The open comment period for the US Treasury guidance on the 45V Production Tax Credits ended on Feb. 26 and generated more than 29,000 letters from industry stakeholders. Many have criticized the guidance as being overly restrictive, favoring stricter interpretations of low-carbon hydrogen production that could harm the growth of the industry.
The 45V Section of the Inflation Reduction Act allows for a production tax credit of up to $3/kg of hydrogen produced. Ammonia producers who produce their own hydrogen can be eligible for the credit if they follow the low-carbon production guidelines. A public hearing on the guidance is set for the end of March.