Tax Credits for Clean Hydrogen Production Facilities: Hydrogen ITC, 45V PTC, Recent IRS Guidance, Eligibility

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Energy
- event Date
Thursday, March 28, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will provide attorneys with an in-depth analysis of key components of recent IRS regulations and guidance for tax credits for clean hydrogen production facilities as well as critical considerations for clean hydrogen developers and investors. The panel will discuss utilizing Section 45V credit for the production of clean hydrogen and the investment tax credit under Section 48(a)(15) for investment in and, development of clean hydrogen production projects. The panel will also discuss what projects are eligible, recent IRS guidance and requirements, and other critical items in determining the use of 45V PTC and hydrogen ITC.
Faculty

Ms. Collins focuses on tax matters related to project finance, with an emphasis on renewable energy and infrastructure assets. She has represented clients in the financing, disposition, acquisition, and development of renewable energy and energy transition projects, including solar, wind, energy storage, hydrogen, carbon sequestration, fuel cell, biogas, RNG, and manufacturing facilities, among others. Ms. Collins has considerable experience utilizing a variety of structures to finance these assets and has helped develop some of the most complex and cutting-edge renewable energy financing transactions in the U.S., including numerous first-of-its-kind deals. She represents Fortune 50 companies, investors, utilities, sponsors, and developers in the renewable energy space and has advised clients more broadly in connection with various federal and state tax matters. Ms. Collins experience includes tax equity, tax credit finance and sales, M&A, reorganizations and bankruptcy, project finance, and structured finance.

Mr. Platner provides strategic counsel on legal, legislative and regulatory issues, including tax, energy, and international trade. He has extensive experience developing and implementing successful government relations programs. Mr. Platner has a refined understanding of the political landscape, supported by technical knowledge and a wealth of experience drafting issue papers, advising on legislative and regulatory matters, and building and advocating winning legislative strategies for participants in energy and related markets. Prior to joining the firm, Mr. Platner was a lobbyist and the Tax Director for the American Petroleum Institute from 1992-2009 and the Tax and International Trade Counsel for U.S. Senator John H. Chafee from 1988 to 1992.

Mr. Staiger is a member of the firm’s tax section and concentrates his practice in business law and taxation, with a specific focus on energy-related projects. He frequently represents clients involved in renewable energy and energy transition projects, including solar, wind, carbon sequestration, biodiesel and renewable fuels. Mr. Staiger has represented investors and developers in connection with the development, acquisition and disposition of renewable projects. He also has extensive experience representing oil and gas producers and midstream companies operating in Pennsylvania, Ohio, West Virginia, Texas and Oklahoma in connection with the acquisition and disposition of oil and gas assets. Mr. Staiger's experience includes negotiating joint development and exploration agreements, gas gathering and processing agreements; physical gas trading and marketing agreements, including NAESB, ISDA with Gas Annex and related contracts, mineral conveyances, title certification and diligence, IADC drilling contracts, farmout agreements, services agreements, pipeline rights of way and other agreements related to joint ventures.
Description
Hydrogen presents opportunities to assist in the power sector by providing energy storage solutions for off-grid electricity and balancing electricity systems and other sectors such as heavy-duty transportation, manufacturing, and heating. Attorneys, developers, and investors involved in or seeking to establish clean hydrogen production facilities must understand the interplay between hydrogen tax credits and clean energy development and key considerations when determining which tax credit to utilize.
On Dec. 22, 2023, the IRS released proposed regulations addressing (1) the Section 45V credit for the production of clean hydrogen which provides a production tax credit for hydrogen produced over a 10-year period and (2) the investment tax credit under Section 48(a)(15) which can be used in lieu of the Section 45V. Contrary to the 45V PTC, the hydrogen ITC allows for a credit equal to a portion of the cost of certain property for the taxable year in which the clean hydrogen production facility is placed in service. However, determining which credit to utilize depends on a variety of factors that must be considered.
Although the potential benefits of using hydrogen and related products in energy are attractive, energy and tax attorneys must be aware of potential regulatory issues, available tax credits, and other legal matters for hydrogen and related product production, application, and usage.
Listen as our panel discusses utilizing the Section 45V credit for the production of clean hydrogen and the investment tax credit under Section 48(a)(15) for clean hydrogen investment. The panel will also discuss what projects are eligible, monetizing the hydrogen credits, recent IRS guidance and requirements, and other critical items in determining the use of 45V PTC and hydrogen ITC.
Outline
- Overview of hydrogen usage; applications
- Summary of the Section 45V credit for the production of clean hydrogen and the investment tax credit under Section 48(a)(15) for clean hydrogen investment
- New IRS regs and guidance
- Key considerations for energy companies, utilities, and investors
Benefits
The panel will review these and other key issues:
- What are the potential uses of hydrogen in the renewable energy sector?
- Key factors in determining qualification for a monetization of 45V PTC and Section 48(a)(15) ITC
- Recent IRS guidance and key considerations and challenges for clean energy projects
- What are the key considerations for investors and developers for hydrogen-related energy?
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