The Biden administration finalized rules meant to boost domestic production of hydrogen fuel through a new tax credit, a move that might also keep struggling nuclear power plants on line for longer.

Key Takeaways Plug Power shares surged for a second straight session on new tax credit rules for clean hydrogen production.Last week, the Treasury Department issued the final rules for the tax credits spelled out in the Inflation Reduction Act of 2022.

Plug Power (PLUG) surged 20% on Monday following President Biden’s rule changes on tax credit rules for clean hydrogen producers. Market Domination hosts Julie Hyman and Josh Lipton dive into the EV charging company's stock movements and the rise in short-interests suggesting a potential short squeeze.

The Biden administration said on Friday portions of nuclear power plants will be able to secure tax credits to produce clean hydrogen if the credits help to prevent reactors from retiring.

Biden's tax credit changes for hydrogen production could benefit companies like CEG, VST, PLUG, FCEL, SMR, LTBR, OKLO, LEU, and NNE.

The U.S. Treasury Department intends to release guidance on how to access tax credits for hydrogen production under the 2022 Inflation Reduction Act later this week, according to two sources familiar with the matter.

The Biden administration loosened some stringent safeguards on a tax credit worth billions of dollars for hydrogen production, after companies argued the rules would stifle domestic manufacturing of the fuel.

With a lucrative tax credit, the Biden administration is hoping to establish a new industry that might help fight climate change.

Hydrogen projects had been waiting for the rules, which determine what ventures are eligible for incentives under the 2022 Inflation Reduction Act.