The Internal Revenue Service (IRS) and U.S. Department of the Treasury (Treasury) issued proposed regulations, published in the Federal Register Dec. 26, 2023, applicable to clean hydrogen production facilities.

Notably, the proposed regulations address:

  • determining lifecycle greenhouse gas (GHG) emissions rates resulting from hydrogen production processes and how taxpayers may use energy attribute certificates for this purpose;
  • petitioning for provisional emissions rates;
  • verifying production and sale or use of clean hydrogen;
  • modifying or retrofitting existing qualified clean hydrogen production facilities to establish a new original placed-in-service date (using the familiar 80/20 Rule);
  • 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 Section 48 investment tax credit (ITC) in respect of such facility.

Continue reading the full GT Alert.

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Photo of Jeffrey A. Chester Jeffrey A. Chester

Jeff Chester, Global Head of Energy Project Finance, has deep experience handling transactions related to renewable energy, having closed more than 100 wind and solar power projects throughout the United States and Mexico. Jeff has been centrally involved in the development of the…

Jeff Chester, Global Head of Energy Project Finance, has deep experience handling transactions related to renewable energy, having closed more than 100 wind and solar power projects throughout the United States and Mexico. Jeff has been centrally involved in the development of the equity, debt, and capital markets for renewable energy projects and represents developers, sponsors, lenders, and investors in a wide variety of energy finance transactions. He counsels a broad range of participants on renewable energy finance transactions involving construction and term debt, backleverage, tax equity (partnership flips and sale leasebacks), and private equity capital financings.

Jeff also regularly negotiates on behalf of clients in renewable energy development matters, including power purchase agreements, turbine and solar panel supply agreements, EPC agreements, hedges, and other off-take arrangements. Additionally, he assists clients in addressing an array of development issues including transmission and interconnection, real estate procurement, and environmental issues.

Photo of David Gillespie David Gillespie

David Gillespie is a transactional lawyer focusing on tax, energy transition and infrastructure. He regularly advises clients on energy-related tax credits under the Inflation Reduction Act from both project development and financing perspectives. His practice includes project development, tax-equity financings, cross-border and domestic…

David Gillespie is a transactional lawyer focusing on tax, energy transition and infrastructure. He regularly advises clients on energy-related tax credits under the Inflation Reduction Act from both project development and financing perspectives. His practice includes project development, tax-equity financings, cross-border and domestic mergers and acquisitions, leasing and other complex transactions, with a concentration in renewable energy. David’s experience includes advising developers, sponsors, major financial institutions, tax equity investors, energy and infrastructure funds, among others in a wide range of sectors, including solar, wind, battery storage, electric vehicles, carbon capture and sequestration, geothermal, nuclear, renewable natural gas, hydro, clean fuels, conventional power, transportation, social infrastructure, rail, aviation, and maritime.

David previously was a founder of an international advisory business for the structured financing of energy, transportation, and infrastructure assets.

Photo of Margaret J. Weil Margaret J. Weil

Margaret J. Weil focuses her practice on tax planning and advice for private equity transactions, mergers and acquisitions, financings, and other commercial transactions. She advises domestic and international corporations, partnerships, and high-net-worth individuals on a broad range of tax matters, including domestic and…

Margaret J. Weil focuses her practice on tax planning and advice for private equity transactions, mergers and acquisitions, financings, and other commercial transactions. She advises domestic and international corporations, partnerships, and high-net-worth individuals on a broad range of tax matters, including domestic and cross-border M&A, securities offerings, restructurings, tax compliance, and the federal, state, and international tax developments that affect their transactions and ongoing business operations.

Photo of Thomas R. Brill Thomas R. Brill

Thomas R. Brill has deep legal and management experience in the energy industry and has represented clients in virtually every electricity and natural gas restructuring proceeding in California for over three decades. Tom also has comprehensive experience in regulatory litigation, as well as…

Thomas R. Brill has deep legal and management experience in the energy industry and has represented clients in virtually every electricity and natural gas restructuring proceeding in California for over three decades. Tom also has comprehensive experience in regulatory litigation, as well as strategy and policy development to address rapidly changing laws, regulations, and market dynamics as well as technological disruptions that are leading to significant changes in the energy industry. Tom also has comprehensive experience addressing issues related to the integration of central station and distributed renewable generation, including electricity storage, smart grid technologies, and the impacts of utility rate design and cost allocation on competitive entry by third party providers and utility stranded cost exposure.