Maintaining and Enhancing Hydroelectricity and River Restoration Act
Maintaining and Enhancing Hydroelectricity and River Restoration Act
Plain Language Summary
# HR 2160: Maintaining and Enhancing Hydroelectricity and River Restoration Act **What the Bill Would Do** This bill would create a tax credit worth 30% of the cost for companies and entities that invest in improving hydroelectric dams and related river infrastructure. The credit applies to projects that enhance fish passage, improve water quality, maintain river habitats, repair or upgrade dams for safety reasons, improve public access to waterways, remove old dams, or build new approved dams. To qualify, projects must receive approval from the Federal Energy Regulatory Commission or state/local officials before January 1, 2032. **Who It Affects and Key Provisions** The bill primarily affects hydroelectric dam operators, energy companies, environmental organizations, and government agencies involved in dam management and river restoration.
By offering a substantial financial incentive (30% tax credit), the bill aims to encourage investment in upgrading aging dam infrastructure while also supporting environmental goals like improved fish passage and habitat restoration. The January 1, 2032 deadline creates an incentive for projects to move forward within a defined timeframe. **Current Status** As of now, HR 2160 remains in committee and has not yet been voted on by the full House. The bill was introduced by Representative Adrian Smith (R-NE) and is still in the early legislative stage.
CRS Official Summary
Maintaining and Enhancing Hydroelectricity and River Restoration ActThis bill establishes a new investment tax credit in the amount of 30% of the basis of any hydropower improvement property.The bill defines hydropower improvement property as property thatadds or improves fish passage at a qualified dam;maintains or improves the quality of the water retained or released by a qualified dam;promotes downstream sediment transport and habitat maintenance;upgrades, repairs, or reconstructs a qualified dam to meet safety and security standards;improves public uses of, and access to, public waterways impacted by a qualified dam;removes an obsolete river obstruction; orplaces into service an approved remote dam.Further, written approval for hydropower improvement property must be obtained from the Federal Energy Regulatory Commission or state or local officials prior to January 1, 2032.The bill also allows an election to claim the investment tax credit for qualified progress expenses for some types of hydropower improvement property in advance of such property being placed into service. Any investment tax credit amount claimed for qualified progress expenses reduces the amount of the investment tax credit that may be claimed once the hydropower improvement property is placed into service. The bill authorizes certain entities, including tax-exempt and governmental entities, to treat the investment tax credit for hydropower improvement property as a payment of tax and receive a refund of any overpayment (also known as elective pay). Finally, the investment tax credit for hydropower improvement property may be transferred (i.e., sold).
Latest Action
Referred to the House Committee on Ways and Means.