Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-50 - CLIMATE CHANGE  

Division 421 - Hydrogen production tax incentive  

Subdivision 421-A - Tax offset for hydrogen produced in Australia  

SECTION 421-5   Company entitled to refundable tax offset for hydrogen produced in Australia  

421-5(1)    
A company is entitled to a * tax offset under this section (the hydrogen production tax offset ) for an income year in respect of a kilogram of hydrogen produced in Australia during the income year if:

(a) the income year:

(i) starts on or after 1 July 2027; and

(ii) ends before 1 July 2040; and

(b) there is a * registered PGO certificate that relates to the kilogram of hydrogen and which states:

(i) that the kilogram of hydrogen was produced at a particular facility that is specified in a * production profile, in accordance with a particular * production pathway that is specified in that production profile; and

(ii) that the kilogram of hydrogen has a * production emissions intensity that is less than or equal to 0.6 kilograms of carbon dioxide per 1 kilogram of hydrogen (see section 421-20 ); and

(iii) if the facility is connected to an electricity grid - that the electricity (if any) that the facility obtained from the grid and used to produce the kilogram of hydrogen satisfies the * grid matching requirements (see section 421-25 ); and

(c) at the time when the kilogram of hydrogen was produced, the production profile mentioned in subparagraph (b)(i) of this subsection was certified in relation to the facility and the production pathway under Subdivision 421-B ; and

(d) the kilogram of hydrogen was produced during the * offset period for the facility and the production pathway (see section 421-30 ); and

(e) the * initial reconciliation period for the PGO certificate has ended (see section 421-35 ); and

(f) no * correction notice for the PGO certificate is in force (see section 421-40 ); and

(g) the company satisfies the requirements in subsection (2) of this section.

Note 1:

For paragraph (c) , when a production profile is certified, or a certification of a production profile is revoked, under Subdivision 421-B , the certification or revocation may have retrospective effect.

Note 2:

The hydrogen production tax offset is a refundable tax offset (see section 67-23 ).

421-5(2)    
The company satisfies the requirements in this subsection if:

(a) the company is a * constitutional corporation; and

(b) the company was the person who created the * registered PGO certificate under the Future Made in Australia (Guarantee of Origin) Act 2024 ; and

(c) the company created the PGO certificate in the course of carrying on an enterprise in the indirect tax zone; and

(d) at each time when the company carries on that enterprise in the indirect tax zone during the income year, either:

(i) the company is an Australian resident and has an * ABN; or

(ii) the company is a foreign resident and has a * permanent establishment in Australia and an ABN; and

(e) the company is not an * exempt entity; and

(f) if * HPTO community benefit rules under paragraph 421-45(1)(a) of this Act apply to the company for the income year - the company meets the conditions specified in those rules.

421-5(3)    
In subsection (2) , carried on in the indirect tax zone and indirect tax zone have the same meaning as in the * GST Act.