*

Jan. 1, 2012–Mar. 31, 2012

0.5%*

Apr. 1, 2012–Jun. 30, 2012

0.5%*

Jul. 1, 2012–Sep. 30, 2012

0.5%*

Oct. 1, 2012–Dec. 31, 2012

0.5%*

Jan. 1, 2013–Mar. 31, 2013

0.5%*

Apr. 1, 2013–Jun. 30, 2013

0.5%*

Jul. 1, 2013–Sep. 30, 2013

0.5%*

Oct. 1, 2013–Dec. 31, 2013

0.5%*

Jan. 1, 2014–Mar. 31, 2014

0.5%*

Apr. 1, 2014–Jun. 30, 2014

0.5%*

Jul. 1, 2014–Sep. 30, 2014

0.5%*

Oct. 1, 2014–Dec. 31, 2014

0.5%*

Bulletin No. 2025–13

1257

March 24, 2025

Jan. 1, 2015–Mar. 31, 2015

0.5%*

Apr. 1, 2015–Jun. 30, 2015

0.5%*

Jul. 1, 2015–Sep. 30, 2015

0.5%*

Oct. 1, 2015–Dec. 31, 2015

0.5%*

Jan. 1, 2016–Mar. 31, 2016

0.5%*

Apr. 1, 2016–Jun. 30, 2016

1.5%

610

Jul. 1, 2016–Sep. 30, 2016

1.5%

610

Oct. 1, 2016–Dec. 31, 2016

1.5%

610

Jan. 1, 2017–Mar. 31, 2017

1.5%

562

Apr. 1, 2017–Jun. 30, 2017

1.5%

562

Jul. 1, 2017–Sep. 30, 2017

1.5%

562

Oct. 1, 2017–Dec. 31, 2017

1.5%

562

Jan. 1, 2018–Mar. 31, 2018

1.5%

562

Apr. 1, 2018–Jun. 30, 2018

2.5%

564

Jul. 1, 2018–Sep. 30, 2018

2.5%

564

Oct. 1, 2018–Dec. 31, 2018

2.5%

564

Jan. 1, 2019–Mar. 31, 2019

3.5%

566

Apr. 1, 2019–Jun. 30, 2019

3.5%

566

Jul. 1, 2019–Sep. 30, 2019

2.5%

564

Oct. 1, 2019–Dec. 31, 2019

2.5%

564

Jan. 1, 2020–Mar. 31, 2020

2.5%

612

Apr. 1, 2020–Jun. 30, 2020

2.5%

612

Jul. 1, 2020–Sep. 30, 2020

0.5%*

Oct. 1, 2020–Dec. 31, 2020

0.5%*

Jan. 1, 2021–Mar. 31, 2021

0.5%*

Apr. 1, 2021–Jun. 30, 2021

0.5%*

Jul. 1, 2021–Sep. 30, 2021

0.5%*

Oct. 1, 2021–Dec. 31, 2021

0.5%*

Jan. 1, 2022–Mar. 31, 2022

0.5%*

Apr. 1, 2022–Jun. 30, 2022

1.5%

562

Jul. 1, 2022–Sep. 30, 2022

2.5%

564

Oct. 1, 2022–Dec. 31, 2022

3.5%

566

Jan. 1, 2023–Mar. 31, 2023

4.5%

568

Apr. 1, 2023–Jun. 30, 2023

4.5%

568

Jul. 1, 2023–Sep. 30, 2023

4.5%

568

Oct. 1, 2023–Dec. 31, 2023

5.5%

570

Jan. 1, 2024–Mar. 31, 2024

5.5%

618

Apr. 1, 2024–Jun. 30, 2024

5.5%

618

Jul. 1, 2024–Sep. 30, 2024

5.5%

618

Oct. 1, 2024–Dec. 31, 2024

5.5%

618

Jan. 1, 2025–Mar. 31, 2025

4.5%

568

Apr. 1, 2025–Jun. 30, 2025

4.5%

568

* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent published in Appendix A of

this Revenue Ruling.

March 24, 2025

1258

Bulletin No. 2025–13

26 CFR 1.45V-1; 26 CFR 1.45V-2; 26 CFR 1.45V-4;

26 CFR 1.45V-5; 26 CFR 1.45V-6

T.D. 10023

DEPARTMENT OF THE

TREASURY

Internal Revenue Service

26 CFR Part 1

Credit for Production

of Clean Hydrogen and

Energy Credit

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains

final regulations implementing the credit

for production of clean hydrogen and

certain provisions of the energy credit as

enacted by the Inflation Reduction Act

of 2022. The regulations provide rules

for: determining lifecycle greenhouse gas

emissions rates resulting from hydrogen

production processes; petitioning for provisional emissions rates; verifying production and sale or use of clean hydrogen;

modifying or retrofitting existing qualified clean hydrogen production facilities;

using electricity from certain renewable or

zero-emissions sources to produce qualified clean hydrogen; and electing to treat

part of a specified clean hydrogen production facility instead as property eligible

for the energy credit. These regulations

affect all taxpayers who produce qualified

clean hydrogen and claim the clean hydrogen 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.

DATES: Effective date: These regulations

are effective January 10, 2025.

Applicability dates: For dates of applicability, see §§1.45V-1(d), 1.45V-2(d),

1.45V-4(g), 1.45V-5(l), 1.45V-6(d), and

1.48-15(h).

Bulletin No. 2025–13

FOR FURTHER INFORMATION

CONTACT: Courtney Hutson at (202)

317-5319 or Alan Tilley at (202) 3176512 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Authority

This document contains final regulations that amend the Income Tax Regulations (26 CFR Part 1) by adding regulations authorized to be issued by the

Secretary of the Treasury or her delegate

(Secretary) under sections 48 and 45V

of the Internal Revenue Code (Code).

The final regulations are issued under the

authority granted under sections 45V(c)

(1)(B), 45V(e)(5), 45V(f), 48(a)(15)

(C), 48(a)(15)(E), 48(a)(16), 6001, and

7805(a) of the Code.

Section 45V(c)(1)(B) provides that

lifecycle greenhouse gas emissions (lifecycle GHG emissions) shall only include

emissions through the point of production

(well-to-gate), as determined under the

most recent Greenhouse gases, Regulated

Emissions, and Energy use in Transportation model (commonly referred to as the

“GREET model”) developed by Argonne

National Laboratory, or a successor model

(as determined by the Secretary).

Section 45V(e)(5) directs the Secretary

to issue regulations and guidance as she

determines to be necessary to carry out the

purposes of section 45V(e), which relates

to the increased credit amount for qualified clean hydrogen production facilities

that satisfy certain prevailing wage and

apprenticeship requirements.

Further, section 45V(f) directs the Secretary to issue regulations or other guidance to carry out the purposes of section

45V, including for determining lifecycle

GHG emissions.

Section 48(a)(15)(C) provides that the

term “specified clean hydrogen production 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

1259

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 produce under section 48(a)(15)(A)(ii).

Section 48(a)(15)(E) directs the Secretary to issue such regulations or other

guidance as she determines necessary to

carry out the purposes of the section 48

energy credit, including regulations or

guidance related to the recapture of such

credit that exceeds the allowed amount “if

the expected production were consistent

with the actual verified production (or all

of the credit so allowed in the absence of

such verification).”

Section 48(a)(16) directs the Secretary

to issue regulations or other guidance as

she determines necessary to carry out the

purposes of the section 48 energy credit,

including for recordkeeping or information reporting requirements necessary for

the administration of the credit.

Section 6001 provides an express delegation of authority to the Secretary, stating that, “[e]very person liable for any tax

imposed by this title, or for the collection

thereof, shall keep such records, render

such statements, make such returns, and

comply with such rules and regulations

as the Secretary may from time to time

prescribe. Whenever in the judgment of

the Secretary it is necessary, [s]he may

require any person, by notice served upon

such person or by regulations, to make

such returns, render such statements, or

keep such records, as the Secretary deems

sufficient to show whether or not such person is liable for tax under this title.”

These regulations are also issued

under the express delegation of authority

under section 7805(a), which provides that

“[t]he Secretary shall prescribe all needful

rules and regulations for the enforcement

of [the Code], including all rules and regulations as may be necessary by reason of

any alteration of law in relation to internal

revenue.”

Background

This document contains final regulations to implement the statutory provisions of sections 45V and 48(a)(15) of

the Code, as enacted by section 13204 of

Public Law 117-169, 136 Stat. 1818, 1935

March 24, 2025

(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 provisions, and part III describes the proposed

regulations promulgated under these provisions that the final regulations in this

document adopt or modify as explained in

the Summary of Comments and Explanation of Revisions.

I. IRA Provisions for Clean Hydrogen

Production and Investment

This part I describes the credit for production 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 unrelated person during the taxable year if the

electricity is used by the taxpayer or a

related person at a qualified clean hydrogen production facility to produce qualified clean hydrogen.

A. Section 45V

1. Amount of Credit

Section 45V provides an income tax

credit for the production of qualified clean

hydrogen. For purposes of section 38, 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 during such

taxable year at a qualified clean hydrogen

production facility during the 10-year

period beginning on the date such facility was originally placed in service, 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 applicable 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 applicable percentage is determined based on

the lifecycle GHG emissions rate of the

process used to produce any qualified

clean hydrogen as follows: (i) if the lifecycle GHG emissions 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 lifecycle GHG emissions rate is

less than 1.5 kilograms of CO2e per kilogram of hydrogen, 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(b)(1) is

adjusted by multiplying such amount by

the inflation adjustment factor (as determined under section 45(e)(2), determined

by substituting “2022” for “1992” in section 45(e)(2)(B)) for the calendar year in

which the qualified clean hydrogen is produced. If any amount as increased under

section 45V(b)(3) is not a multiple of 0.1

cent, such amount is rounded to the nearest multiple of 0.1 cent.1

Section 45V(e)(1) provides that, in the

case of any qualified clean hydrogen production facility that satisfies the requirements 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) (determined 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

construction before January 29, 2023, and

with respect to any taxable year, for any

portion 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 section 45V(e)(3)(A) are met for any alteration or repair of the facility that occurs

after January 29, 2023 (to the extent applicable);2 or (ii) the facility satisfies the prevailing wage and apprenticeship (PWA)

requirements of section 45V(e)(3)(A) and

(4).3

Generally, the prevailing wage requirements under section 45V(e)(3)(A) with

respect to any qualified clean hydrogen

production facility require the taxpayer

to ensure that any laborers and mechanics employed by the taxpayer or by any

contractor or subcontractor in (i) the construction of such facility, and (ii) with

respect to any taxable year, for any portion of such taxable year 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 prevailing 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

The IRS will publish the inflation-adjusted section 45V applicable amount annually. The section 45V applicable amounts for calendar years 2023 and 2024 were published in Notice 202445, 2024-26 I.R.B. 1747.

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.

See §§1.45-7, 1.45-8, 1.45-12, and 1.45V-3, as published in the Federal Register (89 FR 53184) on June 25, 2024.

March 24, 2025

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Bulletin No. 2025–13

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)(B).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 45V(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 taking into account any inflation adjustment

under section 45V(b)(3)), depending on

the lifecycle GHG emissions rate associated with the facility’s hydrogen production 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 (wellto-gate), as determined under the most

recent Greenhouse gases, Regulated

Emissions, and Energy use in Transportation model, referred to as the “GREET

model” commonly and in this document,

developed by Argonne National Laboratory, or a successor model as determined

by the 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 kilograms

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 United States territory (having the meaning of the term “possession”

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 hydrogen may file

a petition with the Secretary for a determination of the lifecycle GHG emissions rate

with respect to such hydrogen, referred to

as a “provisional emissions rate” or PER.

d. Qualified Clean Hydrogen Production

Facility

Section 45V(c)(3) provides that 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, 2033.5

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. Section 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 proportion 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 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. Section 45V(d)(3) is effective for facilities

that begin construction after August 16,

2022. See §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 application of section 45(b)(1) and (2) regarding 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 denominator of which is the aggregate amount of

additions to the capital account for the

qualified facility for the taxable year and

Under §1.45V-3, the PWA requirements for purposes of section 45V(e)(2)(B) are satisfied if a facility meets the prevailing wage requirements of section 45(b)(7) and §1.45-7, the apprenticeship requirements of section 45(b)(8) and §1.45-8, and the recordkeeping and reporting requirements of §1.45-12. Those regulations are not a part of this Treasury decision and §1.45V-3

is addressed only to the extent necessary for purposes of formatting the final regulations that are the subject of this decision in accordance with CFR standards.

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 for the section 45V credit.

However, the section 45V credit is available for qualified clean hydrogen produced after December 31, 2022. See §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.

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March 24, 2025

all prior taxable years. Section 45(b)(3)

further provides that the amounts determined under section 45(b)(3) for any taxable 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 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 (B) after the date such facility was

originally placed in service (i) is modified to produce qualified clean hydrogen,

and (ii) amounts paid or incurred with

respect to such modification are properly

chargeable to the capital account of the

taxpayer, such facility is deemed to have

been originally placed in service as of the

date the property required to complete

the modification 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

§13204(a)(5)(C) of the IRA.

B. Electricity Used at a Qualified Clean

Hydrogen Production Facility

Section 45(e)(13) provides that

electricity 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 third party. Section 45(e)

(13) is effective for electricity produced

after December 31, 2022. See §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. Generally, section 45U is effective for electricity produced at a qualified nuclear power

facility and sold after December 31, 2023,

in taxable years beginning after that date.

March 24, 2025

C. Election To Treat Clean Hydrogen

Production Facilities as Energy Property

tion facility or any carbon capture equipment included at such facility.

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 production 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 section 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 section 48(a)(9)(B) (regarding application

of certain maximum net output levels of

electrical or thermal energy or prevailing wage and apprenticeship requirements). However, the domestic content

and energy communities bonuses under

section 48(a)(12) and (14) do not apply

to a specified clean hydrogen production

facility.

Section 48(a)(15) is effective for property placed in service after December

31, 2022, and for any property the construction of which began before January

1, 2023, only to the extent of the basis

thereof attributable to construction, reconstruction, or erection after December 31,

2022. See §13204(c)(3) of the IRA.

2. Specified Clean Hydrogen Production

Facility

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-

1262

Section 48(a)(15)(C) provides that the

term “specified clean hydrogen production 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 produce 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 meaning given such term by section 45V(c)(2).

4. Regulations

Section 48(a)(15)(E) requires the Secretary to issue regulations or other guidance as she determines necessary to carry

out the purposes of section 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 production (or all of the

credit so allowed in the absence of verification).

II. Notice 2022-58

On November 3, 2022, the Department

of the Treasury (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 associated clean

hydrogen production and investment

incentives in sections 45 and 48. The

Bulletin No. 2025–13

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) recordkeeping

and reporting; (v) verification by unrelated parties; and (vi) coordination with

sections 45, 48, and 45Q. Stakeholders

submitted more than 200 comments in

response to Notice 2022-58, and those

comments informed the development of

the proposed regulations.

III. Proposed Regulations

On December 26, 2023, the Treasury

Department and the IRS published proposed regulations under sections 45V

and 48(a)(15) (REG-117631-23) in the

Federal Register (88 FR 89220) to provide guidance on the credit for production

of clean hydrogen and the energy credit,

respectively (proposed regulations). The

provisions of the proposed regulations are

explained in greater detail in the preamble

to the proposed regulations.

On April 11, 2024, the Treasury

Department and the IRS published a supplemental notice of proposed rulemaking

under sections 45V and 48(a)(15) in the

Federal Register (89 FR 25551) inviting comments on the U.S. Department of

Energy’s (DOE) information collection

related to the DOE’s Emissions Value

Request Process (EVRP) for use by applicants in obtaining an emissions value in

support of a petition for a PER, as set forth

in the proposed regulations. The EVRP is

explained in greater detail in the supplemental notice of proposed rulemaking. On

September 30, 2024, the DOE announced

the opening of the EVRP. See Notice of

Availability of the 45V Emissions Value

Request Process (89 FR 80898).

Summary of Comments and

Explanation of Revisions

This Summary of Comments and

Explanation of Revisions summarizes

the proposed regulations and all the substantive comments submitted in response

to the proposed regulations. The Treasury Department and the IRS received

approximately 30,000 written comments

in response to the proposed regulations.

The comments are available for public

inspection at www.regulations.gov or

upon request. A hearing was conducted in

person and telephonically on March 25,

26, and 27, 2024, during which approximately 100 individuals testified.6 After

full consideration of the hearing testimony

and the comments received, these final

regulations adopt the proposed regulations with modifications in response to the

comments described in this Summary of

Comments and Explanation of Revisions.

The Treasury Department and the IRS

also consulted extensively with scientific

and technical experts from across the Federal government, including personnel from

the DOE and the U.S. Environmental Protection Agency (EPA), in developing and

drafting these final regulations. The Treasury Department and the IRS had regular meetings with these experts from the

time that sections 45V and 48(a)(15) were

enacted through the drafting and publication of the proposed regulations and the

final regulations. The conclusions reached

in these final regulations and explained in

this Summary of Comments and Explanation of Revisions were deeply informed

by the scientific and technical expertise

that was shared by these experts.

Comments merely summarizing the

proposed regulations, expressing generic,

non-specific, or extraneous concerns,

recommending statutory revisions to sections 45V, 48(a)(15), or other statutes, or

addressing issues that do not pertain to

the purposes of sections 45V and 48(a)

(15) are not applicable to this rulemaking and are not adopted. Additionally,

except to the extent discussed in this

Summary of Comments and Explanation

of Revisions, comments addressing the

features of 45VH2-GREET or the contents of any supporting documentation

to be provided in seeking an emissions

value from the DOE are outside the scope

of this rulemaking and therefore are not

addressed herein.

I. General Rules and Definitions

Proposed §1.45V-1 provided definitions of key terms used in proposed

§§1.45V-1 through 1.45V-6 and 1.4815, to determine eligibility for, and the

amount of, the section 45V credit for

production of clean hydrogen. Comments

addressed several of the proposed definitions, as described in this part I.A of the

Summary of Comments and Explanation

of Revisions.

In addition, these final regulations add

the new terms “hydrogen gas stream,”

“mixed gas or impurity,” and “productive

use,” which are discussed in part I.A.5 of

the Summary of Comments and Explanation of Revisions, as well as the terms

“process” and “primary feedstock,” which

are discussed in part I.A.7. With respect

to the definition of “lifecycle GHG Emissions,” the final regulations add a new rule

for certain emissions related to purification treated as through the point of production, which is discussed in part I.A.6.d

of the Summary of Comments and Explanation of Revisions. The final regulations

renumber the definitions to incorporate

the added definitions.

A. Definitions

1. Applicable Amount

Section 45V(b)(1) defines applicable

amount, and section 45V(b)(3) provides

the inflation adjustment that applies when

calculating the applicable amount. Proposed §1.45V-1(a)(2) would have adopted

this definition and its related inflation

adjustment provision. No comments

addressed these provisions, and these final

regulations adopt them as proposed.

2. Applicable Percentage

Section 45V(b)(2) defines the term

“applicable

percentage.”

Proposed

§1.45V-1(a)(3) adopted this definition. No

comments addressed this provision, and

these final regulations adopt the definition

as proposed.

A comment requested that the Treasury Department and the IRS (1) hold additional public hearings in, at a minimum, each of the seven regions where hydrogen hubs have been proposed;

(2) provide virtual options for attending and presenting; and (3) clarify the process for participation at the public hearing. The Treasury Department and the IRS held a hearing over three days,

which provided the public an opportunity to present testimony either in person or over the telephone. Individuals, whether testifying or not, could attend the hearing either in person or by

telephone. Notice of the hearing was published as part of the proposed regulations in the Federal Register on December 26, 2023, which provided details to the public on how to participate.

Accordingly, the public was provided a meaningful opportunity to participate in the hearing process.

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March 24, 2025

3. Claim

Proposed §1.45V-1(a)(4) would have

provided that, with respect to the section

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 Hydrogen Production Credit, or any successor 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 section 6418 and the regulations thereunder, with respect to such section 45V

credit on the applicable entity’s or eligible

taxpayer’s timely filed (including extensions) Federal income tax return or annual

information return.

One comment requested that the final

regulations offer a streamlined process

to claim the section 45V credit for small

producers of hydrogen. Section 45V does

not make any distinction based on the size

of the hydrogen producer, and the importance of reporting and compliance are the

same regardless of the producer’s size.

Accordingly, providing a more streamlined process for claiming the section 45V

credit for small producers is not appropriate. Additionally, to clarify, section

1.45V-1(a)(4) has no effect on the procedures for making an election under section

6417 or 6418, the requirements for which

are described in the regulations for each

provision. For procedures for making an

election under section 6417, see §1.64172(b). For procedures for making an election under section 6418, see §1.6418-2.

Accordingly, section 1.45V-1(a)(4) is

adopted without change.

4. Facility

a. Equipment Included in the Definition

of Facility

Proposed §1.45V-1(a)(7)(i) would

have provided that, for purposes of the

definition of 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, unless otherwise

specified. Further, proposed §1.45V-1(a)

March 24, 2025

(7)(i) would have provided that a “single

production line” includes all components

of property that function interdependently

to produce qualified clean hydrogen.

Components of property would be functionally interdependent if the placing in

service of each component were dependent upon the placing in service of each of

the other components to produce qualified

clean hydrogen. Proposed §1.45V-1(a)(7)

(iii) would have provided that components

that have a purpose in addition to the production of qualified clean hydrogen may

be part of a facility if such components

function interdependently with other components to produce qualified clean hydrogen. Proposed §1.45V-1(a)(7)(iv) would

have provided an example to illustrate the

definition of facility for purposes of section 45V.

Comments asked a variety of questions

about the definition of “facility,” including whether specific equipment is part

of a facility. Some comments requested

clarification on the meaning of “single

production line” and “functional interdependence” and whether components

of a facility that produce hydrogen as a

by-product of another production process

are part of a “single production line” that

is used to produce hydrogen. Other comments asked for clarification on whether

designated spaces and equipment necessary for commercial operation, but not

necessary for hydrogen production (for

example, break rooms and lighting) are

part of the “facility.” Another comment

requested that the final regulations specify a method for allocating lifecycle GHG

emissions across multipurpose components. The comment suggested that, in

many cases, it would not be appropriate

to include, through the point of production, all lifecycle GHG emissions from

multipurpose components that are part of

the balance of plant, such as the cooling

tower or air compressor if the hydrogen

production process does not consume a

significant amount of energy from the use

of such equipment.

One comment recommended that the

final rules modify the definition of “facility” to include all electrolyzers within

the balance of plant to prevent hydrogen

producers from designating one electrolyzer as having produced hydrogen without energy attribute certificates (EACs)

1264

should a producer not have EACs sufficient to ensure all hydrogen produced at a

facility is qualified clean hydrogen.

Another comment asked whether

the definition of “facility” in proposed

§1.45V-1(a)(7) would create a “circular

loop” wherein the hydrogen producer

would need to identify the components of

the facility in order to obtain an emissions

rate under 45VH2-GREET, but could

not identify the components of the facility without knowing whether the facility

produces hydrogen at an emissions rate of

not greater than 4 kilograms of CO2e per

kilogram of hydrogen.

One comment requested clarification

that the definition of facility in proposed

§1.45V-1(a)(7) does not apply for purposes of the definition of “industrial facility” in §1.45Q-2(d).

One comment requested clarification

on whether a facility includes downstream

property that uses the hydrogen produced

at a qualified clean hydrogen production

facility. Similarly, one comment requested

clarification on whether hydrogen production equipment that is installed on the

property of an industrial plant or a gas

utility qualifies as a “facility.” Although

unclear, this comment appears to be

requesting clarification whether an existing industrial plant or gas utility becomes

a hydrogen production facility if hydrogen production equipment is added to the

existing plant or utility.

In response to these comments seeking clarification on what is included in the

definition of facility, these final regulations

modify proposed §1.45V-1(a)(7)(i) and

(iv), as well as §1.45V-1(a)(7)(ii), which

identifies equipment that is not included

in the definition of facility. Generally, the

definition of “facility” is sufficiently clear

as an established tax concept. The concept

of “functional interdependence” has been

used by courts for many years to decide

whether property was placed in service

for depreciation and the investment tax

credit. See, for example, Armstrong World

Industries, Inc. v. Commissioner, 974 F.2d

422, 434 (3d Cir. 1992) (“[C]ourts appear

to agree that individual components will

be considered as a single property for tax

purposes—when the component parts are

functionally interdependent when each

component is essential to the operation of

the project as a whole and cannot be used

Bulletin No. 2025–13

separately to any effect.”). The general

definition of facility in proposed §1.45V1(a)(7)(i) uses this “functional interdependence” concept by indicating that a

single production line includes all components of property that function interdependently to produce qualified clean

hydrogen. To ease the determination of

what equipment is included, the final regulations add to this definition the phrase

“through a process that results in the lifecycle GHG emissions rate used to determine the credit.” This clarifies that all

equipment used to produce the qualified

clean hydrogen for which the section 45V

credit is determined is included as part of

the qualified clean hydrogen facility. For

example, carbon capture equipment is part

of the facility if it contributes to the lifecycle GHG emissions rate of the process

by which the qualified clean hydrogen

for which the credit is determined is produced. In addition, these final regulations

update the example in §1.45V-1(a)(7)(iv)

to reflect the modifications made to the

text in §1.45V-1(a)(7)(i).

Purification equipment is part of the

facility if such equipment contributes to

the purity content of the qualified clean

hydrogen for which the section 45V credit

is determined. As discussed in part I.A.6.c

of this Summary of Comments and Explanation of Revisions, purification equipment that is used downstream of the facility’s process of producing qualified clean

hydrogen is not part of the facility, but

in certain circumstances, emissions from

such purification equipment are within

the well-to-gate system boundary for purposes of the lifecycle GHG emissions rate

analysis.

Regarding multipurpose components,

these final regulations adopt proposed

§1.45V-1(a)(7)(iii) with a clarification that

production is for qualified clean hydrogen. Proposed §1.45V-1(a)(7)(iii) already

clarifies that components can have multiple purposes, including but not limited to

the production of qualified clean hydrogen, so long as the components function

interdependently with other components

to produce qualified clean hydrogen. With

respect to the allocation of lifecycle GHG

emissions attributed to multipurpose components, taxpayers must use a reasonable

method to allocate the inputs used to

determine such emissions.

Bulletin No. 2025–13

To the extent a facility produces hydrogen as a by-product of another production

process, any components of the facility

that function interdependently to produce

qualified clean hydrogen—regardless of

whether they serve a purpose in addition

to the production of qualified clean hydrogen—are part of the qualified clean hydrogen production facility.

With respect to whether equipment

necessary for commercial operation, but

not for hydrogen production, is part of the

“facility” (such as break room lighting),

§1.45V-1(a)(7)(i) answers this question. If

the placing in service of such equipment

is not necessary to produce qualified clean

hydrogen and is not part of the process

that results in the lifecycle GHG emissions rate used to determine the credit,

such equipment does not function interdependently with the qualified clean hydrogen production equipment and is not part

of the “facility.” If such non-functionally

interdependent equipment draws from the

same electricity source as the facility, to

the extent it is separately metered, such

electricity usage would not be an input

into 45VH2-GREET. To the extent such

equipment is not separately metered, taxpayers must use a reasonable method to

allocate such electricity usage.

The final regulations do not adopt the

comment to revise the definition of “facility” to include all electrolyzers within the

balance of plant. Under §1.45V-1(a)(7)

(i), to the extent each electrolyzer produces qualified clean hydrogen separately

from the other electrolyzers (that is, does

not function interdependently with the

other electrolyzers), each electrolyzer is

treated as a separate facility. Treating each

electrolyzer within the balance of plant

as a separate facility is consistent with

Revenue Ruling 94-31, 1994-1 C.B. 16,

which held that each wind turbine within

a windfarm is a separate “qualified facility” under section 45 because each wind

turbine can be separately operated and

metered to produce electricity. Similar

to a wind turbine within a wind farm, an

electrolyzer within the balance of plant

functions separately from the other electrolyzers to produce hydrogen. As to the

concern that EACs may be shifted from

one electrolyzer to another electrolyzer

within the balance of plant, a hydrogen

producer is free to acquire and retire

1265

EACs for some electrolyzers and not for

others, no matter the production technology the electrolyzers use and no matter

the extent of their co-location, so long as

the retired EACs are matched to a particular electrolyzer’s electricity consumption

from which hydrogen is produced. Imposing a rule that co-located electrolyzers are

considered part of the same facility so that

they each receive an equal allocation of

EACs would not necessarily reflect each

electrolyzer’s electricity consumption and

would be inconsistent with existing tax

law’s treatment of the definition of “facility.”

In response to the comment that questioned whether the definition of “facility” in §1.45V-1(a)(7) creates a “circular

loop,” these final regulations modify proposed §1.45V-1(a)(7)(i) to provide that

equipment is part of the facility if it functions interdependently to produce qualified clean hydrogen through a process that

results in the lifecycle GHG emissions rate

used to determine the credit. The lifecycle

GHG emissions analysis of the hydrogen

production process is not coextensive

with the tax definition of a hydrogen production facility. For example, lifecycle

GHG emissions include emissions from

stages of the hydrogen production process

beyond the hydrogen production facility,

such as emissions from growth, gathering,

extraction, processing, and delivery of

feedstock to a hydrogen production facility. See section 45V(c)(1)(A) (defining

lifecycle GHG emissions by reference to

section 211(o)(1)(H) of the Clean Air Act)

and (B) (describing that lifecycle GHG

emissions include emissions through the

point of production (well-to-gate)); see

also Guidelines to Determine Well-toGate Greenhouse Gas (GHG) Emissions

of Hydrogen Production Pathways using

45VH2-GREET (45VH2-GREET User

Manual), § 2.4.1 (Emissions of Electricity

Generation), which can be found at www.

energy.gov/45vresources. The Summary

of Comments and Explanation of Revisions to these final regulations generally

refer to the 45VH2-GREET User Manual

as it is currently publicly available, but at

times references intended modifications

to it. As further discussed in the Summary of Comments and Explanation of

Revisions to these final regulations, the

DOE intends to release a new version of

March 24, 2025

45VH2-GREET with an accompanying

user manual in January 2025.

Regarding whether a “facility”

includes downstream property that uses

hydrogen produced at a qualified clean

hydrogen production facility, downstream property that does not contribute

to the facility’s process of producing

qualified clean hydrogen—but instead

only to the later use of such hydrogen

following its production—is not part of

the facility because it does not function

interdependently in the production of the

qualified clean hydrogen for which the

section 45V credit is determined. Further,

§1.45V-1(a)(7)(ii) provides that the facility does not include equipment used to

condition or transport hydrogen beyond

the point of production.

Regarding the effect of §1.45V-1(a)

(7) on the definition of industrial facility under §1.45Q-2(d), whether and the

extent to which the section 45V regulations affect terms defined in section 45Q

is a matter that falls within the scope of

section 45Q and is therefore not applicable to these regulations.

Regarding whether an industrial plant

or gas utility becomes part of the hydrogen

production “facility” when hydrogen production equipment is installed at the plant

or utility, such an inquiry will depend on

the facts and circumstances of the particular hydrogen production equipment

and whether such equipment functions

interdependently with the existing industrial plant or utility equipment to produce

hydrogen. Accordingly, these final regulations provide sufficient criteria to apply to

such an inquiry on a case-by-case basis.

b. Equipment Excluded from the

Definition of Facility

Proposed §1.45V-1(a)(7)(ii) would

have provided that a facility does not

include equipment used to condition or

transport hydrogen beyond the point of

production. Proposed §1.45V-1(a)(7)(ii)

also would have provided that a facility

does not include electricity production

equipment used to power the hydrogen

production process, including any carbon

capture equipment associated with the

electricity production process.

Some comments requested clarification

that a “facility” does not include upstream

March 24, 2025

facilities that generate and supply electricity, fuel, feedstock, water, ammonia, or

other inputs into or for use at the hydrogen production facility. Another comment

requested confirmation that a facility producing renewable natural gas (RNG) that

is supplied to a facility that uses the RNG

to produce hydrogen does not fall within

the definition of “facility.”

One comment recommended that the

final rules exclude from the definition

of “facility” any facility that includes an

electrolyzer stack that was assembled in

or by a “Covered Nation” as defined in 10

U.S.C. §4872(d)(2), or a “Foreign Entity

of Concern,” as referenced under §40207

of the Infrastructure Investment and Jobs

Act, Public Law 117-58.

The Treasury Department and the

IRS agree that clarification is needed on

whether feedstock production equipment

is part of the “facility.” In addition, clarification is needed on whether feedstock

recovery equipment is part of the “facility.” Although proposed §1.45V-1(a)(7)

(ii)(B) would have excluded electricity

production equipment from the definition

of “facility,” the proposed rules would not

have addressed other types of feedstock

production and recovery equipment,

such as RNG production equipment.

The intent of the proposed rules was to

exclude upstream feedstock production

and recovery equipment, such as RNG

production equipment, from the definition of facility. Accordingly, these final

regulations add “feedstock-related equipment, including production, purification,

recovery, transportation, or transmission

equipment” to the list of items excluded

from the definition of facility in §1.45V1(a)(7)(ii)(B). As discussed in this part

I.A.6.c of this Summary of Comments

and Explanation of Provisions, however,

lifecycle GHG emissions associated with

feedstock growth, gathering, extraction,

processing, and delivery to a hydrogen

production facility are still included in

the lifecycle GHG analysis reflected in

45VH2-GREET.

As to excluding components assembled in or by a “Covered Nation” or a

“Foreign Entity of Concern” from the

definition of facility, there is no provision

of section 45V that imposes such a rule,

so these final regulations do not adopt this

comment.

1266

5. Hydrogen Gas Stream, Mixed Gas or

Impurity, and Productive Use

The final regulations add three new

definitions, “hydrogen gas stream,” to

§1.45V-1(a)(8); “mixed gas or impurity,”

to §1.45V-1(a)(10); and “productive use”

to §1.45V-1(a)(12). The term “hydrogen

gas stream” means a flow of gases that

includes hydrogen, either alone or with

one or more other gases. The term “mixed

gas or impurity” means a non-hydrogen

gas that is part of a hydrogen gas stream.

The term “productive use” means, with

respect to a hydrogen gas stream, a consumption of the hydrogen gas stream in a

manner that generates positive economic

value, which is determined without regard

to the availability of the section 45V

credit. The term “productive use” means,

with respect to qualified clean hydrogen, a

consumption of qualified clean hydrogen

in a manner that generates positive economic value, which is determined without

regard to the availability of the section

45V credit. Positive economic value is

determined without regard to the section

45V credit, consistent with the anti-abuse

rule of §1.45V-2(b). Thus, for example, a

hydrogen gas stream produced with the

primary purpose of obtaining the benefit

of the section 45V credit in a wasteful

manner would not have a productive use.

All three terms are relevant to the rule

where certain emissions related to purification are treated as through point of production, described in part I.A.6.d of this

Summary of Comments and Explanation

of Revisions. The term “productive use”

also relates to the anti-abuse rule described

in part II.B of this Summary of Comments

and Explanation of Revisions.

6. Lifecycle GHG 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)) as in effect on

the date of enactment of section 45V. Section 45V(c)(1)(B) provides that the term

“lifecycle greenhouse gas emissions” only

includes emissions through the point of

production (well-to-gate), as determined

under the most recent GREET model,

Bulletin No. 2025–13

or a successor model (as determined by

the Secretary). Proposed §1.45V-1(a)(8)

would have defined “lifecycle GHG emissions.” The final regulations renumber

proposed §1.45V-1(a)(8) to §1.45V-1(a)

(9).

Proposed §1.45V-1(a)(8)(i) would

have incorporated the statutory definitions

provided in section 45V(c)(1)(A) and (B),

specifically providing that the term has the

same meaning as that in section 211(o)(1)

(H) of the Clean Air Act 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, or a successor model. These final regulations modify proposed §1.45V-1(a)(8)(i) to provide

that, for purposes of section 45V, lifecycle

GHG emissions are determined under the

45VH2-GREET Model. No comments

were received on §1.45V-1(a)(8)(i), and

this provision is adopted as renumbered

§1.45V-1(a)(9)(i) without further changes.

By reference to section 211(o)(1)(H) of

the Clean Air Act, section 45V(c)(1)(A)

requires a complete assessment of direct

and significant indirect emissions associated with a hydrogen production process.

After consultation with the DOE and the

EPA, the Treasury Department and the

IRS interpret section 45V(c)(1)(A) with

its reference to section 211(o)(1)(H) of

the Clean Air Act as excluding emissions

related to the manufacturing of the equipment within the hydrogen production

pathway (for example, power generators,

hydrogen production facility), from the

definition of lifecycle GHG emissions.

This interpretation is consistent with how

EPA has implemented section 211(o)(1)

(H) of the Clean Air Act for the Renewable Fuel Standard (RFS) program7.

a. Most Recent GREET Model

Proposed §1.45V-1(a)(8)(ii) would

have provided that, 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 and published by the

DOE, as provided in the instructions to the

latest version of Form 7210, Clean Hydrogen Production Credit, or any successor

form(s), on the first day of the taxable year

during which the qualified clean hydrogen

for which the taxpayer is claiming the section 45V credit was produced. Proposed

§1.45V-1(a)(8)(ii) would have further provided that, 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 could, in its discretion, treat such

later version of 45VH2-GREET as the

most recent GREET model.

Several comments recommended

changes to proposed §1.45V-1(a)(8)(ii).

Some comments requested that, instead

of identifying 45VH2-GREET as the

“most recent GREET model” under section 45V(c)(1)(B), the final regulations

identify the R&D GREET model developed by Argonne National Laboratory and

published by the DOE as the most recent

GREET model. Comments further recommended that the final regulations require

the use of 45VH2-GREET as a “successor model” only if 45VH2-GREET

closely aligns in function and principle

with the version of the R&D GREET

model as it existed at the time that section 45V was enacted. Other comments

supported 45VH2-GREET as the best

available open-source lifecycle analysis

methodology for determining lifecycle

GHG emissions for purposes of section

45V. Yet another comment recommended

that a model the comment had developed

should be able to be used as an alternative

to 45VH2-GREET.

Except for changing the nomenclature

of the “most recent GREET model” to the

“45VH2-GREET Model,” as further discussed in this part I.A.6.a of the Summary

of Comments and Explanation of Revisions, these final regulations do not adopt

the comments recommending changes to

proposed §1.45V-1(a)(8)(ii).

Though the Treasury Department

and the IRS continue to view 45VH2GREET as the most recent GREET model

for the reasons described in the pream-

ble to the proposed regulations and the

fact that it was developed more recently

than the R&D GREET model, the Treasury Department and the IRS recognize

that the continued existence of the R&D

GREET model and periodic updates

to both 45VH2-GREET and the R&D

GREET model have created some uncertainty in this regard. To avoid any potential uncertainty about the meaning of the

most recent GREET model, which would

be detrimental to the administration and

implementation of the section 45V credit,

the Secretary is invoking her express delegation of authority in section 45V(c)(1)

(B) to determine 45VH2-GREET to be a

“successor model” and to require its use.

In selecting 45VH2-GREET rather

than the R&D GREET model or some

other model, the Treasury Department and

the IRS considered the statutory definition

of lifecycle GHG emissions in section

211(o)(1)(H) of the Clean Air Act (as in

effect on August 16, 2022) and the specific

objectives of section 45V, and consulted

with the DOE. 45VH2-GREET best meets

these parameters. It is a model specifically

developed by the Argonne National Laboratory as a derivative of and successor to

the R&D GREET model, designed specifically to address hydrogen production processes and to meet the requirements and

objectives of section 45V.

The R&D GREET model has been

maintained by the DOE since 1995 to

enable research regarding lifecycle analyses of hundreds of different methods of

producing, delivering, and using energy.

The model includes many fuels other than

hydrogen (for example, biofuels, synthetic

fuels, fossil fuels, and electrification), and

includes information that is based on preliminary analyses (that is, analyses that

are not yet complete, have significant

technical uncertainties, or are still being

reviewed by laboratory staff, DOE staff,

or independent experts).8 Annual updates

to the model inform academic studies,

informally guide decarbonization strategies and research and development funded

by both the DOE and industry, and elicit

stakeholder feedback that can improve

Regulatory Impact Analysis, Renewable Fuel Standard Program, U.S. Environmental Protection Agency, EPA-420-R-10-10-006, at 311-312 (Feb. 2010), available at https://www.regulations.gov/document/EPA-HQ-OAR-2021-0324-0652.

See generally GREET, Office of Energy Efficiency & Renewable Energy, U.S. Department of Energy, available at https://www.energy.gov/eere/greet.

Bulletin No. 2025–13

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March 24, 2025

the model, particularly with regard to

preliminary pathways. R&D GREET is

a valuable tool to characterize the benefits and impacts of energy technologies in

a directional manner and to test out new

and updated data and parameters, but it is

not appropriate for use in analyses where

a relatively high degree of precision and

certainty is required, given the preliminary nature of much of the information

represented, and where specific emissions

fluxes and their representation are needed

in a specific fashion (for example, to meet

specifications within the statute). Moreover, because the R&D GREET model

offers users many choices regarding analysis methodology (for example, co-product accounting, system boundaries, and

global warming potential values), different users can achieve significantly different estimated GHG emissions rates even

when representing the same facility. Many

of these choices would not be appropriate in the specific context of the section

45V credit given the preliminary nature of

much of the data underlying aspects of the

R&D GREET model and the fact that the

model does not require the use of specific

methodologies and accounting parameters. Accordingly, R&D GREET does not

provide the degree of certainty, structure,

and specificity necessary to meet the statutory requirement of reflecting lifecycle

GHG emissions as defined by section

211(o)(1)(H) of the Clean Air Act (as in

effect on August 16, 2022), nor does it

meet the specific objectives of such section or of the section 45V credit.

In addition, implementation of the section 45V credit will be aided by a userfriendly model that characterizes the lifecycle GHG emissions rates of different

hydrogen production processes consistently, with high levels of confidence, and

with higher fidelity than R&D GREET,

and consistent with the requirements, purposes, and objectives of the section 45V

credit. The DOE directed the Argonne

National Laboratory to develop 45VH2GREET to meet three key parameters:

1) consistency of background assumptions for all users and across hydrogen

production processes, while enhancing

user friendliness, 2) technical robustness

of the processes, and 3) consistency with

the other requirements and purposes of

section 45V. Each of these parameters is

explained in additional detail as follows.

First, 45VH2-GREET facilitates consistent analyses across different processes

while enhancing user friendliness. While

R&D GREET allows users to simulate hundreds of different fuel pathways

(including but not limited to those that

involve hydrogen) and several different

system boundaries with different user-defined assumptions, 45VH2-GREET exclusively allows simulations of the well-togate emissions associated with hydrogen

production (as specified in section 45V(c)

(1)(B) and in alignment with these final

regulations). The simpler interface in

45VH2-GREET as compared to R&D

GREET ensures that the model is accessible to a broad range of taxpayers, including those without significant prior experience in lifecycle analysis or a GREET

model.

Second, 45VH2-GREET achieves

technical robustness across hydrogen production pathways. Hydrogen production

pathways represented in 45VH2-GREET

are a subset of those in R&D GREET and

were included following rigorous interagency review for technical fidelity and

alignment with the statute. While additional hydrogen production pathways

are available in R&D GREET, many are

preliminary in nature and inappropriate for analyses requiring relatively high

precision, data reliability, and analytical

rigor to support use in implementation of

the section 45V credit (as described previously in this part of the Summary of

Comments and Explanation of Revisions

and further in supporting documentation

to R&D GREET9). Implementation of the

section 45V credit necessitates the use of

lifecycle GHG emissions rate calculations

that are as precise and robust as feasible,

as section 45V(b)(2) provides differing

applicable percentages based on a range

of lifecycle GHG emissions rates and

section 45V(c)(2)(A) includes within the

definition of qualified clean hydrogen only

hydrogen produced with a lifecycle GHG

emissions rate below a threshold level.

Absent analytically robust emissions calculations, these final regulations would

fail to implement Congress’s directive

to incentivize qualified clean hydrogen

production, as distinguished among the

different applicable percentage brackets,

as well as fail to realize Congress’s underlying objective of crediting only qualified

clean hydrogen and providing greater

credit amounts to hydrogen produced with

lower lifecycle GHG emissions rates. As

data on and analyses of additional hydrogen production pathways in R&D GREET

become more robust, such pathways may

be incorporated into future versions of

45VH2-GREET.

Additionally, 45VH2-GREET was

developed to align with the text of section 45V, which requires that the credit

be based on the “lifecycle greenhouse

gas emissions” as defined under section

211(o)(1)(H) of the Clean Air Act, subject to the additional requirements of

section 45V(c)(1)(B), which references

the use of GREET or a successor model

as determined by the Secretary, and limits

the emissions estimates to “well-to-gate”

emissions. Lifecycle GHG emissions are

defined in section 211(o)(1)(H) of the

Clean Air Act to include both direct emissions and significant indirect emissions.

R&D GREET does not robustly account

for the variability in emissions estimates

of all potential significant indirect emissions of certain hydrogen production

pathways, particularly when representing

counterfactual scenarios. The model additionally does not address the risk of significant indirect emissions related to changes

in market behavior associated with the

incentives created by section 45V.10 The

proposed regulations therefore asked for

comments on lifecycle analysis (LCA)

Summary of Expansions and Updates in R&D GREET 2023 (2023), Argonne National Laboratory, available at https://greet.anl.gov/files/greet-2023-summary (R&D

GREET Supporting Documentation).

For example, in a December 13, 2023, letter to the Treasury Department, the EPA noted that it has interpreted section 211(o)(1)(H) of the Clean Air Act in the context of the Clean Air Act’s

RFS program. In that context, the EPA had previously determined that the version of ANL GREET that existed in 2010 (that is, R&D GREET) was not sufficient to calculate lifecycle GHG

emissions for purposes of 211(o)(1)(H) of the Clean Air Act. The EPA also explained that the more recent version of ANL GREET that existed as of December 2023 similarly did not satisfy

the relevant Clean Air Act criteria because it did not include the significant direct and indirect emissions that the EPA had previously determined were necessary. See Letter from Joseph

Goffman, Principal Deputy Assistant Administrator for the Office of Air and Radiation, U.S. Environmental Protection Agency, to Lily Batchelder, Assistant Secretary for Tax Policy, U.S.

Department of the Treasury (Dec. 13, 2023), available at https://home.treasury.gov/system/files/136/Final-EPA-letter-to-UST-on-SAF-signed.pdf.

March 24, 2025

1268

Bulletin No. 2025–13

considerations associated with hydrogen

production pathways.

In characterizing the lifecycle GHG

emissions rate of a given hydrogen production pathway, 45VH2-GREET reflects

key drivers of “lifecycle greenhouse gas

emissions” as defined by section 45V(c)

(1)(A) by cross-reference to section 211(o)

(1)(H) of the Clean Air Act, subject to the

additional requirements of section 45V(c)

(1)(B). Consistent with the Clean Air Act,

45VH2-GREET, in conjunction with the

broader regulatory framework, addresses

direct GHG emissions (for example, at

a hydrogen production facility) and significant indirect emissions (for example,

upstream emissions associated with electricity consumption at a hydrogen production facility).

Third, 45VH2-GREET is consistent

with the other requirements and purposes of section 45V. The accurate and

fair administration of the section 45V

credit requires the use of fixed “background data” assumptions for parameters

for which bespoke inputs from hydrogen

producers would present challenges for

tax administration, which requires high

fidelity to ensure the accurate assessment

and reporting of lifecycle GHG emissions

rates associated with the production of

hydrogen. Allowing taxpayers to provide

bespoke values for parameters that cannot

be accurately determined at an individual taxpayer level or cannot be verified

would invite exaggerated or understated

estimates that could result in inaccurate

section 45V credit determinations. Use of

verifiable data ensures that the section 45V

credit is available only to those facilities

that meet statutory requirements and that

the appropriate section 45V credit amount

is determined with respect to those facilities. To facilitate the use of bespoke values

where feasible and the use of appropriate

alternative values where that is not feasible, as well as consistency across taxpayers, the proposed regulations introduced

the concepts of “background data” (which

cannot be changed by 45VH2-GREET

users) and “foreground data” (which

allows for bespoke inputs by 45VH2GREET users), and 45VH2-GREET distinguishes between them in a consistent

manner. For example, 45VH2-GREET

incorporates the GHG emissions rates of

regional grids as a fixed background data

Bulletin No. 2025–13

parameter that users cannot change. The

values incorporated in 45VH2-GREET as

background data are based on individual

power generators’ reporting to the U.S.

Energy Information Administration (EIA),

emissions factors derived from the EPA’s

Emissions & Generation Resource Integrated Database (eGRID), estimates of

upstream emissions derived by Argonne

National Laboratory, and estimates of

transmission and distribution losses based

on State level reporting to the EIA. Given

that GHG emissions estimates of regional

grids are derived using the best available data and science, it is unlikely that a

given taxpayer would be able to establish

a value that differs materially from the

45VH2-GREET default and also has high

fidelity. Moreover, given that this parameter is expected to be consistent across

all taxpayers within a given region, it is

appropriate to require that all such taxpayers utilize the same value rather than

allowing for deviation across facilities.

Thus, 45VH2-GREET is consistent

with the specific requirements of section

45V while maintaining R&D GREET’s

overall modeling approach and much of

R&D GREET’s background assumptions.

This furthers the purposes reflected in

section 45V(c)(1)(A) and (B). For these

reasons, the Secretary has determined that

45VH2-GREET is a successor model for

purposes of section 45V(c)(1)(B), and the

final regulations require its use. Accordingly, proposed §1.45V-1(a)(8)(ii) is

modified and renumbered as §1.45V-1(a)

(9)(ii) to provide that the term “45VH2GREET Model” means the latest publicly available version of 45VH2-GREET

developed by Argonne National Laboratory and published by the DOE, as identified in the instructions to the latest version of Form 7210, or a successor form(s),

on the first day of the taxable year during

which the qualified clean hydrogen for

which the taxpayer is claiming the section

45V credit was produced. Additionally,

as further discussed in this Summary of

Comments and Explanation of Revisions,

proposed §1.45V-4(a) is modified to provide that the lifecycle GHG emissions

rate of each hydrogen production process

at a qualified clean hydrogen production

facility is determined under the 45VH2GREET Model. Conforming changes

have also been made throughout the regu-

1269

latory text to replace “most recent GREET

model” with “45VH2-GREET Model.”

b. Differences from R&D GREET

Several comments requested that

45VH2-GREET include all the pathways

and technologies that are present in R&D

GREET. Some of these comments also

requested that 45VH2-GREET employ

the same methodology used for measuring

lifecycle GHG emissions as those used in

R&D GREET. Some comments specifically requested that the transportation-related emissions be consistent between the

two models.

The final regulations do not adopt these

comments. As described in the 45VH2GREET User Manual and as described in

this part I.A.6 of the Summary of Comments and Explanation of Revisions,

some pathways may be included in R&D

GREET but not in a given version of

45VH2-GREET because the pathways

were still preliminary when such version

of 45VH2-GREET was developed and/or

because the pathways did not adequately

address all key sources of direct and significant indirect emissions (as required for

consistency with section 211(o)(1)(H) of

the Clean Air Act). Uncertainties around

many of these pathways may include

parameters such as identification of all relevant feedstocks or the choice of counterfactual scenarios. These uncertainties are

described in sections 2.1.1 and 2.1.4 of the

R&D GREET Supporting Documentation.

Some pathways, such as those using certain types of biomass, also had uncertainties and had not completed the 45VH2GREET technical review process at the

time the most recent version was released,

but may be added in future updates as data

and other parameters become more robust.

The proposed regulations requested comments on lifecycle analysis considerations

associated with some of the pathways that

were not included in the initial 45VH2GREET release (for example, certain

RNG pathways and fugitive methane),

which could inform future updates to the

model.

Some specific aspects of hydrogen production pathways within R&D GREET

have completed an interagency review

process, have been deemed sufficiently

robust and, have therefore also been

March 24, 2025

included in 45VH2-GREET. Examples

include default assumptions associated

with methane leakage during natural gas

transportation to a facility or assumptions of the emissions that result from

electricity generation from specific generators. Thus, some assumptions related

to transportation emissions have been

made consistent between R&D GREET

and 45VH2-GREET, while other assumptions are still too uncertain to include in

45VH2-GREET but may be included if

deemed sufficiently robust in the future

based on evaluation by interagency technical experts.

R&D GREET is used for a range of

purposes, including academic studies and

research that do not necessarily require

verification of assumptions with realworld data at specific facilities and at

times rely on small and therefore uncertain sample sizes or datasets. Implementation of the section 45V credit, however,

requires that information used to calculate

the lifecycle GHG emissions rate reflect

a given taxpayer’s actual operation with

a reasonable degree of certainty and be

subject to independent verification where

possible or, where not, that values used

appropriately reflect the range of possibilities rather than allowing use of unverifiable inputs that inappropriately maximize

the amount of the section 45V credit. As

described previously, use of verifiable data

is necessary in the context of tax administration and in particular with respect to the

section 45V credit where eligibility for the

amount of the credit is based on the facility’s lifecycle GHG emissions rate.

c. Emissions Through the Point of

Production (Well-to-Gate)

Proposed §1.45V-1(a)(8)(iii) would

have provided that, for purposes of section 45V(c)(1)(B) and proposed §1.45V1(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 hydrogen production facility during the taxable

year through the point of production. Further, proposed §1.45V-1(a)(8)(iii) would

have provided that such term includes

emissions associated with feedstock

growth, gathering, extraction, processing,

and delivery to a hydrogen production

March 24, 2025

facility. Finally, proposed §1.45V-1(a)(8)

(iii) would have provided that such term

includes the emissions associated with the

hydrogen production process, inclusive

of the electricity used by the hydrogen

production facility and any capture and

sequestration of carbon dioxide generated

by the hydrogen production facility.

Some comments requested clarification

on the definition of “well-to-gate” and

whether emissions related to hydrogen

purification, compression, liquefaction,

transport, storage, and other activities are

included in the definition for purposes of

calculating the lifecycle GHG emissions

rate of the hydrogen. Other comments

provided feedback on the requirement in

proposed §1.45V-1(a)(8)(iii) that taxpayers calculate the lifecycle GHG emissions

rate of hydrogen produced at a hydrogen

production facility based on the aggregate

amount of hydrogen produced at the facility over the taxable year (in other words,

use the average annual emissions rate).

While some comments supported requiring taxpayers to calculate the lifecycle

GHG emissions rate of hydrogen on an

annual basis, other comments requested

that taxpayers be permitted to calculate the

lifecycle GHG emissions rate of hydrogen

produced at their facility on a more granular basis. One comment expressed disappointment that the Treasury Department

and the IRS did not engage States in defining lifecycle GHG emissions. Another

comment recommended that the final

regulations require State governments

to adopt regulations to complement and

enhance section 45V. Finally, one comment requested that the term “emissions

through the point of production (well-togate)” exclude emissions from the production of hydrogen during natural disasters,

emergency events, start-ups, shut-downs,

and maintenance activities.

Regarding the request for clarification

of whether specific activities fall within

the well-to-gate system boundary, the

definition of “emissions beyond the point

of production (well-to-gate)” in proposed

§1.45V-1(a)(8)(iii) and renumbered as

§1.45V-1(a)(9)(iii) is sufficiently clear.

Comments have indicated confusion,

however, as to how the well-to-gate system boundary and the definition of facility

interact. To clarify, the well-to-gate system boundary for purposes of determin-

1270

ing the lifecycle GHG emissions rate of a

process is distinct from the definition of

facility for Federal income tax purposes.

First, as specified in §1.45V-1(a)(9)(iii),

the well-to-gate system boundary includes

certain emissions that occur upstream of

the facility. For example, the well-to-gate

system boundary includes emissions associated with feedstock growth, gathering,

extraction, processing, and delivery to a

hydrogen production facility. While such

emissions are included in the well-to-gate

system boundary, equipment used in such

upstream activities—such as electricity generating equipment—is not part of

the facility, as specified in §1.45V-1(a)

(7)(ii)(B). Second, as further specified

in §1.45V-1(a)(9)(iii), the well-to-gate

system boundary also includes all emissions resulting from the facility’s hydrogen production process, inclusive of the

production of a mixed gas or impurity

and the electricity used by the hydrogen

production facility and any capture and

sequestration of carbon dioxide generated

by the hydrogen production facility. This

includes emissions resulting from the use

of all components that function interdependently to produce the qualified clean

hydrogen for which the section 45V credit

is determined. Emissions from activities

that occur after the facility’s hydrogen

production process is complete, such as

liquefaction, storage, or transport, are

generally beyond the well-to-gate system

boundary. The final regulations include a

non-exhaustive list of examples of such

activities in §1.45V-1(a)(9)(iii). Finally,

as explained in part I.A.6.d, §1.45V-1(a)

(9)(iv) is added to provide that emissions

that result from certain purification activities that occur downstream of the facility’s qualified clean hydrogen production

process are still within the well-to-gate

system boundary. Even though equipment

used in such purification activities is not

part of the facility, emissions associated

with such purification are nevertheless

within the well-to-gate system boundary

for purposes of determining the section

45V credit.

However, the Treasury Department

and the IRS, based on advice of the DOE,

note that, in situations where a man-made

chemical is produced using hydrogen

feedstock (for example, ammonia), and

is later cracked or “dehydrogenated” to

Bulletin No. 2025–13

release the hydrogen, the chemical represents a means of hydrogen storage and

the cracking step releases the hydrogen

from such storage. These steps occur

downstream of hydrogen production and

are therefore outside of the well-to-gate

system boundary, and also do not constitute a distinct hydrogen production

process. Accordingly, hydrogen released

from cracking such chemicals cannot be

used to claim the section 45V credit.

Regarding the requirement that taxpayers calculate the lifecycle GHG emissions rate of their hydrogen on an annual

basis, these comments are addressed in

response to comments received on proposed §1.45V-4(a) in part III.A of this

Summary of Comments and Explanation

of Revisions.

Regarding a comment’s criticism that

the Treasury Department and the IRS did

not engage the States in defining lifecycle

GHG emissions, this term is defined in

section 45V(c)(1)(A) as having the same

meaning given such term under section

211(o)(1)(H) of the Clean Air Act. Moreover, States were afforded the opportunity

to comment on the proposed regulations,

and some did. Section 45V does not require

State governments to take any action or to

enact any legislation to complement section 45V. Section 45V provides a Federal

income tax credit to owners of qualified

clean hydrogen production facilities for

the production of qualified clean hydrogen

and imposes no obligations on the States.

Accordingly, these final regulations do not

adopt the request to require the States to

enact legislation to complement section

45V.

Finally, regarding the request to

exclude emissions from the production

of hydrogen during periods of natural

disasters, emergency events, start-ups,

shut-downs, and maintenance activities,

section 45V(c)(1) does not provide for or

contemplate any such exceptions. These

final regulations, therefore, do not adopt

this comment’s suggestion.

d. Certain Emissions Related to

Purification Treated as Through Point of

Production.

In consultation with the DOE, the final

regulations add a new §1.45V-1(a)(9)(iv),

which addresses emissions attributable

Bulletin No. 2025–13

to the purification of hydrogen. Section

1.45V-1(a)(9)(iv) provides that, if the taxpayer knows or has reason to know the

purification of a hydrogen gas stream (that

is, removal of a mixed gas or impurity) is

necessary for a hydrogen gas stream to be

productively used, or to be sold for productive use, any lifecycle GHG emissions

relating to such purification (for example,

emissions from electricity used in purification, or carbon dioxide that is separated

from a hydrogen gas stream and then

vented as part of purification) are treated

as emissions through the point of production (well-to-gate). Additionally, if the

taxpayer knows or has reason to know that

a hydrogen gas stream contains less than

99 percent hydrogen and will be combusted without purification, any lifecycle

GHG emissions relating to the purification

needed to purify the hydrogen gas stream

to contain 99 percent hydrogen are treated

as emissions through the point of production (well-to-gate). Section1.45V-1(a)(9)

(v) provides an example to illustrate this

rule.

To ascertain the emissions associated

with production of hydrogen in a manner

that is consistent with section 45V, which

requires that section 45V credit eligibility

be determined on the basis of “kilograms

of CO2e per kilogram of hydrogen”,

45VH2-GREET levelizes all well-to-gate

emissions associated with a hydrogen production process over only the kilograms

of pure hydrogen produced. This includes

emissions attributable to the purification

of a hydrogen gas stream to remove a

mixed gas or impurity. Emissions attributable to purification include emissions

associated with energy consumption (for

example, electricity consumed by purification equipment or by equipment used

for carbon dioxide capture), as well as

greenhouse gases that are separated out

by purification equipment and not sequestered (for example, carbon dioxide that is

captured and then vented).

Previous versions of 45VH2-GREET

accounted for carbon dioxide emissions

that may occur from the conversion of

impurities or mixed gases downstream

of the hydrogen production facility, thus

including such emissions in the levelization. This approach will be revised in

the forthcoming January 2025 version

of 45VH2-GREET, such that emissions

1271

outside of the well-to-gate boundary are

not accounted for in determining a process’ lifecycle GHG emissions rate for

purposes of section 45V. Qualified clean

hydrogen production facilities can therefore be designed to achieve the level of

purity required for sale or use (subject to

the rules of section 45V and these final

regulations), without regard to the carbon

dioxide emissions that may occur from the

conversion of impurities or mixed gases

downstream (for example, the ultimate

conversion to carbon dioxide of methanol produced from a mixed gas stream of

hydrogen and carbon monoxide).

As the result of the January 2025

modification to 45VH2-GREET and the

45VH2-GREET User Manual, and to clarify the appropriate well-to-gate boundary,

these final regulations, following consultation with the DOE, clarify the definition

of emissions through the point of production (well-to-gate) to address emissions

attributable to purification that the taxpayer knows or has reason to know are

necessary in order for the hydrogen gas

stream to be productively used, regardless

of where such purification occurs. These

emissions are properly treated as occurring within the well-to-gate boundary in

§1.45V-1(a)(9)(iv).

In certain cases—absent the section

45V credit—the taxpayer would normally

purify a hydrogen gas stream prior to it

being productively used or sold for productive use, and such purification would

have lifecycle GHG emissions attributed

to the hydrogen produced. Taxpayers,

however, could have an incentive to

claim that the purification (and its attendant emissions) occurs beyond the hydrogen production “gate.” If these emissions occur outside of the “gate,” then

they would not be attributed in 45VH2GREET to the hydrogen production process and therefore would not be included

in the hydrogen production process’ lifecycle GHG emissions rate for purposes

of determining the amount of the section

45V credit. The taxpayer may, for example, forgo hydrogen purification that it

would have performed absent the incentive of the section 45V credit, and produce

comparatively “impure hydrogen.” The

“impure hydrogen” may then be sold to a

customer who would purify the hydrogen

gas stream (something it would not need

March 24, 2025

to do absent the incentive to the hydrogen

producer due to the section 45V credit),

thereby generating lifecycle GHG emissions that the taxpayer was able to forgo.

Similarly, a taxpayer could have an incentive to instead sell a stream of impure

hydrogen and a mixed gas or impurity

(such as carbon monoxide), instead of the

purified hydrogen gas stream, for combustion. The DOE has advised that, absent the

section 45V credit, hydrogen gas streams

are consistently sold at purity levels well

above 99 percent today and that customers would likely have to substantially

modify their operations to accept less pure

gas streams. Therefore, DOE has advised

that the predominant motivation to sell

hydrogen for combustion at lower purities

would be so the emissions associated with

those impurities would not be accounted

for within the well-to-gate boundary.

These circumstances would be inconsistent with a purpose of section 45V,

which is to provide an incentive to produce qualified clean hydrogen and to provide a higher incentive to produce qualified clean hydrogen as more lifecycle

GHG emissions are avoided. Producing

hydrogen with a lower lifecycle GHG

emissions rate and receiving a section 45V

credit reflecting such an emissions rate in

the case where the taxpayer knows or has

reason to know that the customer must

further purify the hydrogen gas stream

(and emit additional emissions) so that

such gas stream can be productively used

by its customer is contrary to this purpose

and to 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. To address this, and

consistent with the purposes of section

45V, in cases where the taxpayer knows or

has reason to know that additional purification is needed for a hydrogen gas stream

to be productively used, the final regulations clarify that the emissions associated

with the purification needed to produce

the hydrogen for a productive use occur

within the well-to-gate boundary. Likewise, in cases where the taxpayer knows

or has reason to know that a hydrogen

gas stream contains less than 99 percent

hydrogen and will be combusted without

purification, emissions that would have

resulted from purifying the hydrogen gas

stream to that percentage prior to combus-

March 24, 2025

tion are treated as emissions within the

well-to-gate boundary.

The final regulations are consistent

with the treatment of emissions related to

purification in the January 2025 version

of 45VH2-GREET, which treats emissions attributable to purification that the

taxpayer knows or has reason to know are

necessary in order for the hydrogen gas

stream to be productively used as within

the gate.

7. Process

Section 45V(c)(1)(A) and (B) establish

the boundaries for determining lifecycle

GHG emissions rates associated with the

production of hydrogen. Section 45V(c)

(1)(A) mandates consideration of GHG

emissions that are described in section

211(o)(1)(H) of the Clean Air Act. Section 45V(c)(1)(B) further specifies that

the term “lifecycle greenhouse gas emissions” only includes emissions through

the point of production (well-to-gate), as

determined under the most recent GREET

model or a successor model as determined

by the Secretary. Accordingly, section

45V(c)(1)(B) specifies an ending boundary (that is, the gate of a hydrogen production facility) for the emissions that must

be considered for purposes of the section

45V credit. It also specifies a model for

use in determining lifecycle GHG emissions rates. Taken together, these statutory

rules provide the boundaries for assessing

lifecycle GHG emissions for purposes of

section 45V.

Section 45V provides authority for the

Secretary to specify and clarify how to

determine lifecycle GHG emissions rates

within these statutorily determined boundaries. Exercise of this authority is necessary because this statutory framework

must address a wide range of hydrogen

production processes that are currently

viable or that may become viable in the

future, the technical details of each hydrogen production process, and scientific

advancements and uncertainties associated with lifecycle GHG analyses. Congress acknowledged that the Secretary

would need to identify a system for determining lifecycle GHG emissions rates and

expressly delegated to her the authority to

do so in section 45V(f), which provides

“the Secretary shall issue regulations or

1272

other guidance to carry out the purposes

of this section, including regulations or

other guidance for determining lifecycle

greenhouse gas emissions.” As noted previously, this authority is cabined by the

directives in the statute, most critically the

directive to measure well-to-gate lifecycle GHG emissions as defined by section

211(o)(1)(H) of the Clean Air Act.

The term “process,” as used in sections

45V(b)(2)(A) through (D) and in section

45V(c)(2)(A), is a parameter that requires

further clarification. Proposed §1.45V4(a) and (b) would have required the section 45V credit to be determined according to the lifecycle GHG emissions rate

of all hydrogen produced at a hydrogen

production facility during the taxable year.

Under this proposal, the term “process”

included all the operations and inputs used

by a facility to produce hydrogen during a

taxable year.

The Treasury Department and the IRS

received a number of comments which

led to a reconsideration of how the term

“process” is used in determining lifecycle GHG emission rates. After reviewing these comments and reexamining the

meaning of the term “process” as it relates

to the structure and purposes of section

45V, these final regulations add §1.45V1(a)(11) to define the terms “process” and

“primary feedstock,” as discussed further in this part I.A.7 of this Summary of

Comments and Explanation of Revisions.

These final regulations also make a corresponding modification to §1.45V-1(b)

regarding the amount of the credit.

Several comments recommended that

45VH2-GREET allow for the blending

of feedstocks, like natural gas and RNG.

In the case of RNG, comments claimed

that given the high cost of RNG, combining RNG with conventional natural gas

could create certain market efficiencies

that would justify the combined use of

RNG and natural gas. Several comments

opposed allowing the mixing of RNG (or

other types of biomethane) with conventional natural gas to produce clean hydrogen; in particular, one comment noted that

“splash blending,” or combining small

amounts of RNG with conventional natural gas, could cost the U.S. government billions of dollars annually while potentially

increasing overall emissions. According

to one comment, to avoid splash blending,

Bulletin No. 2025–13

each methane-based feedstock should be

considered a separate production line.

Section 45V generally requires that

lifecycle GHG emissions rates be determined according to the process by which

the hydrogen is produced. Section 45V(b)

(2) provides the rules for determining

the applicable percentages that are ultimately used to calculate the amount of

the section 45V credit. In general, section

45V(b) requires applicable percentages

to be determined with respect to “qualified clean hydrogen which is produced

through a process that results in a lifecycle

greenhouse gas emissions rate” that falls

within statutorily mandated emissions rate

ranges. Section 45V(c)(2)(A) defines the

term qualified clean hydrogen as hydrogen that is produced through a process that

results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms

of CO2e per kilogram of hydrogen.

Section 45V does not expressly define

the term “process.” The plain meaning of

the term “process” is “a series of actions or

operations conducing to an end.”11 In particular, for lifecycle assessment purposes,

the term “process” has been defined as a

“set of interrelated or interacting activities that transforms inputs into outputs.”12

Building upon these definitions, combined

with the statutory distinctions between

processes that result in different specified

ranges of lifecycle GHG emissions rates,

the statutory text indicates that the term

“process” necessarily includes a degree of

uniformity and consistency among those

inputs that can meaningfully differ in their

GHG intensity. Section 45V(b)(2) provides varying credit amounts for hydrogen

that is “produced through a process that

results in a lifecycle greenhouse gas emissions rate” that falls into specified ranges.

The term “process” must therefore mean

more than just the production technique

because the same production technique,

such as steam methane reforming, could

produce lifecycle GHG emissions rates

that fall into different ranges specified in

the statute depending on the inputs used.

The statute differentiates between “a process that results in” one specified range of

GHG emissions rates from “a process that

results in” a different specified range of

GHG emissions rates. See section 45V(b)

(2)(A) through (D). The only effective

way to distinguish between hydrogen

production processes is to define the term

“process” with respect to both the production technique and a class of uniform or

similar inputs used in that technique.

This interpretation of the term “process” is consistent with the chemical

transformations that are used to produce

hydrogen, and with the language in section 45V. Treating input feedstocks with

significantly different attributes as part

of the same hydrogen production process

(for example, by averaging the attributes

of multiple types of methane used over a

time period) often would not accurately

reflect the chemical dynamic whereby

each molecule of hydrogen originates from

distinct source-molecule inputs that have

distinct attributes affecting the lifecycle

emissions of each hydrogen molecule and,

as a result, often would not reflect the lifecycle GHG emissions rate of the resulting

hydrogen molecules, as required by the

statute. The most granular approach to

assessing lifecycle GHG emissions would

therefore be to match each molecule of

hydrogen with its molecular inputs and

identify the lifecycle emissions associated

with the resulting hydrogen. However,

this level of granularity is impractical to

administer and unnecessary to implement

the statute. The feasible and appropriate

approach to aggregating molecules is to

assess each hydrogen production process

by grouping source molecules into categories of primary feedstock.

This aggregation approach best implements the statutory requirements of section

45V because the production of hydrogen

using inputs with similar attributes can be

expected to produce consistent emissions

results, allowing the appropriate determination of eligibility and credit amounts

under section 45V. An approach that incorrectly assumed all hydrogen molecules are

a blend of feedstocks would not yield a correct lifecycle assessment, would have perverse incentive effects (as discussed subsequently in this Summary of Comments and

Explanation of Revisions), and would be

no more administrable than the approach

adopted in these final rules.

With the exception of geologic hydrogen, all hydrogen production processes

involve conversion of hydrogen-containing molecules into pure hydrogen. In electrolysis, for example, the feedstock—the

source of the hydrogen molecules—is

water, which contains no carbon and

therefore does not directly produce carbon

dioxide (or other GHGs) in the production

of hydrogen. By contrast, in steam methane reforming, the feedstock is water and

methane, which produces hydrogen and

carbon dioxide when reformed. In pyrolysis, the feedstock is organic matter, which

produces hydrogen and solid carbon when

pyrolyzed. In methane pyrolysis, the feedstock is methane, which is converted into

hydrogen and solid carbon through the

application of high temperatures.

Energy attributes and lifecycle GHG

emissions can vary considerably among

hydrogen-containing feedstocks. For

instance, the water inputs into electrolysis

generally have limited upstream emissions

and zero direct GHG emissions from the

chemical reaction that produces hydrogen.

Hydrocarbon inputs into methane reforming produce a standard quantity of direct

emissions through the chemical reaction

that produces hydrogen, but upstream

emissions vary considerably for different

sources. Different hydrocarbon inputs

have significantly different upstream practices (for example, methods of gathering,

processing, or delivery) and counterfactuals, among other factors, which result in

dramatic differences in resulting lifecycle

GHG emissions rates of producing hydrogen from that methane source.

Because of the potential for significant

variation in the lifecycle GHG emissions

rates associated with different inputs, and

the structure of section 45V, it is necessary

to assess hydrogen production using different hydrogen-containing feedstocks as

distinct processes. Accordingly, these final

regulations distinguish processes based

on their hydrogen-containing feedstock,

which is referred to in these final regulations as a “primary feedstock.” A “primary feedstock” is defined in §1.45V-1(a)

(11) as a hydrogen-containing chemical

that is transformed to produce hydrogen

at a hydrogen production facility and has

Process, Merriam-Webster Dictionary, available at https://www.merriam-webster.com/dictionary/process.

International Organization for Standardization, ISO 14040:2006, Environmental Management—Life Cycle Assessment—Principles and Framework (2d ed. 2006).

Bulletin No. 2025–13

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uniform or similar attributes distinguished

by the source from which it is derived, if

such source materially affects the lifecycle GHG emissions rate associated with

use of the chemical to produce hydrogen.

If the term “process” were instead interpreted to encompass feedstocks with significantly different attributes as relevant

to determining lifecycle GHG emissions,

then the approach to determining whether

a “process” has comported with statutorily

prescribed lifecycle GHG emissions rate

ranges for the purposes of determining the

amount of the section 45V credit would

not effectively, in fact, incentivize the

production of hydrogen within a specific

lifecycle GHG emissions rate range. For

example, allowing a process to calculate

a single emissions rate based on a mix of

feedstocks with disparate attributes would

increase the risk that hydrogen production that would otherwise not meet the

statutory emissions requirements receives

the section 45V credit simply by virtue

of being commingled or averaged with

hydrogen production that does meet the

statutory emissions requirements using

other inputs. This would be a foreseeable and inappropriate result if, as several

comments urged, the term “process” were

interpreted as any activities and inputs

that resulted in the production of a kilogram of hydrogen. The statute’s singular

reference to “a process” and “a lifecycle

greenhouse gas emissions rate” indicates

that the statutory references to the term

“process” requires evaluation on the basis

of each specific process, with uniformity

and consistency across its operations and

primary feedstock that generally results

in a consistent lifecycle GHG emissions

rate. Defining the term “process” based

solely on the type of a facility’s operations that produce hydrogen (for example,

steam methane reforming or autothermal

reforming) is not appropriate because such

operations could rely on feedstocks with

materially different attributes and carbon

intensities, which would result in very different lifecycle GHG emission rates that

would not be observable if feedstocks are

aggregated. Thus, feedstocks to a process

should have attributes with a sufficient

degree of uniformity and consistency to

be considered part of the same “process.”

Separately evaluating each hydrogen

production process at a qualified clean

March 24, 2025

hydrogen production facility is consistent

with the statutory language and scheme of

section 45V, which requires accuracy in

determining “a lifecycle [GHG] emissions

rate” for hydrogen produced via “a process.” See section 45V(c)(2)(A).

For these reasons, consistent with the

transformation of feedstock in the production of hydrogen, §1.45V-1(a)(11) defines

the term “process” to mean the operations

conducted by a facility to produce hydrogen (for example, electrolysis or steam

methane reforming) during a taxable year

using one primary feedstock. A facility

producing hydrogen through electrolysis,

for example, will have a single hydrogen

production process in a taxable year with

water as its primary feedstock. Electricity

with different attributes would not result

in distinct processes because electricity is

not a primary feedstock (that is, it is not

contributing hydrogen atoms to the hydrogen molecule); additionally, electricity

cannot be differentiated at the molecular

level. Electricity and heat are integral to

the operations of hydrogen production

facilities, and the form of energy used by

a facility (for example, electricity versus

heat) plays an essential role in discerning

different hydrogen production processes.

The energy powering a facility’s operations enables the chemical transformation

of molecular feedstocks into hydrogen, but

energy does not itself contribute atoms to

the hydrogen produced by a facility. Thus,

the final regulations do not treat electricity and heat as primary feedstocks, but

instead require tracking and assessing the

emissions associated with energy used in a

process through different mechanisms, as

described in part III.D of this Summary of

Comments and Explanation of Revisions

and specified in 45VH2-GREET. For a

facility that produces hydrogen through

steam methane reforming using fossil

natural gas, for example, the combination

of fossil natural gas and water would be

considered one primary feedstock because

hydrogen molecules derive from both

fossil natural gas and water and this form

of hydrogen production requires use of

both water and methane. Thus, a facility

producing hydrogen exclusively through

reforming of fossil natural gas with water

would have a single hydrogen production process in a taxable year. A facility

producing hydrogen through reforming

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of both fossil natural gas and RNG from

animal manure with water would have

two hydrogen production processes in

that year; the primary feedstock for one

process would be fossil natural gas and

water, and the primary feedstock for the

other process would be RNG from animal

manure and water.

As further specified in the 45VH2GREET User Manual and reflected in

45VH2-GREET, some types of primary

feedstocks are distinguished by their origin (for example, methane from a specific

source), as well as attributes of that source

as relevant to determining lifecycle GHG

emissions. While these final regulations

cannot anticipate and address all possible

primary feedstocks that may be utilized

for hydrogen production, the Treasury

Department and the IRS note that it is

currently appropriate to treat fossil natural

gas, RNG derived from landfill gas, RNG

derived from animal waste, RNG derived

from wastewater treatment plants, and gas

derived from coal mine methane as distinct primary feedstocks. If a facility uses

any of these gas streams in combination

with water via interdependent steps (for

example, in the case of reforming), then

the combination of that gas stream (for

example, fossil natural gas, RNG derived

from landfill gas, etc.) and water is a singular primary feedstock. Such treatment

implements the definition of primary

feedstock adopted here, which treats as a

single feedstock that which has uniform

or similar attributes distinguished by the

source from which it is derived, if such

source materially affects the lifecycle

GHG emissions associated with use of the

molecule to produce hydrogen.

If a facility utilizes more than one primary feedstock to produce hydrogen, then

that facility will have an equal number of

separate hydrogen production processes

that each must be assessed separately to

determine a lifecycle GHG emissions

rate for the quantity of hydrogen produced through that process for purposes

of section 45V. For example, if a taxpayer

procures RNG sourced from a blend of

sources, the taxpayer must account for the

share of RNG derived from each source

distinctly within 45VH2-GREET or an

Emissions Value Request Application.

Future releases of 45VH2-GREET and

analyses conducted through the DOE’s

Bulletin No. 2025–13

EVRP may address additional primary

feedstocks, but any new primary feedstock must also be treated as distinct.

The Treasury Department and the IRS

note that there is precedent for this type of

approach for assessing emissions associated with the production of fuels. The RFS

is another example of a framework that

requires a determination of what activities

should be aggregated or separated for purposes of lifecycle analysis to determine

GHG emissions. Similar to the approach

provided for here, the RFS conducts

LCAs for distinct feedstock-technology-output combinations because those

combinations have the potential to have

distinct lifecycle emissions that should be

credited differently under the RFS’s statutory scheme. See “Regulation of Fuels and

Fuel Additives: Changes to Renewable

Fuel Standard Program,” 75 FR 14670,

14713 (Mar. 26, 2010) (EPA final regulation providing that different combinations

of feedstock, production process, and fuel

that result in different lifecycle GHG outcomes must be evaluated separately).

8. Qualified Clean Hydrogen

Section 45V(c)(2)(A) provides that

“qualified clean hydrogen” means hydrogen which is produced through a process

that results in a lifecycle GHG emissions

rate of not greater than 4 kilograms of

CO2e per kilogram of hydrogen. Further, section 45V(c)(2)(B) provides that

such term does not include any hydrogen

unless the production and sale or use of

such hydrogen is verified by an unrelated

party, and such hydrogen is produced in

the United States (as defined in section

638(1) of the Code) or a United States

possession (as defined in section 638(2));

in the ordinary course of a trade or business of the taxpayer; and for sale or use.

Proposed §1.45V-1(a)(9) substantially

repeats the statutory definition.

Several comments requested clarification on the definition of “qualified clean

hydrogen.” Some comments requested

clarification that hydrogen does not need

to be of a certain level of purity to constitute “qualified clean hydrogen.” Specifically, comments requested clarification

that “qualified clean hydrogen” includes

hydrogen that is produced as one of several constituents in a gas stream so long

Bulletin No. 2025–13

as the gas stream is valorized. The comments suggested that the statute does not

specify that the hydrogen production

must isolate the hydrogen or that the gas

stream containing the hydrogen achieve a

certain threshold hydrogen content to be

eligible for the credit. These comments

further suggested that requiring hydrogen to be separated from other components in a gas stream when those components would be immediately recombined

with the hydrogen would be inefficient.

One comment requested clarification

on whether there are specific metering

requirements for monitoring the purity of

the hydrogen.

These final regulations do not modify

the definition of “qualified clean hydrogen” to specify a certain level of purity,

or to specify that no level of purity is

required. A purity requirement does not

need to be added to the definition of “qualified clean hydrogen” because 45VH2GREET already accounts for impurities

by assessing the well-to-gate emissions of

a hydrogen production facility over only

the kilograms of pure hydrogen produced.

The treatment of mixed gases or impurities is further discussed in part I.A.6.d. of

this Summary of Comments and Explanation of Revisions.

The decisions to characterize well-togate emissions of hydrogen based only

on the kilograms of pure hydrogen produced, and to address impurities through

the well-to-gate lifecycle GHG emissions

analysis (in 45VH2-GREET or the PER

process)—rather than by requiring hydrogen to be of a certain level of purity—are

consistent with Congress’s directive under

section 45V(c)(1)(A) and (B) to determine

lifecycle GHG emissions as defined under

section 211(o)(1)(H) of the Clean Air Act

and 45VH2-GREET.

As to the request for clarification

on whether there are specific metering

requirements for monitoring the purity

of the hydrogen, as discussed in this part,

impurities are accounted for through the

well-to-gate lifecycle GHG emissions

analysis (in 45VH2-GREET or the PER

process). Metering requirements for all

relevant inputs into 45VH2-GREET,

including purity, are addressed in §1.45V5(g)(5), and no special metering requirements for purity, apart from those specified in §1.45V-5(g)(5), are needed.

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9. For Sale or Use

For purposes of section 45V(c)(2)(B)

(i)(III) and proposed §1.45V-1(a)(9)(i)

(C), proposed §1.45V-1(a)(9)(ii) would

have provided that, the term “for sale or

use” means for the primary purpose of

making hydrogen ready and available for

sale or use. Following production, storage

of hydrogen before its sale or use would

not disqualify such hydrogen from being

considered produced for sale or use. No

comments were received on proposed

§1.45V-1(a)(9)(ii), and this provision is

adopted without change as renumbered

§1.45V-1(a)(13)(ii).

B. Amount of Credit

1. In General

Under section 45V(a), the clean hydrogen production credit is based on the

amount of qualified clean hydrogen produced “during the 10-year period beginning on the date such facility was originally placed in service” multiplied by the

applicable amount identified in section

45V(b). Proposed §1.45V-1(b)(1) would

have incorporated this calculation of the

amount of credit by providing that the

amount of the section 45V credit determined under section 45V(a) and the section 45V regulations for any taxable 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 facility 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.

Several comments requested changes

related to the 10-year credit period and

the placed in service date specified in

proposed §1.45V-1(b)(1). One comment

requested that the 10-year credit period

be tolled for circumstances beyond the

taxpayer’s control or during periods of

diminished capacity. Another comment

requested that the placed in service date

of a qualified clean hydrogen production

facility be delayed until operational testing is complete and commercial quantities

of hydrogen are produced. Another comment requested that the final regulations

provide that a qualified clean hydrogen

March 24, 2025

production facility cannot be placed in

service until after December 31, 2022.

This comment suggested that, prior to January 1, 2023, it was impossible to produce

qualified clean hydrogen because section

45V, which established what is qualified

clean hydrogen, did not become effective

until that date. Thus, this comment suggested, no hydrogen production facility

could properly be treated as having been

placed in service as a “qualified clean

hydrogen production facility” until that

date.

Another comment requested clarification of the requirements for pre-existing

facilities that were originally placed in

service prior to the enactment of section

45V and the extent to which such facilities can claim the section 45V credit for

the years remaining in the 10-year period

beginning on the date such facilities were

originally placed in service.

These final regulations do not adopt

the changes to proposed §1.45V-1(b)(1)

recommended by these comments. Section 45V(a) establishes that the credit is

based, in part, on the placed in service

date and the definition of “placed in service” is sufficiently clear as an established

tax concept. Section 1.46-3(d)(1) provides

that, for purposes of the section 38 credit

(which includes the clean hydrogen production credit determined under section

45V, see section 38(b)(36)), property is

considered placed in service in the earlier

of the taxable year in which, under the taxpayer’s depreciation practice, the period

for depreciation with respect to such property begins; or the taxable year in which

the property is placed in a condition or

state of readiness and availability for a

specifically assigned function, whether in

a trade or business, in the production of

income, in a tax-exempt activity, or in a

personal activity. Examples of property

that is considered in a condition or state

of readiness and availability for a specifically assigned function are set forth in

§1.46-3(d)(2). Section 1.46-3(d)(2)(ii)

provides that operational farm equipment

that is acquired during the taxable year

and is not practicable to use until the following year is still considered ready and

available for its assigned function in the

taxable year. Section 1.46-3(d)(2)(iii) provides that equipment that is operational

but is still undergoing testing to eliminate

March 24, 2025

any defects is still considered ready and

available for its assigned function. These

examples clarify that property can be

ready and available for its assigned function regardless of the level of production

attained.

Various revenue rulings and case law

have established a five-factor test for

determining when a facility is placed in

service, including (1) whether the necessary permits for operation have been

obtained; (2) whether critical preoperational testing has been completed; (3)

whether the taxpayer has control of the

facility; (4) whether the unit has been

synchronized with the transmission grid;

and (5) whether daily or regular operation

has begun. See Ampersand Chowchilla

Biomass, LLC v. United States, 150 Fed.

Cl. 620 (2020) (citing Rev. Rul. 84-85,

1984-1 C.B. 10; Rev. Rul. 79-98, 1979-1

C.B. 103; Rev. Rul. 76-256, 1976-2 C.B.

46; and Rev. Rul. 76-428, 1976-2 C.B.

47), aff’d, 26 F.4th 1306 (Fed. Cir. 2022).

No one factor is dispositive.

Determining the date on which a qualified clean hydrogen production facility

was placed in service is inherently fact

intensive, and the existing case law and

revenue rulings are sufficient for taxpayers to determine their facility’s placed in

service date. Relying upon existing standards provides sufficient clarity to taxpayers and avoids the confusion of creating

multiple placed in service standards.

Regarding whether the final regulations should provide that the 10-year

credit period is tolled to account for circumstances beyond the taxpayer’s control

or during periods of a facility’s diminished capacity, the 10-year credit period

is a statutory requirement under section

45V(a)(1), and there is no provision that

provides an exception to this statutory

rule.

Regarding whether the final regulations

should clarify that a qualified clean hydrogen production facility cannot be placed

in service until after December 31, 2022,

the Treasury Department and the IRS clarify in this Summary of Comments and

Explanation of Revisions that a qualified

clean hydrogen production facility may

have been placed in service prior to January 1, 2023. First, section 45V does not

specify an earliest date on which a qualified clean hydrogen production facility

1276

must be placed in service to be eligible for

the section 45V credit, and as explained in

the Explanation of Provisions to the proposed regulations, the owner of a qualified

clean hydrogen production facility originally placed in service after December

31, 2012, can 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.

Second, providing a rule that a qualified

clean hydrogen production facility cannot be placed in service until January 1,

2023, would conflict with section 45V(d)

(4), which provides that a facility that did

not produce qualified clean hydrogen and

that was originally placed in service prior

to January 1, 2023, can receive a new,

deemed placed in service date as of the

date the facility is modified after December 31, 2022, to produce qualified clean

hydrogen. If, as the comment suggests, no

qualified clean hydrogen production facility could be placed in service until January

1, 2023, then existing hydrogen production facilities would receive a new placed

in service date regardless of whether they

meet the requirements of section 45V(d)

(4), rendering section 45V(d)(4) superfluous. Third, under the comment’s reading,

no qualified clean hydrogen production

facility could be placed in service until

the hydrogen production and its sale or

use is verified, as those are requirements

to have qualified clean hydrogen. Verification might not occur until a taxable year

following the year in which the hydrogen was produced, which would prevent

the credit from being determined in the

first taxable year of production. Fifth, the

comment’s reading conflicts with section

6417(b)(5), which makes clear that a qualified clean hydrogen production facility

can be originally placed in service prior

to January 1, 2023. See section 6417(b)

(5) (an applicable credit includes “[s]

o much of the credit fo

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