IRC §45V · production credit
Section 45V: selling the Clean Hydrogen Production Credit
A per-kilogram credit for low-emission hydrogen, tiered by lifecycle emissions. The 2025 law moved the construction deadline to the end of 2027.
Verified · IRS Form 7210, Clean Hydrogen Production Credit
At a glance · §45V
- What it rewards
- Each kilogram of qualified clean hydrogen produced at a qualified facility, tiered by lifecycle greenhouse-gas emissions.
- Type
- Production credit (PTC): earned per unit produced or sold
- Rate
- A percentage (20%, 25%, 33.4% or 100%, by emissions tier) of $0.60 per kg; five times that with prevailing wage and apprenticeship, so up to $3.00 per kg before inflation adjustment.
- Credit period
- 10 years from the date the facility is placed in service. A transfer election is made separately for each facility and each year.
- Claimed on
- Form 7210, carried to Form 3800
- Transferable?
- Yes, under §6418.
- Status
- Closing Construction must begin before 1 January 2028.
- Key dates
- : §45V: construction must begin before 1 January 2028
- Last verified
Who earns it and how it is measured
The credit is earned on each kilogram of qualified clean hydrogen produced at a qualified clean hydrogen production facility during the 10 years after the facility is placed in service[1].
The amount depends on the lifecycle greenhouse-gas emissions of the production process. It is a percentage of $0.60 per kg: 20% for 2.5 to 4 kg of CO2e per kg of hydrogen, 25% for 1.5 to 2.5, 33.4% for 0.45 to 1.5, and 100% below 0.45[1]. With the prevailing wage and apprenticeship requirements met, the amount is five times higher, up to $3.00 per kg for the cleanest tier before inflation adjustment[1].
The deadline
A facility qualifies only if its construction begins before 1 January 2028[1]. For projects still in development, the begin-construction evidence is now the most important document in the file.
Selling it
§45V is sold separately for each facility and each tax year of its 10-year period[2].
- Register each facility and renew the registration for each year you sell[3], at least 120 days before the return’s due date[4].
- Claim on Form 7210[5] and report the transfer on Form 3800, Part III, column (f)[6].
- Attach the transfer election statement to an original, timely return[7].
What buyers ask for on a §45V deal: the lifecycle emissions analysis that supports the tier; production records; the begin-construction evidence; and prevailing wage and apprenticeship records for the higher amount. An emissions tier set too high is the main excessive-transfer risk, and the buyer repays any excess plus 20% unless it shows reasonable cause[2].
Frequently asked questions
Does the specified-foreign-entity transfer bar apply to §45V?
The statutory bar lists §§45Q, 45U, 45X, 45Y, 45Z and 48E; §45V is not among them[2].
Which form is used for §45V?
Form 7210, Clean Hydrogen Production Credit[5].
Market price
No credit-specific price is published for §45V; across the market, most transferable credits sold for 80 to 96 cents per dollar in 2026; large, insured, investment-grade deals near the top and small uninsured deals near the bottom.[Cenet Capital]
Market estimate, not an offer. Prices move with buyer demand, deal size, seller credit quality, insurance and foreign-entity exposure. Run your own figures in the Credit Value Estimator, or compare every published report on the prices page.
Deadlines for §45V
- §45V: construction must begin before 1 January 2028Hydrogen facilities must begin construction before 1 January 2028 to qualify.
Sources
- 26 U.S.C. § 45V — Credit for production of clean hydrogen
- 26 U.S.C. § 6418 — Transfer of certain credits
- 26 CFR § 1.6418-4 — Additional information and registration
- Register for elective payment or transfer of credits (page updated 12 Aug 2026)
- About Form 7210, Clean Hydrogen Production Credit
- Instructions for Form 3800 (2025)
- 26 CFR § 1.6418-2 — Rules for making transfer elections
- Tax credit price calculator: what is your credit worth in cash? (7 Oct 2026)