The conversation among the professionals is shifting from basic tax breaks to Strategic Capital Recovery. Specifically, there is a push to reintroduce Accelerated Depreciation (AD) for AI Hardware and Green Hydrogen.
In the world of AI, tech moves at lightning speed. A high-end GPU (like an NVIDIA H100) that you buy today might be “too slow” to compete in just 24 months.
Current tax laws assume computers last much longer. This leaves companies with “assets”, machines that are still on the balance sheet but useless in the office.
The industry wants to hike the tax write-off rate to 80%. This enables companies to recover their cash quickly, allowing them to continue purchasing the latest and most advanced technology.
Building a Green Hydrogen plant is expensive, and 40% of that cost is the electrolyzer (the machine that makes the fuel). Currently, these are treated like standard factory gear, with a slow tax recovery.
By allowing a faster 80% write-off, the government can effectively cut the cost of Green Hydrogen by 10-12%.
The government likely won’t give this break to everyone forever. We expect a “Now-or-Never” window, a 3-year period where you get the high tax break only if you invest immediately. This is designed to trigger a massive wave of spending before 2029.
