Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025
Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025
Plain Language Summary
# Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025 - Summary **What the bill does:** This bill would create a 30% tax credit for businesses and organizations that invest in improving hydroelectric dams and related river systems. The tax credit applies to projects that enhance fish passage around dams, improve water quality, restore natural sediment flow, upgrade dam safety, improve public access to waterways, remove old dams, or build approved new dams. Projects would need approval from federal or state/local authorities before January 1, 2035 to qualify. **Who it affects:** The bill primarily targets dam operators, power companies, environmental organizations, and construction firms involved in hydropower infrastructure.
It could indirectly benefit communities near dams through improved water quality and public access, as well as fish populations affected by dam operations. Taxpayers may also be affected, as the tax credits represent foregone federal revenue. **Current status:** The bill is currently in committee (S 1183, 119th Congress), meaning it has not yet been debated or voted on by the full Senate. It was introduced by Senator Maria Cantwell (D-WA) and has not advanced further in the legislative process at this time.
CRS Official Summary
Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025This 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, 2035.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
Read twice and referred to the Committee on Finance.