45V Time-Matching: ACP Proposal

As the Administration considers updated guidance for the Green Hydrogen 45V tax credit, ACP recommends Treasury create a hybrid hourly & annual time-matching regime that allows projects starting construction before 2028 (“first movers”) to annual match up to 25% of their energy use for the life of the tax credit.

This modest flexibility would allow hydrogen plants to operate more efficiently while keeping emissions below the standard for the highest tier of the tax credit. The higher efficiency achieves a 45-61% production cost savings compared to full hourly matching for first movers. This more competitive cost profile is critical for this nascent industry to become competitive and scalable.

Download ACP’s fact sheet to learn how this proposal would minimize emissions while allowing the nascent industry to scale.