Section 45V Credit for Production of Clean Hydrogen; Section 48(a)(15) Election To Treat Clean Hydrogen Production Facilities as Energy Property; Correction
| Published date | 04 March 2024 |
| Record Number | 2024-04304 |
| Citation | 89 FR 15523 |
| Court | Internal Revenue Service |
| Section | Proposed rules |
Federal Register, Volume 89 Issue 43 (Monday, March 4, 2024)
[Federal Register Volume 89, Number 43 (Monday, March 4, 2024)]
[Proposed Rules]
[Pages 15523-15525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04304]
[[Page 15523]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-117631-23]
RIN 1545-BQ97
Section 45V Credit for Production of Clean Hydrogen; Section
48(a)(15) Election To Treat Clean Hydrogen Production Facilities as
Energy Property; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking; correction.
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SUMMARY: This document corrects a notice of proposed rulemaking (REG-
117631-23) published in the Federal Register on December 26, 2023,
containing proposed regulations relating to the credit for production
of clean hydrogen (clean hydrogen production credit) and the energy
credit, as established and amended respectively by the Inflation
Reduction Act of 2022.
DATES: The public hearing on these proposed regulations is scheduled to
be held on March 25, 2024, at 10 a.m. ET. Requests to speak and
outlines of topics to be discussed at the public hearing must be
received by March 4, 2024.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically. Submit electronic submissions via the Federal
eRulemaking Portal at https://www.regulations.gov (indicate IRS and
REG-117631-23). Once submitted to the Federal eRulemaking Portal,
comments cannot be edited or withdrawn. The Department of the Treasury
(the Treasury Department) and the IRS will publish for public
availability any comment submitted to its public docket. Send paper
submissions to: CC:PA:01:PR (REG-117631-23), Room 5203, Internal
Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC
20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Office of Associate Chief Counsel (Passthroughs & Special Industries)
at (202) 317-6853 (not a toll-free number); concerning submissions of
comments or the public hearing, Vivian Hayes, (202) 317-6901 (not toll-
free number) or by email to [email protected] (preferred).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking (REG-117631-23) that is the
subject of these corrections is under sections 45V and 48(a)(15) of the
Internal Revenue Code.
Need for Correction
As published, the notice of proposed rulemaking (REG-117631-23)
contains errors that need to be corrected.
Correction of Publication
Accordingly, the notice of proposed rulemaking (REG-117631-23),
which was the subject of FR Doc. 2023-28359, published on December 26,
2023, at 88 FR 89220 is corrected:
1. On page 89221, the third column, the eighth line from the bottom
of paragraph ``b. Qualified Clean Hydrogen'', is corrected to read, ``a
U.S. territory (having the''.
2. On page 89222, the third column, the seventh line from the
bottom of the first partial paragraph is corrected to read, ``energy,
beginning of construction, or prevailing wage and''.
3. On page 89223, the third column, the fifth line of the first
partial paragraph is corrected to read, ``addition to the production of
qualified clean''.
4. On page 89223, the third column, in the sixth line of footnote
6. the language ``H2.''is corrected to read, ``H2.''.
5. On page 89223, the third column, the second line from the bottom
of footnote 6. is corrected to read, ``for 45VH2-GREET will be provided
in IRS forms''.
6. On page 89224, the first column, under the heading ``E.
Qualified Clean Hydrogen'', the first full paragraph, the seventh line
from the bottom of the paragraph is corrected to read, ``1(a)(9)(i)
would provide that, to''.
7. On page 89225, the last line of the first column is corrected to
read, ``Credit, or any successor form(s).''
8. On page 89226, the second column, paragraph ``1. Process for
Filing a Provisional Emissions Rate Petition'', the second line from
the bottom of the paragraph is corrected to read, ``Clean Hydrogen
Production Credit, or any successor form(s), to''.
9. On page 89226, the third column, under the heading ``3.
Department of Energy Emissions Value Request Process'' in the second
paragraph, the language ``Sec. 1.45V-5'' in corrected to read, ``Sec.
1.45V-4(c)(5)'', wherever it appears.
10. On page 89227, the second column, under the heading ``C. Use of
Energy Attribute Certificates'' in the second line from the bottom of
the first full paragraph the language, ``GREET Model'' is corrected to
read ``GREET model''.
11. On page 89227, the second column, footnote 9 is corrected to
read, ``\9\ EPA Letter, available at https://home.treasury.gov/system/files/136/45V-NPRM-EPAletter.pdf; DOE, ``Assessing Lifecycle Greenhouse
Gas Emissions Associated with Electricity Use for the Section 45V Clean
Hydrogen Production Tax Credit,'' Washington, DC (2023), available at
www.energy.gov/45vresources.''.
12. On page 89227, the third column, the third line of the first
partial paragraph is corrected to read, ``generating facility rather
than''.
13. On page 89228, the second column, the last two lines of the
first partial paragraph are corrected to read, ``(PJM-GATS); and
Western Renewable Energy Generation Information System (WREGIS).''.
14. On page 89228, the second column, the seventh line from the
bottom of the first full paragraph is corrected to read, ``linked to a
single region. The Midcontinent Independent System Operator, Inc.
(MISO)''.
15. On page 89228, the second column, the fourth line from the
bottom of the first full paragraph is corrected to read, ``as shown in
the map located in the GREET''.
16. On page 89228, the second column, the heading ``2. Eligible
Energy Attribute Certificate Requirements'' is corrected to read, ``2.
Qualifying Energy Attribute Certificate Requirements''.
17. On page 89228, the third column, the sixteenth and seventeenth
lines from the top of the column are corrected to read, ``require that
qualifying EACs represent electricity produced in''.
18. On page 89228, the third column, footnote 12 is corrected to
read, ``\12\ EPA Letter, available at https://home.treasury.gov/system/files/136/45V-NPRM-EPA-letter.pdf; DOE, ``Assessing Lifecycle
Greenhouse Gas Emissions Associated with Electricity Use for the
Section 45V Clean Hydrogen Production Tax Credit,'' Washington, DC
(2023), available at www.energy.gov/45vresources.''.
19. On page 89229, the third column, the third line from the top of
the column is corrected to read, ``lifecycle GHG emissions rate as
determined''.
20. On page 89230, the first column, footnote 13 is corrected to
read, ``\13\ DOE, ``Assessing Lifecycle Greenhouse Gas Emissions
Associated with Electricity Use for the Section 45V Clean Hydrogen
Production Tax Credit,'' Washington, DC (2023), available at
www.energy.gov/45vresources.''.
21. On page 89231, the first column, in the second line from the
bottom of the first full paragraph the language ``state'' is corrected
to read, ``State''.
[[Page 15524]]
22. On page 89231, the second column, in the third line from the
bottom of the first full paragraph the language ``state'' is corrected
to read ``State''.
23. On page 89231, the third column, footnote 17 is corrected to
read, ``\17\ DOE, ``Assessing Lifecycle Greenhouse Gas Emissions
Associated with Electricity Use for the Section 45V Clean Hydrogen
Production Tax Credit,'' Washington, DC (2023), available at
www.energy.gov/45vresources.''.
24. On page 89232, the first column, footnote 20 is corrected to
read, ``\20\ For example, see New York State Energy Research and
Development Authority (NYSERDA), ``Projected Emission Factors for New
York State Grid Electricity,'' NYSERDA Report Number 22-18 (2022),
available at https://www.nyserda.ny.gov/-/media/Project/Nyserda/Files/
Publications/Energy-Analysis/22-18-Projected-Emission-Factors-for-New-
York-Grid-Electricity.pdf.''.
25. On page 89232, the first column, the second line from the
bottom of footnote 21 is corrected to read, ``marginal emissions rates
at or near zero are defined as''.
26. On page 89232, the third column, in the seventh line from the
top of the column the language ``state'' is corrected to read
``State''.
27. On page 89233, the first column, the second partial paragraph
the language ``state'' is corrected to read ``State'' wherever it
appears.
28. On page 89233, the first column, in the eleventh line from the
bottom of the second partial paragraph the language ``federal'' is
corrected to read ``Federal''.
29. On page 89233, the first column, footnote 22 is corrected to
read, ``\22\ DOE, ``Assessing Lifecycle Greenhouse Gas Emissions
Associated with Electricity Use for the Section 45V Clean Hydrogen
Production Tax Credit,'' Washington, DC (2023), available at
www.energy.gov/45vresources.''.
30. On page 89233, the second column, footnote 25. is corrected to
read, ``\25\ DOE, ``Assessing Lifecycle Greenhouse Gas Emissions
Associated with Electricity Use for the Section 45V Clean Hydrogen
Production Tax Credit,'' Washington, DC (2023), available at
www.energy.gov/45vresources.''.
31. On page 89234, the first column, the twentieth line from the
bottom of the first paragraph is corrected to read, ``claimed on the
Form 7210, Clean Hydrogen Production Credit, or any successor form(s),
or the data''.
32. On page 89234, the second column, the tenth and eleventh lines
from the top of the second paragraph are corrected to read, ``(as
defined in section 638(1) or a U.S. territory (having the meaning of''.
33. On page 89235, the first column, the second line from the
bottom of paragraph ``F. General Information Required To Be Included in
Verification Report'' is corrected to read, ``and calibration of the
device(s) has been''.
34. On page 89235, the third column, the seventh line from the
bottom of the first full paragraph is corrected to read, ``kilogram of
hydrogen but for the''.
35. On page 89236, the first column, under the heading ``A.
Overview'' the sixth line from the top of the third paragraph is
corrected to read, ``45V(c)(3) and proposed Sec. 1.45V-''.
36. On page 89236, the third column, under the paragraph ``2.
Special Rule for Partnerships and S Corporations'', in the fourteenth
line from the top of the paragraph the language ``forms(s)'' is
corrected to read ``form(s)''.
37. On page 89236, the third column, the third line from the bottom
of the column is corrected to read, ``claimant's section 48 credit must
be based on''.
38. On page 89237, the first column, the third line from the top of
the column is corrected to read, ``Credit, or any successor form(s),
and''.
39. On page 89237, the first column, the second line from the
bottom of the first partial paragraph the language ``forms(s)'' is
corrected to read ``form(s)''.
40. On page 89237, the first column, the third line from the bottom
of the column is corrected to read, ``5(d) through 1.45V-5(h); (ii)
a''.
41. On page 89239, the first column, the fourth line from the top
of the column is corrected to read, ``generate electricity, or upgrade
to''.
42. On page 89239, the first column, the thirteenth line from the
bottom of the first partial paragraph is corrected to read, ``prior to
the taxable year in which the''.
43. On page 89239, the first column, the tenth line from the bottom
of the first partial paragraph is corrected to read, ``an emissions
value consistent with''.
44. On page 89239, the second column, the third line of paragraph
``(3)'' is corrected to read, ``for RNG certificates in book-and-
claim''.
45. On page 89240, the second column, the fourth line from the top
of the column is corrected to read, ``The Treasury Department and the
IRS are''.
46. On page 89240, the second column, the twenty-second line from
the top of the first full paragraph is corrected to read, ``Department
and the IRS are considering''.
47. On page 89240, the second column, the fourteenth line from the
bottom of the first full paragraph is corrected to read, ``The Treasury
Department and the IRS''.
48. On page 89241, the first column, the fourth line from the top
of the column is corrected to read, ``to the IRS will be performed by
attaching''.
49. On page 89241, the first column, the sixth line from the top of
the column is corrected to read, ``DOE to the filing of Form 7210,
Clean Hydrogen Production Credit, or any successor form(s). The''.
50. On page 89241, the first column, the ninth line from the top of
the column is corrected to read, ``Instructions for Form 7210. Form
7210 will be''.
51. On page 89241, the first column, the ninth line of the second
full paragraph is corrected to read, ``Sec. 1.45V-5. The proposed
regulations also''.
52. On page 89241, the second column, the third line from the top
of the column is corrected to read, ``recordkeeping requirements for''.
53. On page 89241, the second column, the sixteenth line from the
top of the column is corrected to read, ``an unrelated third party. The
annual''.
54. On page 89241, the second column, the sixth line from the
bottom of the column is corrected to read, ``Instructions for Form
3468. The revisions to''.
55. On page 89242, the third column, the fourth line from the
bottom of the first full paragraph is corrected to read, ``their
Federal income tax return or''.
56. On page 89243, the second column, the second line from the top
of the column is corrected to read, ``entrance. In addition, all
visitors must''.
57. On page 89243, the second column, the seventh line of the third
full paragraph is corrected to read, ``regulation number REG-117631-23
and''.
58. On page 89243, the second column, the sixth line from the
bottom of the column is corrected to read, ``received by 5:00 p.m. ET
on March 18,''.
Sec. 1.45V-0 [Corrected]
0
59. On page 89244, the second column, the entry for Sec. 1.45V-6(b) is
corrected to read, ``Retrofit of an existing facility (80/20 Rule.)''.
0
60. On page 89244, the second column, the entry for Sec. 1.45V-6(c)(4)
is corrected to read, ``Example 4: Retrofit of an existing facility
(80/20 Rule).''.
[[Page 15525]]
0
61. On page 89244, the third column, the entry for 1.45V-6(c)(5) is
corrected to read, ``Example 5: Retrofit of an existing facility (80/20
Rule) and coordination with section 45Q credit previously allowed.''.
Sec. 1.45V-1 [Corrected]
0
62. On page 89245, the second column, the third line of paragraph
(a)(7)(iii) is corrected to read, ``addition to the production of
qualified clean''.
0
63. On page 89245, the third column, in the eleventh and twelfth lines
of paragraph (a)(7)(iv) remove the language ``the regulations in this
part under section 45V'' and add in its place the language ``the
section 45V regulations''.
0
64. On page 89246, the first column, the second and third lines of
paragraph (9)(i)(A) are corrected to read, ``section 638(1) of the
Code) or a U.S. territory, which, for purposes of''.
0
65. On page 89246, first column, in the fourth and fifth lines of
paragraph (a)(9)(i)(A) remove the language ``the regulations in this
part under section 45V'' and add in its place the language ``the
section 45V regulations''.
Sec. 1.45V-2 [Corrected]
0
66. On page 89246, the third column, the sixth line from the bottom of
paragraph (a) is corrected to read, ``Rule is satisfied will not be
treated as''.
0
67. On page 89246, the third column, the second sentence of paragraph
(b)(1) is corrected to read, ``A purpose of section 45V and the
regulations under section 45V (and so much of sections 6417 and 6418
and the regulations thereunder related to the section 45V credit) is to
provide taxpayers an incentive to produce qualified clean hydrogen for
a productive use.''.
0
68. On page 89246, the third column, in the second and third lines from
the bottom of paragraph (b)(1) remove the language ``regulations in
this part under section 45V of the Code'' and add in its place the
language ``section 45V regulations''.
0
69. On page 89247, the first column, the fourth line from the bottom of
paragraph (b)(2)(i) is corrected to read, ``of the section 45V credit
by claiming''.
0
70. On page 89247, the first column, the second line from the bottom of
paragraph (b)(2)(i) is corrected to read, ``credit through an election
under''.
Sec. 1.45V-4 [Corrected]
0
71. On page 89248, the first column, the fifth line from the top of
paragraph (c)(3) is corrected to read, ``the DOE's analytical
assessment of the''.
0
72. On page 89248, the first column, the second line from the bottom of
paragraph (c)(3) is corrected to read, ``Clean Hydrogen Production
Credit, or any successor form(s), to''.
0
73. On page 89248, the first column, the sixth and seventh lines of
paragraph (c)(4) are corrected to read, ``be deemed accepted. A
taxpayer may rely upon an emissions value''.
0
74. On page 89248, the first column, in the second and third lines from
the bottom of paragraph (c)(5), remove the language ``regulations in
this part under section 45V'' and add in its place the language
``section 45V regulations''.
0
75. On page 89248, the second column, the heading of paragraph (d) is
corrected to read, ``Use of energy attribute certificates (EACs)- ``.
0
76. On page 89248, the second column, the seventh and eighth lines of
paragraph (d)(1) are corrected to read, ``Secretary determines a PER
for hydrogen produced at''.
0
77. On page 89248, the third column, the twelfth line of paragraph
(d)(1) is corrected to read, ``electricity used to produce hydrogen''.
0
78. On page 89249, the second column, fifth line from the bottom of
paragraph (d)(3)(i)(C) is corrected to read, ``megawatt hours (MWh) (2
MW''.
0
79. On page 89249, the second column, the second line from the bottom
of paragraph (d)(3)(i)(C) is corrected to read, ``hour of Power Plant's
production''.
Sec. 1.45V-5 [Corrected]
0
80. On page 89250, the second column, the first line of paragraph
(e)(1)(ii) is corrected to read, ``The qualified verifier has not been
a''.
Sec. 1.45V-6 [Corrected]
0
81. On page 89251, the second column, the heading of paragraph (b) is
corrected to read, ``Retrofit of an existing facility (80/20 Rule).
0
82. On page 89252, the first column, the eighteenth and nineteenth
lines of paragraph (c)(3)(i) are corrected to read, ``respect to the
new CCE located at Facility Y.''.
0
83. On page 89252, the first column, the heading of paragraph (c)(4) is
corrected to read ``Example 4: Retrofit of an existing facilit (80/20
Rule)--''.
0
84. On page 89252, the first column, the heading of paragraph (c)(5) is
corrected to read, ``Example 5: Retrofit of an existing facility (80/20
Rule) and coordination with section 45Q credit previously allowed--''.
Sec. 1.48-15 [Corrected]
0
85. On page 89252, the third column, the fourth line from the bottom of
paragraph (d)(2) is corrected to read, ``successor form(s), with its
partnership''.
0
86. On page 89254, the first and second columns, in paragraph (f)(5)(i)
the language ``0.44kg/CO2e'' is corrected to read, ``0.44kg of CO2e'',
wherever it appears.
0
87. On page 89254, the first and second columns, in paragraph (f)(5)(i)
the language ``1.4kg/CO2e'' is corrected to read, ``1.4kg of CO2e'',
wherever it appears.
0
On page 89254, the second column, the fifth line of paragraph
(f)(5)(ii) is corrected to read, ``0.44kg of CO2e per kilogram of
hydrogen, which is the rate specified''.
0
88. On page 89254, the third column, the sixth line from the bottom of
paragraph (g) is corrected to read, ``definition of a specified
clean''.
Oluwafunmilayo A. Taylor,
Section Chief, Publications and Regulations Section, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2024-04304 Filed 3-1-24; 8:45 am]
BILLING CODE 4830-01-P
