,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #eaib  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #g1         
#bjba,mr4 ,l>son ( ,connecticut 7=      
himself1 ,ms4 ,del,bene1 & ,mr4 ,bey]7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to e/abli% a cr$it =      
production ( clean hydrog51 & = o!r     
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,clean ,hydrog5 ,production
 & ,inve/m5t ,tax ,cr$it ,act ( #bjba4  
#b4 ,clean hydrog5  7a7 ,cr$it =        
production ( clean hydrog5  7#a7 ,9     
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a is am5d$ by add+ at ! end ! 
foll[+ new section3  #de,u4 ,cr$it =    
production ( clean hydrog5  7a7 ,am\nt (
 cr$it ,= purposes ( section #ch1 !     
clean hydrog5 production cr$it = any    
taxable ye> is an am\nt equal to !      
product (-- 7#a7 ! applicable am\nt1    
multipli$ by  7#b7 ! kilograms (        
qualifi$ clean hydrog5 produc$ by !     

taxpay] dur+ su* taxable ye> at a       
qualifi$ clean hydrog5 production       
facility dur+ ! #aj-ye> p]iod beg9n+ on 
! date su* facility 0 orig9ally plac$ 9 
s]vice4  7b7 ,applicable am\nt  7#a7 ,9 
g5]al ,= purposes ( subsection 7a77#a71 
! applicable am\nt %all be an am\nt     
equal to ! applicable p]c5tage ( #c4jj4 
,if any am\nt z det]m9$ "u ! prec$+     
s5t5ce is n a multiple ( #j4a c5t1 su*  
am\nt %all be r\nd$ to ! ne>e/ multiple 
( #j4a c5t4  7#b7 ,applicable p]c5tage  
,= purposes ( p>agraph 7#a71 ! t]m      
applicable p]c5tage means-- 7,a7 9 !    
case ( any qualifi$ clean hydrog5 :i* is
 produc$ ?r\gh a process t1 z comp>$ to 
hydrog5 produc$ by /eam-me?ane re=m+1   
a*ieves a p]c5tage r$uction 9 lifecycle 
gre5h\se gas emissions :i* is less ?an  
#ge p]c5t1 #bj p]c5t1  7,b7 9 ! case (  
any qualifi$ clean hydrog5 :i* is       
produc$ ?r\gh a process t1 z comp>$ to  
hydrog5 produc$ by /eam-me?ane re=m+1   
a*ieves a p]c5tage r$uction 9 lifecycle 
gre5h\se gas emissions :i* is n less ?an

 #ge p]c5t & less ?an #he p]c5t1 #be    
p]c5t1  7,c7 9 ! case ( any qualifi$    
clean hydrog5 :i* is produc$ ?r\gh a    
process t1 z comp>$ to hydrog5 produc$  
by /eam-me?ane re=m+1 a*ieves a p]c5tage
 r$uction 9 lifecycle gre5h\se gas      
emissions :i* is n less ?an #he p]c5t & 
less ?an #ie p]c5t1 #cd p]c5t1 &  7,d7 9
 ! case ( any qualifi$ clean hydrog5 :i*
 is produc$ ?r\gh a process t1 z comp>$ 
to hydrog5 produc$ by /eam-me?ane re=m+1
 a*ieves a p]c5tage r$uction 9 lifecycle
 gre5h\se gas emissions :i* is n less   
?an #ie p]c5t1 #ajj p]c5t4  7#c7        
,inflation adju/m5t ,! #c4jj am\nt 9    
p>agraph 7#a7 %all be adju/$ by         
multiply+ su* am\nt by ! inflation      
adju/m5t factor 7z det]m9$ "u section   
#de7;e77#b71 det]m9$ by sub/itut+ #bjbj 
= #aiib 9 subp>agraph 7,b7 !re(7 = !    
cal5d> ye> 9 :i* ! qualifi$ clean       
hydrog5 is produc$4 ,if any am\nt z     
increas$ "u ! prec$+ s5t5ce is n a      
multiple ( #j4a c5t1 su* am\nt %all be  
r\nd$ to ! ne>e/ multiple ( #j4a c5t4   

7c7 ,def9itions ,= purposes ( ?is       
section-- 7#a7 ,lifecycle gre5h\se gas  
emissions ,= purposes ( ?is section1 !  
t]m lifecycle gre5h\se gas emissions has
 ! same mean+ giv5 su* t]m "u           
subp>agraph 7,h7 ( section #baa7o77#a7 (
 ! ,clean ,air ,act 7#db ,u4,s4,c4      
#gede7o77#a771 z 9 effect on ! date (   
enactm5t ( ?is section1 z relat$ to !   
full fuel lifecycle ?r\gh ! po9t (      
hydrog5 production4  7#b7 ,qualifi$     
clean hydrog5  7,a7 ,9 g5]al ,! t]m     
qualifi$ clean hydrog5 means hydrog5 :i*
 is produc$ ?r\gh a process t1 z comp>$ 
to hydrog5 produc$ by /eam-me?ane re=m+1
 a*ieves a p]c5tage r$uction 9 lifecycle
 gre5h\se gas emissions :i* is n less   
?an #dj p]c5t4  7,b7 ,additional        
requirem5ts ,su* t]m %all n include any 
hydrog5 unless su* hydrog5 is produc$-- 
7i7 9 ! ,unit$ ,/ates 7z def9$ 9 section
 #fch7a7 or a possession ( ! ,unit$     
,/ates 7z def9$ 9 section #fch7b771     
7ii7 9 ! ord9>y c\rse ( a trade or      
bus9ess ( ! taxpay]1 &  7iii7 = sale or 

use4  7#c7 ,qualifi$ clean hydrog5      
production facility  7,a7 ,9 g5]al ,!   
t]m qualifi$ clean hydrog5 production   
facility means a facility own$ by !     
taxpay] :i* produces qualifi$ clean     
hydrog5 & :i* meets ! requirem5ts (     
subp>agraph 7,b74  7,b7 ,t]m9ation ,!   
t]m qualifi$ clean hydrog5 production   
facility %all n include any facility !  
con/ruction ( :i* beg9s aft] ,decemb]   
#ca1 #bjbh4  7#d7 ,/eam-me?ane re=m+ ,! 
t]m /eam-me?ane re=m+ means a hydrog5   
production process 9 :i* high-temp]ature
 /eam is us$ to produce hydrog5 f       
natural gas 7o!r ?an natural gas d]iv$ f
 biomass 7z def9$ 9 section             
#de,k7c77#c771 )\t c>bon capture &      
seque/ration4  7d7 ,special rules  7#a7 
,treatm5t ( facilities own$ by m ?an #a 
taxpay] ,rules simil> to ! rules section
 #de7;e77#c7 %all apply = purposes ( ?is
 section4  7#b7 ,coord9ation ) cr$it =  
c>bon oxide seque/ration ,no cr$it %all 
be all[$ "u ?is section ) respect to any
 qualifi$ clean hydrog5 produc$ at a    

facility :i* includes prop]ty = :i* a   
cr$it is all[$ "u section #de,q4  7e7   
,regulations ,n lat] ?an #a ye> aft] !  
date ( enactm5t ( ?is section1 !        
,secret>y1 aft] consultation ) !        
,secret>y ( ,en]gy & ! ,adm9i/rator ( ! 
,environm5tal ,protection ,ag5cy1 %all  
issue regulations or o!r guidance to    
c>ry out ! purposes ( ?is section1      
includ+ regulations or o!r guidance--   
7#a7 = det]m9+ lifecycle gre5h\se gas   
emissions1 &  7#b7 :i* require          
v]ification by unrelat$ ?ird p>ties ( ! 
production & sale or use ( qualifi$     
clean hydrog5 ) respect to :i* cr$it is 
o!rwise all[$ "u ?is section4  4  7#b7  
,con=m+ am5dm5ts  7,a7 ,section #ch7;b7 
is am5d$-- 7i7 9 p>agraph 7#cb71 by     
/rik+ plus at ! end1  7ii7 9 p>agraph   
7#cc71 by /rik+ ! p]iod at ! end &      
ins]t+ 1 plus1 &  7iii7 by add+ at ! end
 ! foll[+ new p>agraph3  7#cd7 ! clean  
hydrog5 production cr$it det]m9$ "u     
section #de,u7a74  4  7,b7 ,! table (   
sections = subp>t ,d ( "p ,,iv (        

sub*apt] ,a ( *apt] #a am5d$ by add+ at 
! end ! foll[+ new item3  ,sec4 #de,u4  
,cr$it = production ( clean hydrog54  4 
7#c7 ,effective date ,! am5dm5ts made by
 ?is subsection %all apply to hydrog5   
produc$ aft] ,decemb] #ca1 #bjba1 at    
facilities plac$ 9 s]vice be=e su* date4
  7b7 ,cr$it = electricity produc$ f    
r5ewable res\rces all[$ if electricity  
is us$ ,to produce clean hydrog5  7#a7  
,9 g5]al ,section #de7;e7 is am5d$ by   
add+ at ! end ! foll[+ new p>agraph3    
7#ab7 ,special rule = electricity us$ at
 a qualifi$ clean hydrog5 production    
facility ,electricity produc$ by !      
taxpay] %all be treat$ z sold by su*    
taxpay] to an unrelat$ p]son dur+ !     
taxable ye> if su* electricity is us$   
dur+ su* taxable ye> by ! taxpay] or a  
p]son relat$ to ! taxpay] at a qualifi$ 
clean hydrog5 production facility 7z    
def9$ 9 section #de,u7d77#c77 to produce
 qualifi$ clean hydrog5 7z def9$ 9      
section #de,u7d77#b77 dur+ ! #aj-ye>    
p]iod aft] su* facility is plac$ 9      

s]vice4 ,! ,secret>y %all issue su*     
regulations or o!r guidance z !         
,secret>y det]m9es appropriate to c>ry  
out ! purposes ( ?is p>agraph1 includ+  
regulations or o!r guidance to require  
v]ification by unrelat$ ?ird p>ties ( ! 
production & use ( electricity to :i*   
?is p>agraph applies4  4  7#b7          
,effective date ,! am5dm5t made by ?is  
subsection %all apply to electricity    
produc$ aft] ,decemb] #ca1 #bjba4  7c7  
,election ,to treat clean hydrog5       
production facilities z en]gy prop]ty   
7#a7 ,9 g5]al ,section #dh7;a7 is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#h7 ,election to treat clean hydrog5   
production facilities z en]gy prop]ty   
7,a7 ,9 g5]al ,9 ! case ( any qualifi$  
prop]ty 7z def9$ 9 p>agraph 7#e77;,d77  
:i* is "p ( a specifi$ clean hydrog5    
production facility-- 7i7 su* prop]ty   
%all be treat$ z en]gy prop]ty =        
purposes ( ?is section1 &  7ii7 ! en]gy 
p]c5tage ) respect to su* prop]ty is--  
7,i7 9 ! case ( a facility :i* is       

design$ & reasonably expect$ to produce 
qualifi$ clean hydrog5 :i* is describ$ 9
 a subp>agraph 7,a7 ( section           
#de,u7b77#b71 #f p]c5t1  7,,ii7 9 ! case
 ( a facility :i* is design$ &          
reasonably expect$ to produce qualifi$  
clean hydrog5 :i* is describ$ 9 a       
subp>agraph 7,b7 ( su* section1 #g4e    
p]c5t1  7,,iii7 9 ! case ( a facility   
:i* is design$ & reasonably expect$ to  
produce qualifi$ clean hydrog5 :i* is   
describ$ 9 a subp>agraph 7,c7 ( su*     
section1 #aj4b p]c5t1 &  7,,iv7 9 ! case
 ( a facility :i* is design$ &          
reasonably expect$ to produce qualifi$  
clean hydrog5 :i* is describ$ 9 a       
subp>agraph 7,d7 ( su* section1 #cj     
p]c5t4  7,b7 ,d5ial ( production cr$it  
,no cr$it %all be all[$ "u section #de,u
 = any taxable ye> ) respect to any     
specifi$ clean hydrog5 production       
facility4  7,c7 ,specifi$ clean hydrog5 
production facility ,= purposes ( ?is   
p>agraph1 ! t]m specifi$ clean hydrog5  
production facility means any qualifi$  

clean hydrog5 production facility 7z    
def9$ 9 section #de,u7d77#c77 or any    
portion ( su* facility-- 7i7 :i* is     
plac$ 9 s]vice aft] ,decemb] #ca1 #bjba1
 &  7ii7 ) respect to :i*-- 7,i7 no     
cr$it has be5 all[$ "u section #de,u or 
#de,q1 &  7,,ii7 ! taxpay] make an      
irrevocable election to h ?is p>agraph  
apply4  7,d7 ,qualifi$ clean hydrog5 ,= 
purposes ( ?is p>agraph1 ! t]m qualifi$ 
clean hydrog5 has ! mean+ giv5 su* t]m  
by section #de,u7d77#b74  7,e7          
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z !        
,secret>y det]m9es necess>y or          
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations or o!r    
guidance :i*-- 7i7 requires v]ification 
by unrelat$ ?ird p>ties t ! facility    
produces hydrog5 :i* is consi/5t ) !    
hydrog5 t su* facility 0 design$ &      
expect$ to produce "u subp>agraph       
7,a77ii71 &  7ii7 recaptures s mu* ( any
 cr$it all[$ "u ?is section z exce$s !  
am\nt ( ! cr$it :i* w\ld h be5 all[$ if 

! expect$ production 7 consi/5t ) !     
actual v]ifi$ production 7or all ( !    
cr$it s all[$ 9 ! abs5ce ( su*          
v]ification74  4  7#b7 ,effective date  
,! am5dm5ts made by ?is section %all    
apply to p]iods aft] ,decemb] #ca1      
#bjba1 "u rules simil> to ! rules (     
section #dh7m7 ( ! ,int]nal ,rev5ue     
,code ( #aihf 7z 9 effect on ! day be=e 
! date ( ! enactm5t ( ! ,rev5ue         
,reconciliation ,act ( #aiij74  7d7     
,t]m9ation ( excise tax cr$it = hydrog5 
7#a7 ,9 g5]al ,section #fdbf7;d77#b7 is 
am5d$ by /rik+ subp>agraph 7,d7 & by    
r$esignat+ subp>agraphs 7,e71 7,f71 &   
7,g7 z subp>agraphs 7,d71 7,e71 & 7,f71 
respectively4  7#b7 ,con=m+ am5dm5t     
,section #fdbf7;e77#b7 is am5d$ by /rik+
 7,f7 & ins]t+ 7,e74  7#c7 ,effective   
date ,! am5dm5ts made by ?is subsection 
%all apply to fuel sold or us$ aft]     
,decemb] #ca1 #bjba4