Modifying clean hydrogen production credit

(a) In general Section 45V of the Internal Revenue Code of 1986, as amended by section 70511 of Public Law 119–21, is amended— (1) in subsection (a), by striking paragraph (2) and inserting the following: (2) $0.60., (2) by striking subsection (b) and inserting the following: (b) Inflation adjustment The $0.60 amount in subsection (a)(2) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting 2024 for 1992 in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent., (3) in subsection (c)— (A) by striking paragraph (1), (B) in paragraph (2)— (i) by striking subparagraph (A) and inserting the following: (A) Definition (i) In general The term qualified clean hydrogen means hydrogen produced using an electrolyzer for which the electricity used is— (I) produced at a facility which— (aa) uses qualified renewable energy resources to produce such electricity, (bb) was placed in service not greater than 36 months prior to the date on which the facility which produces such hydrogen was placed in service, and (cc) is in the same region (as defined in the National Transmission Needs Study of the Department of Energy, dated October 30, 2023) as the facility which produces such hydrogen, and (II) produced at the facility described in subclause (I) not less than 1 hour prior to use by the electrolyzer. (ii) Qualified renewable energy resources The term qualified renewable energy resources means— (I) wind, (II) solar energy, (III) geothermal energy (as defined in section 45(c)(4)), (IV) marine and hydrokinetic renewable energy (as defined in section 45(c)(10)), and (V) hydropower., and (ii) by striking subparagraph (C), (C) in paragraph (3)(C), by inserting, and which is placed in service after December 31, 2025 after January 1, 2028, and (D) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively, (4) in subsection (e)— (A) in paragraph (1), by striking described in subsection (b)(2) and inserting produced by the taxpayer, and (B) in paragraph (3)(A)(ii), by striking subsection (a)(2) and inserting subsection (a)(1), and (5) in subsection (f), by striking, including regulations or other guidance for determining lifecycle greenhouse gas emissions. (b) Conforming amendments (1) Section 45(e)(13) of the Internal Revenue Code of 1986 is amended by striking section 45V(c)(3)) to produce qualified clean hydrogen (as defined in section 45V(c)(2)) and inserting section 45V(c)(2)) to produce qualified clean hydrogen (as defined in section 45V(c)(1)). (2) Section 48(a)(15) of such Code is amended— (A) in subparagraph (A), by striking clause (ii) and inserting the following: (ii) the energy percentage with respect to such property is 6 percent., (B) in subparagraph (C)— (i) by striking section 45V(c)(3) and inserting section 45V(c)(2), and (ii) in clause (i), by striking December 31, 2022 and inserting December 31, 2025, and (C) in subparagraph (D), by striking section 45V(c)(2) and inserting section 45V(c)(1). (3) Section 6417 of such Code is amended— (A) in subsection (b)(5), by striking December 31, 2012 and inserting December 31, 2025, and (B) in subsection (d)(1)(B), by striking section 45V(c)(3) and inserting section 45V(c)(2). (c) Effective date The amendments made by this section shall apply to facilities placed in service after December 31, 2025.