Maintaining and Enhancing Hydroelectricity and River Restoration Act
- Bill Number
- H.R. 2160
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-03-14: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-29T08:07:00Z
AI-Generated Summary
Purpose
The Maintaining and Enhancing Hydroelectricity and River Restoration Act (H.R. 2160) aims to encourage upgrades at existing hydroelectric dams through tax incentives. Its goals include boosting clean energy production from hydropower, strengthening the reliability and resilience of the U.S. electric grid, and improving the health of rivers and wildlife habitats by addressing environmental impacts of dams.
Key Provisions
- New Tax Credit (Section 48F): Introduces a 30% investment tax credit for "hydropower improvement property" placed in service after December 31, 2022. This credit covers the cost basis of eligible improvements.
- Definition of Hydropower Improvement Property: Eligible property includes upgrades or additions to "qualified dams" (existing hydroelectric dams licensed by the Federal Energy Regulatory Commission (FERC) or legally operating without a license) that:
- Add or improve fish passage (e.g., turbines, fishways, or technology to help fish migrate and survive).
- Maintain or enhance water quality released or held by the dam.
- Promote natural sediment flow and habitat maintenance downstream.
- Upgrade, repair, or reconstruct the dam to meet federal safety and security standards.
- Improve public access and uses of affected waterways, consistent with FERC licenses or related agreements.
- Remove obsolete river obstructions (non-powered dams no longer serving their purpose).
- Place into service an "approved remote dam" (small-scale dams, up to 20 megawatts, serving isolated communities not connected to major U.S. power grids, licensed by FERC before 2020, and non-polluting, including related interconnection equipment).
- Approval Requirement: Taxpayers must obtain written approval for these improvements from FERC or appropriate state/local officials before January 1, 2032.
- Elective Payment and Transferability: The credit can be directly paid to eligible taxpayers (treated as applicable entities for this purpose) or transferred to other parties, similar to other clean energy tax credits under sections 6417 and 6418 of the Internal Revenue Code.
- Application Rules: Incorporates progress expenditure rules from existing tax code sections for ongoing projects and excludes the credit basis from certain amortization or recapture rules.
Significant Changes to Existing Law
- Adds a new section (48F) to the Internal Revenue Code's investment tax credit provisions (subpart E of part IV), specifically tailored to hydropower maintenance and environmental enhancements, building on credits for other clean energy technologies (e.g., sections 48C and 48E).
- Integrates the credit into broader tax frameworks by amending sections 46, 49, and 50 to include it in general business credits, basis adjustments, and rules for energy property.
- Expands elective payment (direct pay) and transfer options to non-applicable entities (e.g., individual taxpayers) for this credit, allowing more flexibility than traditional tax credits.
- Applies retroactively to property placed in service after December 31, 2022, potentially enabling immediate claims for recent investments.
Potential Impacts
- On Government Agencies: FERC and state/local officials will see increased workload for approving projects, potentially leading to more oversight of dam operations. The U.S. Treasury may face reduced tax revenue due to the credits but could benefit from indirect gains in energy security and environmental compliance.
- On Citizens: Could lower energy costs through more reliable clean hydropower, improve recreational access to rivers, and enhance fish populations and water quality, benefiting communities near dams. Rural or isolated areas with remote dams may gain better electricity access without grid expansion.
- On International Relations: Minimal direct impact, though increased U.S. clean energy production could support global climate goals by reducing reliance on fossil fuels.
- Broader Effects: Encourages private investment in aging infrastructure (many U.S. dams are over 50 years old), potentially averting safety risks and environmental degradation while adding up to gigawatts of clean energy capacity.
Main Stakeholders Affected
- Dam Owners and Operators: Primary beneficiaries, including utilities, private companies, and public entities, who can claim credits for upgrades.
- Environmental and Wildlife Groups: Gain from improved fish migration, habitat restoration, and river health measures.
- Energy Consumers and Utilities: Benefit from a more resilient grid and increased clean energy supply.
- Federal and State Agencies: FERC for licensing/approvals; environmental agencies (e.g., EPA, Fish and Wildlife Service) for oversight of ecological impacts; state/local governments for water and safety regulations.
- Taxpayers and Businesses: Eligible for credits or transfers, potentially spurring job creation in construction, engineering, and maintenance sectors.
- Local Communities: Particularly those near rivers or remote areas, affected by improved access, safety, and ecosystem services.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens integration of tax policy with energy and environmental laws (e.g., Federal Power Act), requiring FERC approvals to ensure compliance and prevent abuse. No basis adjustments or recapture rules could incentivize long-term maintenance but might raise concerns about ongoing tax expenditures.
- Constitutional: Aligns with Congress's taxing and spending powers under Article I; promotes general welfare through clean energy and habitat protection without infringing on states' rights, as approvals involve state/local input.
- Political: Bipartisan sponsorship (from both Republican and Democratic members) highlights cross-party support for infrastructure and clean energy. Could influence future energy bills by modeling tax incentives for renewables, though debates may arise over fiscal costs (estimated credits could total billions) versus environmental benefits. No major controversies noted in the bill text, focusing on targeted, approvable improvements.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (18)
Rep. DelBene, Suzan K. [D-WA-1], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Schrier, Kim [D-WA-8], Rep. Tenney, Claudia [R-NY-24], Rep. Goodlander, Maggie [D-NH-2], Rep. Lawler, Michael [R-NY-17], Rep. Miller, Carol D. [R-WV-1], Rep. Langworthy, Nicholas A. [R-NY-23], Rep. Schmidt, Derek [R-KS-2], Rep. Flood, Mike [R-NE-1], Rep. Mann, Tracey [R-KS-1], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Pappas, Chris [D-NH-1], Rep. Bacon, Don [R-NE-2], Rep. Perez, Marie Gluesenkamp [D-WA-3], Rep. Moore, Barry [R-AL-1], Rep. Trahan, Lori [D-MA-3], Rep. Tonko, Paul [D-NY-20]
Recent Actions
- 2025-03-14: Referred to the House Committee on Ways and Means.
- 2025-03-14: Introduced in House
- 2025-03-14: Introduced in House
Bill Versions
- Maintaining and Enhancing Hydroelectricity and River Restoration Act — issued 2025-03-14 — PDF (8 pages)