I 
119TH CONGRESS 
1ST SESSION H. R. 2160 
To amend the Internal Revenue Code of 1986 to support upgrades at existing 
hydroelectric dams in order to increase clean energy production, improve 
the resiliency and reliability of the United States electric grid, enhance 
the health of the Nation’s rivers and associated wildlife habitats, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2025 
Mr. SMITH of Nebraska (for himself, Ms. DELBENE, Mr. FITZPATRICK, Ms. 
SCHRIER, Ms. TENNEY, and Ms. GOODLANDER) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to support 
upgrades at existing hydroelectric dams in order to in-
crease clean energy production, improve the resiliency 
and reliability of the United States electric grid, enhance 
the health of the Nation’s rivers and associated wildlife 
habitats, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Maintaining and En-
hancing Hydroelectricity and River Restoration Act’’. 
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SEC. 2. CREDIT FOR MAINTAINING AND ENHANCING HY-
DROELECTRIC FACILITIES. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 48E the fol-
lowing new section: 
‘‘SEC. 48F. CREDIT FOR MAINTAINING AND ENHANCING HY-
DROELECTRIC FACILITIES. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
credit for maintaining and enhancing hydroelectric facili-
ties for any taxable year is an amount equal to 30 percent 
of the basis of any hydropower improvement property 
placed in service during such taxable year. 
‘‘(b) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to the rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990) shall apply for purposes of sub-
section (a). 
‘‘(c) HYDROPOWER IMPROVEMENT PROPERTY.—In 
this section, the term ‘hydropower improvement property’ 
means property— 
‘‘(1) which— 
‘‘(A) adds or improves fish passage at a 
qualified dam, 
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‘‘(B) maintains or improves the quality of 
the water retained or released by a qualified 
dam, 
‘‘(C) promotes downstream sediment trans-
port processes and habitat maintenance with re-
spect to a qualified dam, 
‘‘(D) upgrades, repairs, or reconstructs a 
qualified dam to meet Federal dam safety and 
security standards, 
‘‘(E) improves the public uses of, and ac-
cess to, public waterways impacted by a quali-
fied dam in a manner consistent with a license 
issued by the Federal Energy Regulatory Com-
mission or a settlement agreement related to 
such a license, 
‘‘(F) removes an obsolete river obstruction, 
or 
‘‘(G) places into service an approved re-
mote dam, and 
‘‘(2) for which, prior to January 1, 2032, the 
taxpayer receives written approval with respect to 
any property described in paragraph (1) from the 
Federal Energy Regulatory Commission or State or 
local officials, as appropriate. 
‘‘(d) OTHER DEFINITIONS.—In this section— 
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‘‘(1) APPROVED REMOTE DAM.—The term ‘ap-
proved remote dam’ means— 
‘‘(A) a hydroelectric dam which— 
‘‘(i) exclusively services communities 
not interconnected to the Electric Reli-
ability Council of Texas, the Eastern Inter-
connection, or the Western Interconnec-
tion, 
‘‘(ii) was licensed by the Federal En-
ergy Regulatory Commission before De-
cember 31, 2020, 
‘‘(iii) does not contribute to atmos-
phere pollution, and 
‘‘(iv) has a maximum net output of 
not greater than 20 megawatts, and 
‘‘(B) any interconnection property associ-
ated with a dam described in subparagraph (A). 
‘‘(2) FISH PASSAGE.—The term ‘fish passage’ 
means, with respect to any qualified dam, any new 
or upgraded turbine, fishway, or other fish passage 
technology which improves fish migration and sur-
vival rates. 
‘‘(3) INTERCONNECTION PROPERTY.—The term 
‘interconnection property’ means, with respect to 
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any dam described in paragraph (1)(A), any tangible 
property— 
‘‘(A) to enable the delivery of electricity 
from such dam to any customer, and 
‘‘(B) which satisfies the requirements 
under 
clauses 
(ii) 
and 
(iii) 
of 
section 
48(a)(8)(B). 
‘‘(4) OBSOLETE
RIVER
OBSTRUCTION.—The 
term ‘obsolete river obstruction’ means a qualified 
nonpowered dam (as defined in section 34(e)(3) of 
the Federal Power Act (16 U.S.C. 823e(e)(3))) no 
longer serving its intended purpose. 
‘‘(5) QUALIFIED
DAM.—The term ‘qualified 
dam’ means a hydroelectric dam that is licensed by 
the Federal Energy Regulatory Commission or le-
gally operating without such a license before the 
date of enactment of this section.’’. 
(b) ELECTIVE PAYMENT AND TRANSFER OF CRED-
IT.— 
(1) ELECTIVE PAYMENT.—Section 6417 of the 
Internal Revenue Code of 1986 is amended— 
(A) in subsection (b), by adding at the end 
the following: 
‘‘(13) The credit for maintaining and enhancing 
hydroelectric facilities under section 48F.’’, and 
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(B) in subsection (d)(1)— 
(i) in subparagraph (E), by striking 
‘‘(C), or (D)’’ each place it appears and in-
serting ‘‘(C), (D), or (E)’’, 
(ii) by redesignating subparagraph 
(E) (as amended by clause (i)) as subpara-
graph (F), and 
(iii) by inserting after subparagraph 
(D) the following: 
‘‘(E) ELECTION WITH RESPECT TO CREDIT 
FOR
MAINTAINING
AND
ENHANCING
HYDRO-
ELECTRIC
FACILITIES.—If a taxpayer other 
than an entity described in subparagraph (A) 
makes an election under this subparagraph with 
respect to any taxable year in which such tax-
payer has, after December 31, 2022, placed in 
service hydropower improvement property (as 
defined in section 48F(c)), such taxpayer shall 
be treated as an applicable entity for purposes 
of this section for such taxable year, but only 
with respect to the credit described in sub-
section (b)(13).’’. 
(2) TRANSFER.—Section 6418(f)(1)(A) of the 
Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
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‘‘(xii) The credit for maintaining and 
enhancing hydroelectric facilities under 
section 48F.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 46 of the Internal Revenue Code of 
1986 is amended— 
(A) in paragraph (6), by striking ‘‘and’’ at 
the end, 
(B) in paragraph (7), by striking the pe-
riod at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(8) the credit for maintaining and enhancing 
hydroelectric facilities.’’. 
(2) Section 49(a)(1)(C) of such Code is amend-
ed— 
(A) in clause (vii), by striking ‘‘and’’ at the 
end, 
(B) in clause (viii), by striking the period 
at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(ix) the basis of any hydropower im-
provement property under section 48F.’’. 
(3) Section 50 of such Code is amended— 
(A) in subsection (a)(2)(E), as amended by 
section 13702(b) of Public Law 117–169, by 
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striking ‘‘or 48E(e)’’ and inserting ‘‘48E(e), or 
48F(b)’’, and 
(B) in subsection (d)(2)— 
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘or any hydro-
power improvement property (as defined in 
section 48F(c))’’ after ‘‘any energy storage 
technology 
(as 
defined 
in 
section 
48(c)(6))’’, and 
(ii) in subparagraph (B), by striking 
‘‘energy storage technology’’ each place it 
appears and inserting ‘‘energy storage 
technology or hydropower improvement 
property’’. 
(4) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48E the following new item: 
‘‘Sec. 48F. Credit for maintaining and enhancing hydroelectric facilities.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2022. 
Æ 
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