Australia Proposes Guidance to Qualify for Hydrogen Tax Credit

The Australian Treasury on Monday asked for feedback on official documents that would allow clean hydrogen producers to prove they qualify for a refundable clean energy tax credit.

The Treasury released a draft of a “legislative instrument” to determine the grid-matching requirements for the hydrogen production tax credit.

The tax incentive was passed in 2025 under the Future Made in Australia Act. It provides a A$2 ($1.43) tax offset per kilogram of hydrogen produced for eligible companies starting in July 2027.

Under the law, clean electricity—generated from hydrogen—is required to be produced from the same grid it’s connected ...