Instructions for form 7210, Clean Hydrogen Production Credit

• Issuer: Treasury Department
• Section: Treasury Department

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2023

Instructions for Form 7210

Clean Hydrogen Production Credit

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 7210 and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form7210.

What’s New

New Form 7210. Beginning in 2023, new Form 7210,

Clean Hydrogen Production Credit, will be used to claim

the section 45V clean hydrogen production credit.

Facility information. As a result of recent tax law

changes, Form 7210 and its instructions were developed

to require separate information and calculation of the

clean hydrogen production credit for each qualified

production facility. See Facility Information, later.

Tax-exempt and governmental entities. For tax years

beginning after 2022, applicable entities (such as certain

tax-exempt and governmental entities) can elect to treat

the clean hydrogen production credit as a payment of

income tax. See Applicable entities, later.

Credit transfers. For tax years beginning after 2022,

eligible taxpayers, partnerships, and S corporations can

elect to transfer all or part of the credit amount otherwise

allowed as a general business credit to an unrelated

third-party buyer in exchange for cash. Eligible taxpayers

don't include applicable entities and electing taxpayers.

See Credit transfers, later.

Electing taxpayers. For tax years beginning after 2022,

taxpayers, partnerships, and S corporations, electing to be

treated as applicable entities, can elect to treat the clean

hydrogen production credit as a payment of income tax.

See Taxpayers electing to be treated as applicable

entities, later.

Pre-filing registration. The IRS has established a

pre-filing registration that must be completed prior to

electing payment or transfer of the clean hydrogen

production credit. See Pre-filing registration requirement

for payments or transfers, later.

General Instructions

Purpose of Form

Use a separate Form 7210 to claim the section 45V credit

for the production of qualified clean hydrogen produced

after 2022 at each qualified clean hydrogen production

facility during the 10-year period beginning on the date the

facility is originally placed in service.

You must attach (a) the required verification

report, and (b) if you are either petitioning for or

using a provisional emissions rate, a copy of the

documentation obtained from the Department of Energy

providing an emissions value.

There is a statutory prohibition in section 45V that

disallows the section 45V credit for any qualified clean

hydrogen produced at a facility that includes carbon

capture equipment for which the section 45Q credit is

allowed to any taxpayer for the tax year or any prior tax

year.

How to Claim the Credit

To qualify for the credit, the clean hydrogen must be

produced in either the United States (as defined in section

638(1)) or a territory of the United States (as defined in

section 638(2)), for its sale or use, in the ordinary course

of a trade or business of the taxpayer. Additionally, the

production and sale or use of such clean hydrogen must

be verified by an unrelated party.

File a separate Form 7210 for each qualified clean

hydrogen production facility for which you claim the

section 45V credit. Complete Part I to report facility

information and the appropriate lines of Parts II, III, and IV

(if applicable) to calculate your clean hydrogen production

credit for such facility. If you claimed a credit for a qualified

clean hydrogen production facility and also received a

Schedule K-1 for a section 45V credit from a partnership

or S corporation, you must file a separate Form 7210 to

report your distributive share of any credit from these other

sources. Enter “Credit from partnerships and S

corporations” on the separate Form 7210, Part I, line 2a,

and enter the total credit amount on Part IV, line 11.

Partnerships and S corporations. You must complete

and attach a separate Form 7210 for each facility or

property to your return even if (1) you cannot claim the

credit, (2) you did not elect to treat the clean hydrogen

production credit as a payment under section 6417, or (3)

you did not elect to transfer the clean hydrogen production

credit (or portion thereof) under section 6418.

Partnerships and S corporations that own and operate

a qualified clean hydrogen production facility must file a

separate Form 7210. All others are generally not required

to complete or file this form if their only source for this

credit is from a partnership or S corporation. Instead, they

can report this credit directly on Form 3800, General

Business Credit.

Amount of Credit

The clean hydrogen production credit for any tax year is

adjusted annually for inflation. The credit is calculated by

multiplying an applicable amount by the kilograms of

qualified clean hydrogen produced. The applicable

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Feb 23, 2024 Cat. No. 93566P