A bill to extend certain Federal benefits and income tax provisions to energy generated by hydropower resources.

Summary: Hydropower Renewable Energy Development Act of 2011 - Includes hydroelectric energy generated in the United States by a hydroelectric facility within the definition of "renewable energy" for purposes of any federal program or standard.

Amends the Internal Revenue Code to: (1) classify certain hydropower production facilities as renewable resources for purposes of the tax credit for producing electricity from renewable resources, (2) eliminate the one-half reduction in the tax credit rate for hydropower and marine and hydrokinetic renewable energy facilities, and (3) allow accelerated depreciation of equipment that produces electricity from marine and hydrokinetic renewable resources and from hydropower.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hydropower Renewable Energy 
Development Act of 2011''.

SEC. 2. HYDROELECTRIC ENERGY TREATED AS RENEWABLE ENERGY.

    Notwithstanding any other provision of law or regulation, for 
purposes of any Federal program or standard, the term ``renewable 
energy'' shall include hydroelectric energy generated in the United 
States by a hydroelectric facility, including electric power produced 
by efficiency improvements and capacity additions, generation added to 
nonpower dams, conduits, marine and hydrokinetic resources, lake taps, 
pumped storage facilities, and conventional hydropower.

SEC. 3. PRODUCTION TAX CREDIT FOR HYDROPOWER RESOURCES.

    (a) In General.--Subparagraph (A) of section 45(c)(8) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of clause (i),
            (2) by striking the period at the end of clause (ii) and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(iii) in the case of any hydropower 
                        facility described in subparagraph (D), the 
                        hydropower production from the facility for the 
                        taxable year.''.
    (b) Production.--Paragraph (8) of section 45(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(D) Other hydropower production facilities.--For 
                purposes of subparagraph (A), a facility is described 
                in this subparagraph if such facility--
                            ``(i) is a hydroelectric dam or 
                        nonhydroelectric dam--
                                    ``(I) which is placed in service 
                                after the date of the enactment of the 
                                Hydropower Renewable Energy Development 
                                Act of 2011, and
                                    ``(II) which would be described in 
                                subparagraph (A)(i) or (C) but for the 
                                placed in service date,
                            ``(ii) is a hydroelectric facility not 
                        described in clause (i) which has a nameplate 
                        capacity rating of less than 50 megawatts, or
                            ``(iii) is not described in clause (i) or 
                        (ii) and generates energy through the use of a 
                        lake tap or pumped storage.''.
    (c) Qualified Facilities.--Paragraph (9) of section 45(d) of the 
Internal Revenue Code of 1986 is amended to read as follows:
            ``(9) Qualified hydropower facility.--
                    ``(A) Incremental hydropower production.--In the 
                case of a facility described in subsection (c)(8), 
                without regard to subparagraph (C) or (D) thereof, 
                which produces incremental hydropower production, the 
                term `qualified facility' means such facility but only 
                to the extent of such incremental hydropower production 
                attributable to efficiency improvements or additions to 
                capacity described in subsection (c)(8)(B) placed in 
                service after August 8, 2005, and before January 1, 
                2014.
                    ``(B) Production from certain nonhydroelectric 
                dams.--In the case of a facility described in 
                subsection (c)(8)(C) which produces qualified 
                hydropower production, the term `qualified facility' 
                means any such facility placed in service after August 
                8, 2005, and before January 1, 2014.
                    ``(C) Production from other hydropower 
                facilities.--In the case of qualified hydropower 
                production at a facility after the date of the 
                enactment of the Hydropower Renewable Energy 
                Development Act of 2011, the term `qualified facility' 
                includes any such facility which is described in 
                subsection (c)(8)(D).
                    ``(D) Credit period.--In the case of a qualified 
                facility described in subparagraph (A), the 10-year 
                period referred to in subsection (a) shall be treated 
                as beginning on the date the efficiency improvements or 
                additions to capacity are placed in service.''.
    (d) Increase in Credit Rate.--Subparagraph (A) of section 45(b)(4) 
of the Internal Revenue Code of 1986 is amended by striking ``(7), (9), 
or (11)'' and inserting ``or (7)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to electricity produced after the date of the enactment of this 
Act.

SEC. 4. 5-YEAR ACCELERATED DEPRECIATION PERIOD FOR EQUIPMENT WHICH 
              PRODUCES ELECTRICITY FROM MARINE RENEWABLES AND 
              HYDROPOWER.

    (a) In General.--Subclause (III) of section 168(e)(3)(B)(vi) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                                    ``(III) is described in section 
                                45(d)(11) (without regard to any placed 
                                in service date) and converts marine 
                                and hydrokinetic renewable energy (as 
                                defined in section 45(c)(10)) into 
                                useable energy,''.
    (b) Conventional Hydropower.--Clause (vi) of section 168(e)(3)(B) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subclause:
                                    ``(IV) is described in section 
                                45(d)(9) (without regard to any placed 
                                in service date) and has qualified 
                                hydropower production (as defined in 
                                section 45(c)(8)), and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.