On November 3, 2022, the Department of Treasury (Treasury) issued a Request for Comments to help it develop guidance to implement the IRC section 45V clean hydrogen production tax credit and the section 45Z clean fuel production tax credit established in the IRA.
The request on the 45V credit asked for comments on the definition of qualified clean hydrogen, including what should be included in accounting for “lifecycle greenhouse gas emissions” as defined by the Act to include only “emissions through the point of production (well-to-gate),” how GHG emissions should be allocated to co-products from the hydrogen production process, how emissions should be allocated to clean hydrogen as a by-product of industrial processes, how hydrogen production should be verified using the GREET model or other tools, and what type of time matching should be required (annual, hourly, or other) for energy inputs, among other questions.
The request on the 45Z credit asked for comments on considerations on the sale of fuel, methodologies for determining sustainable aviation fuels, provisional emissions rates, certification options for supply chain traceability in sustainable aviation fuel transactions under the Carbon Offsetting and Reduction Scheme for International Aviation, among other questions.
The deadline to submit initial comments was December 3, 2022.