NovoHydrogen’s recent comments on the 45V Clean Hydrogen Tax Credit have been featured among the most notable submissions by law firm Baker Botts. The IRS had requested comments on the proposed regulations for the tax credit, and the response was overwhelming, with over 29,000 comment letters submitted.

With the help of AI technology, law firm Baker Botts was able to filter through the deluge of repetitive individual comments to identify the most substantive and relevant letters from key players in the hydrogen industry.

We at NovoHydrogen are proud that our comments were among those featured in Baker Botts’ curated list of 370+ notable submissions. As a leading green hydrogen project developer, we felt it was critical to provide our perspective and recommendations on this important tax credit.

Key Points in our Comments

In our comments, we raised several key points:

• We proposed an hourly calculation period for lifecycle GHG emission rates. This would better reflect the actual carbon intensity of electricity used in hydrogen production.
• We suggested allowing venting and flaring of hydrogen for safety, testing, and routine maintenance. This would avoid penalizing producers.
• We recommended establishing the GREET model for a hydrogen production facility at the start of construction. This would provide more certainty for investors.
• We proposed determining incrementality based on the placed in service date of an electricity generation facility. This would align with other energy transition credits.

Committed to Advancing Green Hydrogen

At NovoHydrogen, we are dedicated to advancing the green hydrogen economy. We believe that well-crafted tax incentives like 45V will play a vital role in this effort. We appreciate the IRS’s consideration of our comments and eagerly await the final regulations that will shape the future of clean hydrogen production in the US.

To read our full comments and explore the other notable submissions identified by Baker Botts, check out their article: “With a Little Help from Our (AI) Friends: We Filtered the 29,000+ Comment Letters on the 45V Clean Hydrogen Tax Credit to Find the Ones You Want to Read“.