For the single most important driver of IRA-attributable technologies that neither combust fuel nor gasify fuel, emissions reductions over the next decade, so much of such as wind, solar, and nuclear power, the emissions the success of the IRA in reducing emissions hinges on from the generation of the electricity must be zero. [...] If a facility has an emissions rate Unlike the tax credit for hydrogen production, for of over 10 g CO e/kWh during the five years after the 2 which lifecycle emissions are determined on a facility- ITC is issued, however, a fraction of the tax credit will be by-facility basis, for the 45Y and 48E tax credits, the “recaptured” by the Internal Revenue Service. [...] produced either by a “new unit” or “any additions The IRA refers to the part of the Clean Air Act (42 USC of capacity.” Treasury has a longstanding “80/20” 7545) that governs the renewable fuels standard (RFS) guidance that it will likely follow to allow 20 percent of for the determination of the lifecycle emissions, so the value of a facility to be from an existing facility while Treasury could d. [...] If that, in turn, leads to a zero emissions foundational to realizing projected emissions reductions rate for the purposes of the PTC and the ITC, generating from the IRA, underscoring their importance to the Biden hydrogen from electricity could receive two tax administration’s efforts to decarbonize the power sector. [...] Furthermore, if the electrolyzer is directly connected with a clean generator, Given the tight timing for the transition to these tax the final production of electricity could receive three credits in 2025 and the need for advance planning by tax credits: the 45Y or 48E credit twice and the 45V developers, Treasury will need to publish guidance in the hydrogen production tax credit once.
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- United States of America
