PER
(c) Provisional emissions rate (PER)(1) In general. For purposes of section 45V(c)(2)(C) and paragraph (a) of this section, the term provisional emissions rate or PER means the lifecycle GHG emissions rate of the hydrogen produced through a process at a hydrogen production facility as determined by the Secretary under this paragraph (c). (2) Rate not determined(i) In general. For purposes of section 45V(c)(2)(C), a taxpayer may not file a petition for a PER unless a lifecycle GHG emissions rate has not been determined under the 45VH2-GREET Model with respect to hydrogen produced through a process by the taxpayer at a hydrogen production facility. A lifecycle GHG emissions rate has not been determined under the 45VH2-GREET Model with respect to hydrogen produced through a process by the taxpayer at a hydrogen production facility if either the feedstock used in such process or the facility's hydrogen production technology, together referred to as the facility's hydrogen production pathway, is not included in the 45VH2-GREET Model. If a taxpayer's request for an emissions value pursuant to paragraph (c)(5) of this section with respect to the hydrogen produced through a process by the taxpayer at a hydrogen production facility is pending at the time such facility's hydrogen production pathway becomes included in an updated version of 45VH2-GREET, the taxpayer's request for an emissions value will be automatically denied. In such case, the taxpayer must determine the lifecycle GHG emissions rate with respect to such hydrogen under paragraph (c)(2)(ii) of this section. (ii) Subsequent inclusion in 45VH2-GREET. Notwithstanding the definition of the 45VH2-GREET Model provided at 1.45V-1(a)(9)(ii), for the taxable year in which the hydrogen production facility's hydrogen production pathway is first included in an updated version of 45VH2-GREET, the updated version of 45VH2-GREET will be considered the 45VH2-GREET Model with respect to the hydrogen produced through a process by the taxpayer at the hydrogen production facility during such taxable year, and for purposes of section 45V(c)(2)(C), a lifecycle GHG emissions rate for such hydrogen will be considered to have been determined. (3) Process for filing a PER petition. To file a PER petition with the Secretary, a taxpayer must submit a PER petition attached to the taxpayer's Federal income tax return (or information return) for the first taxable year of hydrogen production ending within the 10-year period described in section 45V(a)(1) for which the taxpayer claims the section 45V credit for hydrogen to which the PER petition relates and for which a lifecycle GHG emissions rate has not been determined, as defined under paragraph (c)(2)(i) of this section. A PER petition must contain the letter received from the DOE stating the emissions value the DOE determined with respect to the facility's hydrogen production pathway, and the control number the DOE assigned to the emissions value request application. If the taxpayer obtained more than one emissions value from the DOE, the PER petition must contain the emissions value setting forth the lifecycle GHG emissions rate of the hydrogen for which the section 45V credit is claimed on the Form 7210, Clean Hydrogen Production Credit, or any successor form(s), to which the PER petition is attached. (4) PER determination. Upon the taxpayer's filing of its Federal income tax return (or information return) containing a PER petition in a manner consistent with paragraph (c)(3) of this section, the emissions value of the hydrogen determined by the DOE will be deemed accepted. The taxpayer may rely upon an emissions value provided by the DOE for purposes of calculating and claiming a section 45V credit, provided that any information, representations, or other data provided to the DOE in support of the request for an emissions value are accurate. The IRS's deemed acceptance of such emissions value is the Secretary's determination of the PER. However, the production, including the data the taxpayer submitted in the PER petition and the data provided to the DOE in support of the taxpayer's request for an emissions value, and sale or use of such hydrogen must be verified by an unrelated party under section 45V(c)(2)(B)(ii) and 1.45V-5. Such verification and any information, representations, or other data provided to the DOE in support of the request for an emissions value are subject to later examination by the IRS. (5) Department of Energy (DOE) emissions value request process (EVRP). An applicant that submits a request for an emissions value must follow the procedures specified by the DOE to request and obtain such emissions value. Emissions values will be evaluated using the same well-to-gate system boundary that is employed in 45VH2-GREET. Additionally, background data parameters in 45VH2-GREET will also be treated as background data (fixed values that an applicant cannot change) in the emissions value request process. Treatment of qualifying EACs and other sources of emissions addressed in the section 45V regulations will be consistently applied in the EVRP. An applicant may request an emissions value from the DOE only after a Class 3 front-end engineering and design (FEED) study or similar indication of project maturity, as determined by the DOE, such as project specification and cost estimation sufficient to inform a final investment decision, has been completed for the hydrogen production facility. The DOE may decline to review applications that are not responsive, including those applications that use a hydrogen production technology and feedstock already in 45VH2-GREET or applications that are incomplete. Applicants seeking a new emissions value for a given hydrogen production facility after the DOE has completed its analysis may reapply only if they wish to resubmit their application with new or revised technical information or clarifications related to the information previously submitted. Guidance and procedures for applicants to request and obtain an emissions value from the DOE will be published by the DOE. (6) Effect of PER(i) In general. A taxpayer may use a PER determined by the Secretary to calculate the amount of the section 45V credit under section 45V(a) and 1.45V-1(b) with respect to qualified clean hydrogen produced at a qualified clean hydrogen production facility, provided (A) The lifecycle GHG emissions rate of such hydrogen has not been determined (for purposes of section 45V(c)(2)(C)) under the 45VH2-GREET Model; (B) There are no material changes to the information about the taxpayer's hydrogen production process from the information provided to the DOE to obtain an emissions value pursuant to paragraph (c)(5) of this section; and (C) All other requirements of section 45V are met. (ii) Material change. For purposes of paragraph (c)(6)(i)(B) of this section, a material change means any change that would cause a qualified verifier (as defined in 1.45V-5(h)) to be unable to complete a production attestation under section 45V(c)(2)(B)(ii) of the Code and 1.45V-5(c). (iii) Subsequent inclusion safe harbor(A) In general. The taxpayer may, in its discretion, make an irrevocable election, effective for the remaining taxable years within the period described in section 45V(a)(1), to treat the first version of 45VH2-GREET that includes the taxpayer's qualified clean hydrogen production facility's hydrogen production pathway as the 45VH2-GREET Model. (B) Time and manner of making election. The taxpayer makes the election described in paragraph (c)(6)(iii)(A) of this section with respect to a qualified clean hydrogen production facility on Form 7210 or any successor form(s). The taxpayer must make the election by no later than the due date for filing its Federal income tax return or information return (including extensions) for a taxable period ending no later than December 31, 2025, or the due date for filing its Federal income tax return or information return (including extensions) for the taxable period in which the taxpayer's qualified clean hydrogen production facility's hydrogen production pathway is first included in 45VH2-GREET, whichever due date is later. (iv) Special rule for facilities that receive an emissions value prior to the beginning of construction. Notwithstanding the requirement of paragraph (c)(6)(i)(A) of this section, a taxpayer who received an emissions value from the DOE with respect to a qualified clean hydrogen production facility (pursuant to paragraph (c)(5) of this section) before the date when construction of the facility began, may, in its discretion, use the PER determined by the Secretary and the associated emissions value to calculate the amount of section 45V credit with respect to qualified clean hydrogen produced at the qualified clean hydrogen production facility for the entirety of the period described in section 45V(a)(1), provided that the taxpayer continues to satisfy the requirements of paragraphs (c)(6)(i)(B) and (C) of this section. (v) Not an examination of books and records. The Secretary's PER determination is not an examination or inspection of books of account for purposes of section 7605(b) of the Code and does not preclude or impede the IRS (under section 7605(b) or any administrative provisions adopted by the IRS) from later examining a return or inspecting books or records with respect to any taxable year for which the section 45V credit is claimed. For example, the verification report submitted under section 45V(c)(2)(B)(ii) and 1.45V-5 and any information, representations, or other data provided to the DOE in support of the request for an emissions value are still subject to examination. Further, a PER determination does not signify that the IRS has determined that the requirements of section 45V have been satisfied for any taxable year.