I 
117TH CONGRESS 
1ST SESSION H. R. 5192 
To amend the Internal Revenue Code of 1986 to establish a credit for 
production of clean hydrogen, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 7, 2021 
Mr. LARSON of Connecticut (for himself, Ms. DELBENE, and Mr. BEYER) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
a credit for production of clean hydrogen, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clean Hydrogen Pro-
duction and Investment Tax Credit Act of 2021’’. 
SEC. 2. CLEAN HYDROGEN. 
(a) CREDIT FOR PRODUCTION OF CLEAN HYDRO-
GEN.— 
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‘‘(A) in the case of any qualified clean hy-
drogen which is produced through a process 
that, as compared to hydrogen produced by 
steam-methane reforming, achieves a percent-
age reduction in lifecycle greenhouse gas emis-
sions which is less than 75 percent, 20 percent, 
‘‘(B) in the case of any qualified clean hy-
drogen which is produced through a process 
that, as compared to hydrogen produced by 
steam-methane reforming, achieves a percent-
age reduction in lifecycle greenhouse gas emis-
sions which is not less than 75 percent and less 
than 85 percent, 25 percent, 
‘‘(C) in the case of any qualified clean hy-
drogen which is produced through a process 
that, as compared to hydrogen produced by 
steam-methane reforming, achieves a percent-
age reduction in lifecycle greenhouse gas emis-
sions which is not less than 85 percent and less 
than 95 percent, 34 percent, and 
‘‘(D) in the case of any qualified clean hy-
drogen which is produced through a process 
that, as compared to hydrogen produced by 
steam-methane reforming, achieves a percent-
age reduction in lifecycle greenhouse gas emis-
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sions which is not less than 95 percent, 100 
percent. 
‘‘(3) INFLATION
ADJUSTMENT.—The $3.00 
amount in paragraph (1) shall be adjusted by multi-
plying such amount by the inflation adjustment fac-
tor (as determined under section 45(e)(2), deter-
mined by substituting ‘2020’ for ‘1992’ in subpara-
graph (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. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) LIFECYCLE
GREENHOUSE
GAS
EMIS-
SIONS.—For purposes of this section, the term 
‘lifecycle greenhouse gas emissions’ has the same 
meaning given such term under subparagraph (H) of 
section 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)), as in effect on the date of enactment of 
this section, as related to the full fuel lifecycle 
through the point of hydrogen production. 
‘‘(2) QUALIFIED CLEAN HYDROGEN.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
clean hydrogen’ means hydrogen which is pro-
duced through a process that, as compared to 
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hydrogen produced by steam-methane reform-
ing, achieves a percentage reduction in lifecycle 
greenhouse gas emissions which is not less than 
40 percent. 
‘‘(B) ADDITIONAL REQUIREMENTS.—Such 
term shall not include any hydrogen unless such 
hydrogen is produced— 
‘‘(i) in the United States (as defined 
in section 638(1) or a possession of the 
United States (as defined in section 
638(2)), 
‘‘(ii) in the ordinary course of a trade 
or business of the taxpayer, and 
‘‘(iii) for sale or use. 
‘‘(3) QUALIFIED
CLEAN
HYDROGEN
PRODUC-
TION FACILITY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
clean hydrogen production facility’ means a fa-
cility owned by the taxpayer which produces 
qualified clean hydrogen and which meets the 
requirements of subparagraph (B). 
‘‘(B) TERMINATION.—The term ‘qualified 
clean hydrogen production facility’ shall not in-
clude any facility the construction of which be-
gins after December 31, 2028. 
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‘‘(4) STEAM-METHANE REFORMING.—The term 
‘steam-methane reforming’ means a hydrogen pro-
duction process in which high-temperature steam is 
used to produce hydrogen from natural gas (other 
than natural gas derived from biomass (as defined 
in section 45K(c)(3)), without carbon capture and 
sequestration. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) TREATMENT
OF
FACILITIES
OWNED
BY 
MORE
THAN
TAXPAYER.—Rules similar to the 
rules section 45(e)(3) shall apply for purposes of 
this section. 
‘‘(2) COORDINATION WITH CREDIT FOR CARBON 
OXIDE SEQUESTRATION.—No credit shall be allowed 
under this section with respect to any qualified clean 
hydrogen produced at a facility which includes prop-
erty for which a credit is allowed under section 45Q. 
‘‘(e) REGULATIONS.—Not later than 1 year after the 
date of enactment of this section, the Secretary, after con-
sultation with the Secretary of Energy and the Adminis-
trator of the Environmental Protection Agency, shall issue 
regulations or other guidance to carry out the purposes 
of this section, including regulations or other guidance— 
‘‘(1) for determining lifecycle greenhouse gas 
emissions, and 
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‘‘(2) which require verification by unrelated 
third parties of the production and sale or use of 
qualified clean hydrogen with respect to which credit 
is otherwise allowed under this section.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 38(b) is amended— 
(i) in paragraph (32), by striking 
‘‘plus’’ at the end, 
(ii) in paragraph (33), by striking the 
period at the end and inserting ‘‘, plus’’, 
and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(34) the clean hydrogen production credit de-
termined under section 45U(a).’’. 
(B) The table of sections for subpart D of 
part IV of subchapter A of chapter 1 amended 
by adding at the end the following new item: 
‘‘Sec. 45U. Credit for production of clean hydrogen.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to hydrogen produced 
after December 31, 2021, at facilities placed in serv-
ice before such date. 
(b) CREDIT FOR ELECTRICITY PRODUCED FROM RE-
NEWABLE RESOURCES ALLOWED
IF ELECTRICITY IS 
USED TO PRODUCE CLEAN HYDROGEN.— 
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(1) IN GENERAL.—Section 45(e) is amended by 
adding at the end the following new paragraph: 
‘‘(12) SPECIAL RULE FOR ELECTRICITY USED 
AT
A
QUALIFIED
CLEAN
HYDROGEN
PRODUCTION 
FACILITY.—Electricity produced by the taxpayer 
shall be treated as sold by such taxpayer to an unre-
lated person during the taxable year if such elec-
tricity is used during such taxable year by the tax-
payer or a person related to the taxpayer at a quali-
fied clean hydrogen production facility (as defined in 
section 45U(d)(3)) to produce qualified clean hydro-
gen (as defined in section 45U(d)(2)) during the 10- 
year period after such facility is placed in service. 
The Secretary shall issue such regulations or other 
guidance as the Secretary determines appropriate to 
carry out the purposes of this paragraph, including 
regulations or other guidance to require verification 
by unrelated third parties of the production and use 
of electricity to which this paragraph applies.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to electricity produced 
after December 31, 2021. 
(c) ELECTION TO TREAT CLEAN HYDROGEN PRO-
DUCTION FACILITIES AS ENERGY PROPERTY.— 
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(1) IN GENERAL.—Section 48(a) is amended by 
adding at the end the following new paragraph: 
‘‘(8) ELECTION TO TREAT CLEAN HYDROGEN 
PRODUCTION FACILITIES AS ENERGY PROPERTY.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified property (as defined in paragraph 
(5)(D)) which is part of a specified clean hydro-
gen production facility— 
‘‘(i) such property shall be treated as 
energy property for purposes of this sec-
tion, and 
‘‘(ii) the energy percentage with re-
spect to such property is— 
‘‘(I) in the case of a facility 
which is designed and reasonably ex-
pected to produce qualified clean hy-
drogen which is described in a sub-
paragraph (A) of section 45U(b)(2), 6 
percent, 
‘‘(II) in the case of a facility 
which is designed and reasonably ex-
pected to produce qualified clean hy-
drogen which is described in a sub-
paragraph (B) of such section, 7.5 
percent, 
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‘‘(III) in the case of a facility 
which is designed and reasonably ex-
pected to produce qualified clean hy-
drogen which is described in a sub-
paragraph (C) of such section, 10.2 
percent, and 
‘‘(IV) in the case of a facility 
which is designed and reasonably ex-
pected to produce qualified clean hy-
drogen which is described in a sub-
paragraph (D) of such section, 30 
percent. 
‘‘(B) DENIAL OF PRODUCTION CREDIT.— 
No credit shall be allowed under section 45U 
for any taxable year with respect to any speci-
fied clean hydrogen production facility. 
‘‘(C) SPECIFIED CLEAN HYDROGEN PRO-
DUCTION FACILITY.—For purposes of this para-
graph, the term ‘specified clean hydrogen pro-
duction facility’ means any qualified clean hy-
drogen production facility (as defined in section 
45U(d)(3)) or any portion of such facility— 
‘‘(i) which is placed in service after 
December 31, 2021, and 
‘‘(ii) with respect to which— 
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‘‘(I) no credit has been allowed 
under section 45U or 45Q, and 
‘‘(II) the taxpayer make an irrev-
ocable election to have this paragraph 
apply. 
‘‘(D) QUALIFIED CLEAN HYDROGEN.—For 
purposes of this paragraph, the term ‘qualified 
clean hydrogen’ has the meaning given such 
term by section 45U(d)(2). 
‘‘(E) REGULATIONS.—The Secretary shall 
issue such regulations or other guidance as the 
Secretary determines necessary or appropriate 
to carry out the purposes of this section, includ-
ing regulations or other guidance which— 
‘‘(i) requires verification by unrelated 
third parties that the facility produces hy-
drogen which is consistent with the hydro-
gen that such facility was designed and ex-
pected to produce under subparagraph 
(A)(ii), and 
‘‘(ii) recaptures so much of any credit 
allowed under this section as exceeds the 
amount of the credit which would have 
been allowed if the expected production 
were consistent with the actual verified 
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production (or all of the credit so allowed 
in the absence of such verification).’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this section shall apply to periods after December 
31, 2021, under rules similar to the rules of section 
48(m) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990). 
(d) TERMINATION OF EXCISE TAX CREDIT FOR HY-
DROGEN.— 
(1) 
IN
GENERAL.—Section 
6426(d)(2) 
is 
amended by striking subparagraph (D) and by re-
designating subparagraphs (E), (F), and (G) as sub-
paragraphs (D), (E), and (F), respectively. 
(2) 
CONFORMING
AMENDMENT.—Section 
6426(e)(2) is amended by striking ‘‘(F)’’ and insert-
ing ‘‘(E)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to fuel sold or used 
after December 31, 2021. 
Æ 
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