Maintaining and Enhancing Hydroelectricity Act

Summary#

This bill would add a new federal tax credit for upgrades and restoration work at existing hydroelectric dams. The credit equals 30% of the cost basis of qualifying "hydropower improvement property" placed in service. Qualifying work includes adding or improving fish passage, improving water quality, promoting downstream sediment transport and habitat, upgrading dams to meet federal dam safety and security standards, improving public access consistent with a Federal Energy Regulatory Commission (FERC) license or settlement, removing obsolete nonpowered dams, and placing approved remote dams into service. Projects must receive written approval from FERC or appropriate State or local officials before January 1, 2032. The bill also adds rules to allow an elective payment or transfer of the credit and makes conforming changes to related tax code sections. The changes apply to property placed in service after December 31, 2022.

What it means for you#

  • If you are a taxpayer who places qualifying hydropower improvement property into service, you could claim a tax credit equal to 30% of the property's basis.
  • To qualify, the project must fit one of the listed categories (fish passage, water quality, dam safety upgrades, etc.) and have written approval from FERC or state/local officials before 2022-01-01 2032.
  • The bill creates rules allowing some taxpayers to elect to receive payment for the credit or transfer the credit, similar to other energy credits.
  • The bill changes parts of the Internal Revenue Code to add the new credit and update related tax provisions.

Expenses#

No publicly available information on estimated federal costs or savings is included in the bill text or provided metadata.

Proponents' View#

The bill's text and title state it is intended to support upgrades at existing hydroelectric dams to increase clean energy production, improve the resiliency and reliability of the electric grid, and enhance the health of rivers and associated wildlife habitats.

Opponents' View#

No publicly available information on opposition, criticisms, or alternative views is included in the bill text or provided metadata.