Bill > HR2160

This bill amends the Internal Revenue Code to create a new tax credit that supports upgrades and improvements to existing hydroelectric dams. The bill provides a 30 percent tax credit for "hydropower improvement property" placed in service before January 1, 2032, which includes projects that enhance fish passage, improve water quality, promote sediment transport, upgrade dam safety, improve public access to waterways, remove obsolete river obstructions, or establish remote dams. Qualifying improvements must receive prior written approval from the Federal Energy Regulatory Commission or appropriate local officials. The bill also allows taxpayers to elect to receive a direct payment for this credit and enables the credit to be transferred to other entities. Specifically targeted are improvements that increase clean energy production, enhance grid reliability, and support river ecosystem health. The credit applies to both existing hydroelectric facilities and certain small, isolated dams that exclusively serve communities not connected to major electric grids. The provisions are retroactively effective for property placed in service after December 31, 2022, providing a financial incentive for dam owners and operators to make environmentally and technically beneficial upgrades to their facilities.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2160/all-info