119-hr2160

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2160 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2160

 To amend the Internal Revenue Code of 1986 to support upgrades at 
 existing hydroelectric dams in order to increase clean energy 
production, improve the resiliency and reliability of the United States 
electric grid, enhance the health of the Nation's rivers and associated 
 wildlife habitats, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 14, 2025

 Mr. Smith of Nebraska (for himself, Ms. DelBene, Mr. Fitzpatrick, Ms. 
Schrier, Ms. Tenney, and Ms. Goodlander) introduced the following bill; 
 which was referred to the Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to support upgrades at 
 existing hydroelectric dams in order to increase clean energy 
production, improve the resiliency and reliability of the United States 
electric grid, enhance the health of the Nation's rivers and associated 
 wildlife habitats, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Maintaining and Enhancing 
Hydroelectricity and River Restoration Act''.

SEC. 2. CREDIT FOR MAINTAINING AND ENHANCING HYDROELECTRIC FACILITIES.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 

section 48E the following new section:

``

SEC. 48F. CREDIT FOR MAINTAINING AND ENHANCING HYDROELECTRIC 
 FACILITIES.

 ``

    (a) In General.--For purposes of 

section 46, the credit for 
maintaining and enhancing hydroelectric facilities for any taxable year 
is an amount equal to 30 percent of the basis of any hydropower 
improvement property placed in service during such taxable year.
 ``

    (b) Certain Progress Expenditure Rules Made Applicable.--Rules 
similar to the rules of subsections
            (c) (4) and
            (d) of 

section 46 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of subsection

    (a) .
 ``
            (c) Hydropower Improvement Property.--In this section, the term 
`hydropower improvement property' means property--
 ``

    (1) which--
 ``
        (A) adds or improves fish passage at a qualified 
 dam,
 ``
        (B) maintains or improves the quality of the 
 water retained or released by a qualified dam,
 ``
            (C) promotes downstream sediment transport 
 processes and habitat maintenance with respect to a 
 qualified dam,
 ``
            (D) upgrades, repairs, or reconstructs a 
 qualified dam to meet Federal dam safety and security 
 standards,
 ``
        (E) improves the public uses of, and access to, 
 public waterways impacted by a qualified dam in a 
 manner consistent with a license issued by the Federal 
 Energy Regulatory Commission or a settlement agreement 
 related to such a license,
 ``
        (F) removes an obsolete river obstruction, or
 ``
        (G) places into service an approved remote dam, 
 and
 ``

    (2) for which, prior to January 1, 2032, the taxpayer 
 receives written approval with respect to any property 
 described in paragraph

    (1) from the Federal Energy Regulatory 
 Commission or State or local officials, as appropriate.
 ``
            (d) Other 

=== Definitions. ===
-In this section--
 ``

    (1) Approved remote dam.--The term `approved remote dam' 
 means--
 ``
        (A) a hydroelectric dam which--
 ``
            (i) exclusively services communities not 
 interconnected to the Electric Reliability 
 Council of Texas, the Eastern Interconnection, 
 or the Western Interconnection,
 ``
            (ii) was licensed by the Federal Energy 
 Regulatory Commission before December 31, 2020,
 ``
            (iii) does not contribute to atmosphere 
 pollution, and
 ``
            (iv) has a maximum net output of not 
 greater than 20 megawatts, and
 ``
        (B) any interconnection property associated with 
 a dam described in subparagraph
        (A) .
 ``

    (2) Fish passage.--The term `fish passage' means, with 
 respect to any qualified dam, any new or upgraded turbine, 
 fishway, or other fish passage technology which improves fish 
 migration and survival rates.
 ``

    (3) Interconnection property.--The term `interconnection 
 property' means, with respect to any dam described in paragraph

    (1)
        (A) , any tangible property--
 ``
        (A) to enable the delivery of electricity from 
 such dam to any customer, and
 ``
        (B) which satisfies the requirements under 
 clauses
            (ii) and
            (iii) of 

section 48

    (a)

    (8)
        (B) .
 ``

    (4) Obsolete river obstruction.--The term `obsolete river 
 obstruction' means a qualified nonpowered dam (as defined in 
 

section 34

    (e)

    (3) of the Federal Power Act (16 U.S.C. 
 823e

    (e)

    (3) )) no longer serving its intended purpose.
 ``

    (5) Qualified dam.--The term `qualified dam' means a 
 hydroelectric dam that is licensed by the Federal Energy 
 Regulatory Commission or legally operating without such a 
 license before the date of enactment of this section.''.

    (b) Elective Payment and Transfer of Credit.--

    (1) Elective payment.--

Section 6417 of the Internal Revenue 
 Code of 1986 is amended--
        (A) in subsection

    (b) , by adding at the end the 
 following:
 ``

    (13) The credit for maintaining and enhancing 
 hydroelectric facilities under 

section 48F.'', and
        (B) in subsection
            (d) (1) --
            (i) in subparagraph
        (E) , by striking ``
            (C) , 
 or
            (D) '' each place it appears and inserting 
 ``
            (C) ,
            (D) , or
        (E) '',
            (ii) by redesignating subparagraph
        (E) (as 
 amended by clause
            (i) ) as subparagraph
        (F) , and
            (iii) by inserting after subparagraph
            (D) the following:
 ``
        (E) Election with respect to credit for 
 maintaining and enhancing hydroelectric facilities.--If 
 a taxpayer other than an entity described in 
 subparagraph
        (A) makes an election under this 
 subparagraph with respect to any taxable year in which 
 such taxpayer has, after December 31, 2022, placed in 
 service hydropower improvement property (as defined in 
 

section 48F
            (c) ), such taxpayer shall be treated as an 
 applicable entity for purposes of this section for such 
 taxable year, but only with respect to the credit 
 described in subsection

    (b)

    (13) .''.

    (2) Transfer.--

Section 6418

    (f)

    (1)
        (A) of the Internal 
 Revenue Code of 1986 is amended by adding at the end the 
 following:
 ``
            (xii) The credit for maintaining and 
 enhancing hydroelectric facilities under 
 

section 48F.''.
            (c) Conforming Amendments.--

    (1) Section 46 of the Internal Revenue Code of 1986 is 
 amended--
        (A) in paragraph

    (6) , by striking ``and'' at the 
 end,
        (B) in paragraph

    (7) , by striking the period at the 
 end and inserting ``, and'', and
            (C) by adding at the end the following:
 ``

    (8) the credit for maintaining and enhancing 
 hydroelectric facilities.''.

    (2) Section 49

    (a)

    (1)
            (C) of such Code is amended--
        (A) in clause
            (vii) , by striking ``and'' at the 
 end,
        (B) in clause
            (viii) , by striking the period at the 
 end and inserting ``, and'', and
            (C) by adding at the end the following:
 ``
            (ix) the basis of any hydropower 
 improvement property under 

section 48F.''.

    (3) Section 50 of such Code is amended--
        (A) in subsection

    (a)

    (2)
        (E) , as amended by 

section 13702

    (b) of Public Law 117-169, by striking ``or 
 48E

    (e) '' and inserting ``48E

    (e) , or 48F

    (b) '', and
        (B) in subsection
            (d) (2) --
            (i) in the matter preceding subparagraph
        (A) , by inserting ``or any hydropower 
 improvement property (as defined in 

section 48F
            (c) )'' after ``any energy storage technology 
 (as defined in 

section 48
            (c) (6) )'', and
            (ii) in subparagraph
        (B) , by striking 
 ``energy storage technology'' each place it 
 appears and inserting ``energy storage 
 technology or hydropower improvement 
 property''.

    (4) The table of sections for subpart E of part IV of 
 subchapter A of chapter 1 of such Code is amended by inserting 
 after the item relating to 

section 48E the following new item:

``

Sec. 48F. Credit for maintaining and enhancing hydroelectric 
 facilities.''.
            (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2022.
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