Maintaining and Enhancing Hydroelectricity and River Restoration Act

Tax credit for hydropower upgrades

This bill would create a 30% tax credit for the cost of qualifying hydropower improvements placed in service after December 31, 2022. Qualifying work would include fish passage, better water quality, sediment and habitat work, dam‑safety upgrades, public access tied to a FERC license, removing obsolete obstructions, or approved remote dams. Remote dams would need to serve communities off the main ERCOT/Eastern/Western grids, have a FERC license before December 31, 2020, add no air pollution, and be 20 megawatts or less; related interconnection equipment would count. You would need written approval from FERC or state/local officials before January 1, 2032 to claim the credit. Owners could choose a direct cash payment or sell (transfer) the credit under existing sections 6417 and 6418, and the bill would update tax rules to integrate this new credit.