2023 Instructions for Form 7210

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING

This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms and do
not rely on draft forms, instructions, and pubs for filing. We incorporate all
significant changes to forms posted with this coversheet. However, unexpected
issues occasionally arise, or legislation is passed—in this case, we will post a
new draft of the form to alert users that changes were made to the previously
posted draft. Thus, there are never any changes to the last posted draft of a
form and the final revision of the form. Forms and instructions are subject to
OMB approval before they can be officially released, so we post drafts of them
until they are approved. Drafts of instructions and pubs usually have some
additional changes before their final release. Early release drafts are at
IRS.gov/DraftForms and remain there after the final release is posted at
IRS.gov/LatestForms. Also see IRS.gov/Forms.
Most forms and publications have a page on IRS.gov: IRS.gov/Form1040 for
Form 1040; IRS.gov/Pub501 for Pub. 501; IRS.gov/W4 for Form W-4; and
IRS.gov/ScheduleA for Schedule A (Form 1040), for example, and similarly for
other forms, pubs, and schedules for Form 1040. When typing in a link, type it
into the address bar of your browser, not a Search box on IRS.gov.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or pubs at IRS.gov/FormsComments. Include “NTF” followed by the
form or pub number (for example, “NTF1040”, “NTFW4”, “NTF501, etc.) in the
body of the message to route your message properly. We cannot respond to all
comments due to the high volume we receive and may not be able to consider
many suggestions until the subsequent revision of the product, but we will
review each “NTF” message. If you have comments on reducing paperwork and
respondent (filer) burden, with respect to draft or final forms, please respond to
the relevant information collection through the Federal Register process; for
more info, click here.

2023

Instructions for Form 7210

Department of the Treasury
Internal Revenue Service

Clean Hydrogen Production Credit

TREASURY/IRS
AND OMB USE
ONLY DRAFT
January 22, 2024

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. See Credit transfers,
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.

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.

Who Can Take 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 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 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

You must attach (a) the required verification
documentation, and (b) if you petitioned for a
CAUTION provisional emissions rate (PER), a copy of the
PER documentation obtained from the Department of
Energy.

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
amount ranges from $0.12 to $0.60 per kilogram
depending on the level of lifecycle greenhouse gas
emissions associated with the production of the hydrogen.
The credit is multiplied by 5 if the qualified clean hydrogen
production facility meets certain prevailing wage and
apprenticeship requirements.

There is a statutory prohibition in section 45V that
disallows the section 45V credit for any qualified clean

For information regarding calculating the lifecycle
greenhouse gas emissions rate for purposes of

!

Jan 22, 2024

Cat. No. 93566P

determining the amount of the section 45V credit, see
Department of Energy/Clean Hydrogen Production Credit.

Applicable Percentage

The credit in any tax year is calculated by multiplying an
amount equal to $0.60 per kilogram (kg) of qualified clean
hydrogen produced by an applicable percentage based
on the resulting lifecycle greenhouse gas emissions as
follows.

an unrelated third-party buyer in exchange for cash.
Eligible taxpayers don't include applicable entities. For
more information on credit transfers, see Transfer of
Eligible Credits Under Section 6418 in the Instructions for
Form 3800.
Pre-filing registration requirement for payments or
transfers. Before you file your tax return, if you intend to
make an elective payment election or transfer election on
Form 3800 for the credit figured in Part II, you must
complete a pre-filing registration for each facility. To
register, go to IRS.gov/Credits-Deductions/Register-forElective-Payment-or-Transfer-of-Credits. See Pub. 5884,
Inflation Reduction Act (IRA) and CHIPS Act of 2022
(CHIPS) Pre-filing Registration Tool, for more information.
Also see Registering for and Making Elective Payment
and Transfer Elections in the Instructions for Form 3800.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
January 22, 2024

Applicable Amount

Emissions (kg CO2e per kg of
qualified clean hydrogen)

Applicable
Percentage (%)

Applicable
Amount (per kg of
qualified clean
hydrogen)

less than 0.45

100%

$0.60

0.45 to less than 1.5

33.4%

$0.20

1.5 to less than 2.5

25%

$0.15

2.5 to not greater than 4.0

20%

$0.12

The $0.60 amount is adjusted by multiplying the
amount by the inflation adjustment factor for the calendar
year in which the qualified clean hydrogen is produced. If
this adjusted amount is not a multiple of 0.1 cent, the
amount must be rounded to the nearest multiple of 0.1
cent.

In the case of any hydrogen for which an emissions rate
has not been determined, a taxpayer producing such
hydrogen may file a petition with the Secretary of the
Treasury to determine the emissions rate with respect to
such hydrogen.

Applicable entities. For tax years beginning after 2022,
applicable entities (as defined under section 6417(d)(1)
(A)) that generally don't benefit from income tax credits
may elect to treat the clean hydrogen production credit for
a facility originally placed in service after December 31,
2022, as a payment of income tax. Resulting
overpayments may result in refunds.
Applicable entities making the elective payment
election for the clean hydrogen production credit must file
the following:
• Form 7210 and any applicable attachments,
• Form 3800, General Business Credit, and
• Form 990-T, Exempt Organization Business Income Tax
Return, or other applicable income tax return.
For a discussion of what is considered an applicable
entity, see Applicable entity making an elective payment
election on IRA 2022 credits in the Instructions for Form
3800. For more information on elective payment elections
under section 6417, see Elective Payment of Certain
Business Credits Under Section 6417 or Section 48D in
the Instructions for Form 3800.
Your election to treat the credit as a payment generally
applies to 2023 and any subsequent year during the
10-year period described in section 45(a)(2)(A)(ii) for such
facility. You must obtain an IRS-issued registration number
for the facility in 2023 and each of the succeeding years.
Credit transfers. For tax years beginning after 2022,
under section 6418, 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
2

Credit Reduced for Tax-Exempt Bonds

The credit rate reduction for grants, subsidized energy
financing, and other credits was removed. As a result, the
credit is reduced by an amount that is the product of the
credit amount otherwise determined for the tax year and
the lesser of 15% or a fraction determined for the tax year.
The numerator of the fraction is the sum, for the tax year
and all prior tax years, of proceeds of an issue of any
obligations, the interest on which is exempt from tax under
section 103 and which is used to provide financing for the
qualified facility. The denominator of the fraction is the
aggregate amount of additions to the capital account for
the qualified facility for the tax year and all prior tax years
as of the close of the tax year.

Increased Credit Amount for Qualified Clean
Hydrogen Production Facilities

In the case of any qualified facility that satisfies one of the
following requirements, the amount of the credit described
above is multiplied by 5.
• A facility the construction of which begins prior to
January 29, 2023, and which satisfies the prevailing wage
requirements with respect to any alterations or repairs
occurring after January 29, 2023. See Notice 2022-61.
• A facility which satisfies the prevailing wage
requirements with respect to any alterations or repairs
occurring after January 29, 2023.
• A facility which satisfies the prevailing wage and
apprenticeship requirements.

Prevailing Wage Requirements

To meet the prevailing wage requirements with respect to
any qualified facility, a taxpayer must ensure that any
laborers and mechanics employed by the taxpayer or any
contractor or subcontractor in:
• The construction of such facility, and
• The alteration or repair of such facility (with respect to
any tax year, for any portion of such tax year that is within
the 10-year period beginning on the date the qualified
facility is originally placed in service), are paid wages at
rates not less than the prevailing rates for construction,
alteration, or repair of a similar character in the locality in
which such facility is located, as most recently determined
by the Secretary of Labor, in accordance with Subchapter
IV of chapter 31 of title 40, United States Code. Correction
and penalty mechanisms for a taxpayer's failure to satisfy
Instructions for Form 7210 (2023)

the prevailing wage requirements are set forth under
section 45(b)(7)(A).

Apprenticeship Requirements

To meet the apprenticeship requirements, taxpayers must
ensure that, with respect to the construction of any
qualified clean hydrogen production facility, not less than
the applicable percentage of the total labor hours of the
construction, alteration, or repair work (including such
work performed by any contractor or subcontractor) with
respect to such facility is, subject to section 45(b)(8)(B),
performed by qualified apprentices (apprenticeship labor
hour requirements).

• By paying or incurring 5% or more of the total cost of
the facility (Five Percent Safe Harbor).
See Notice 2022-61 for more information.
Modification of Existing Facilities. For purposes of the
credit availability period, in the case of any facility that was
originally placed in service before 2023, and prior to the
modification to produce qualified clean hydrogen did not
produce qualified clean hydrogen, and such facility is
modified after December 31, 2022, to produce qualified
clean hydrogen and the amounts paid or incurred with
respect to such modification are properly chargeable to
the capital account of the taxpayer, then such facility shall
be deemed to have been originally placed in service as of
the date that the property required to complete the
modification to produce qualified clean hydrogen is placed
in service.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
January 22, 2024

The apprenticeship requirements of IRA 2022 include
three components: a labor hours requirement, a ratio
requirement, and a participation requirement.
• Under the labor hours requirement, the taxpayer must
ensure that, depending on when construction began,
12.5% to 15% of the total labor hours performed in the
construction, alteration, or repair of the qualified facility
are performed by qualified apprentices from a registered
apprenticeship program.
• Under the ratio requirement, the taxpayer must ensure
that the applicable ratio of apprentices to journey-workers
established by the registered apprenticeship program are
met for apprentices working on the qualified facility each
day.
• Under the participation requirement, any taxpayer (or
contractor or subcontractor) that employs 4 or more
laborers or mechanics in the construction, alteration, or
repair of the qualified facility must also hire at least one
qualified apprentice.
For further information on the prevailing wage and
apprenticeship requirements, go to IRS.gov/Frequently
asked questions about the prevailing wage and
apprenticeship under the Inflation Reduction Act.

Definitions

The following definitions apply for qualified clean
hydrogen.
Lifecycle greenhouse gas emissions has the same
meaning given such term under section 211(o)(1)(H) of
the Clean Air Act.

Qualified clean hydrogen means hydrogen that is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of not greater than 4
kilograms of CO2e per kilogram of hydrogen that is
produced (1) in the United States (as defined in section
638(1)) or a territory of the United States (as defined in
section 638(2)), (2) in the ordinary course or trade of a
business of the taxpayer, and (3) for sale or use and for
which production and sale or use of such hydrogen is
verified by an unrelated party.
Qualified clean hydrogen production facility means
a facility owned by the taxpayer, which produces qualified
clean hydrogen, and the construction of which begins
before 2033.
Establishing beginning of construction. A taxpayer
may establish that construction of a facility begins:
• By starting physical work of a significant nature
(Physical Work Test), or
Instructions for Form 7210 (2023)

No overlap with section 45Q credits. No section 45V
credit is allowed with respect to any qualified clean
hydrogen produced at a facility that includes carbon
capture equipment for which a credit is allowed to any
taxpayer under section 45Q for the tax year or any prior
tax year.

Specific Instructions

Part I—Facility Information
Line 1

If you are making an elective payment election or making
an election to transfer the clean hydrogen production
credit (or a portion thereof), enter your pre-filing
registration number that you received from the IRS for the
facility. See IRS.gov/Register for elective payment or
transfer of credits.

Line 2a

Enter the address of the facility or property. Enter the
name of the facility or a detailed technical description of
the facility or property.

Line 2b

If the facility doesn’t have an address, enter the
coordinates of the facility or property (longitude and
latitude) on line 2b. If you entered a registration number on
line 1, this information should correspond to the
information provided to obtain a registration number for
such facility.

Line 3

Enter the date construction began. See Establishing
beginning of construction, earlier, and Notice 2022-61 for
more information. For the modification of an existing
facility, enter the date that you began construction to
modify and improve the existing facility to produce
qualified clean hydrogen.

Line 4

Enter the date the qualified clean hydrogen production
facility was originally placed in service.

3

!

i. The amount of penalty payments owed with respect
to any failure to meet the labor hours requirement or the
participation requirement.

Line 5

Applicable wage determinations means the wage
listed for a particular classification of laborer or mechanic
on the applicable wage determination for the type of
construction and the geographic area, as determined by
the Secretary of Labor. See Notice 2022-61 for more
information.

You may only claim the credit after 2022 at a
qualified clean hydrogen production facility during
CAUTION the 10-year period beginning on the date the
facility or modification of an existing facility is originally
placed in service.
Check the box if you are eligible for the increased credit
amount for the qualified clean hydrogen production
facilities and attach the required information. See
Increased Credit Amount for Qualified Clean Hydrogen
Production Facilities, earlier.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
January 22, 2024

Additional information. If you checked the box on line 5
and entered an increased amount on line 10, you must
also attach a statement to Form 7210 that includes the
following information to claim the increased credit amount
for the qualified facilities. You must attach a separate
statement for each qualified facility. The statement must
include the following information.

1. Your name and taxpayer identification number, the
facility description, and the IRS-issued registration
number (if applicable) from Part I.
2. For each qualified facility that began construction
before January 29, 2023, a statement that you met the
Continuity Requirement under the Physical Work Test or
the Five Percent Safe Harbor to establish the beginning of
construction (alteration or repair) and satisfied the
prevailing wage requirements with respect to an alteration
or repair that occurs after January 29, 2023.
3. For each qualified facility or modification to an
existing facility (1) that began construction on or after
January 29, 2023, or (2) an alteration or repair that occurs
at a facility after January 29, 2023, the construction of
which began before January 29, 2023, include the
following:
a. The location and type of the qualified facility.
b. The applicable wage determinations for each
classification of laborer and mechanic who performed
work on the construction, alteration, or repair of the facility.
c. The wages paid (including any correction payments
(as defined in section 45(b)(7)(B)(i)(I)) and hours worked
for each of the laborer or mechanic classifications
engaged in the construction, alteration, or repair of the
facility.
d. The number of laborers and mechanics who
received correction payments as the result of any failure to
pay the applicable prevailing wage rates.
e. The amount of penalty payments owed with respect
to any failures to pay the applicable prevailing wage rates.
f. The wages paid and hours worked by qualified
apprentices for each of the laborer or mechanic
classifications engaged in the construction of the facility.
g. The total labor hours for the construction of the
project by any laborer or mechanic employed by the
taxpayer or any contractor or subcontractor.
h. The amount of hours for which you claim to have
satisfied the apprenticeship requirements under the good
faith effort exception.

4

You must maintain and preserve sufficient
records, including books of account or records for
CAUTION work performed by laborers to construct the facility
or property, to establish that you satisfied the prevailing
wage and apprenticeship requirements to claim the
increased tax benefit.

!

Part II—Clean Hydrogen Production

Enter the applicable amount multiplied by the kilograms of
qualified clean hydrogen produced based on the lifecycle
greenhouse gas emissions rate that results from the
production of qualified clean hydrogen. See Applicable
Percentage, earlier.

Part III—Credit Reduced for
Tax-Exempt Bonds
Line 8

Calculate the reduction of credit for tax-exempt bonds with
respect to a qualified clean hydrogen production facility.
See Credit Reduced for Tax-Exempt Bonds, earlier.

Part IV—Clean Hydrogen Production
Credit
Line 10

If you checked line 5 in Part I, multiply the amount on Part
III, line 9, by 5.0. See the instructions for Part I, line 5, for
Additional information, earlier. Otherwise, enter the
amount from line 9.

Line 11

Enter the total clean hydrogen production credits on a
separate Form 7210 to report your distributive share from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code Y).
• Schedule K-1 (Form 1120-S), Shareholder’s Share of
Income, Deductions, Credits, etc., box 13 (code Y).
Enter “Credit from partnerships, S corporations,
cooperatives, estates or trusts” on Form 7210, Part I,
line 2a. All others not using earlier lines to figure a
separate credit can report the above credits directly on
Form 3800, Part III, line 1g.

Line 12

If you are a partnership or S corporation and you elect
payment for any clean hydrogen production credit under
section 6417(c), report the amount with respect to a
facility on Form 3800, Part III, line 1g, even if you are not
otherwise required to file Form 3800.

Instructions for Form 7210 (2023)

If you are an eligible taxpayer, including a partnership
or S corporation, and elect to transfer any clean hydrogen
production credit (or portion thereof) on Form 7210,
line 12, report the entire amount of the clean hydrogen
production credit with respect to a qualified facility on
Form 3800, Part III, line 1g. You must also attach
additional information to Form 3800, Part III, line 1g. See
the Instructions for Form 3800.

The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for individual and business taxpayers filing this
form is approved under OMB control numbers 1545-0123
and 1545-0047 and is included in the estimates shown in
the instructions for their individual and business income
tax return. The estimated burden for all other taxpayers
who file this form is shown below.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
January 22, 2024

Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law. Generally, tax returns and return information
are confidential, as required by section 6103.

Instructions for Form 7210 (2023)

Recordkeeping . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . .
Preparing and sending the form to the IRS . . .

4 hr., 46 min.
18 min.
23 min.

If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. See the
instructions for the tax return with which this form is filed.

5