Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2160 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2160
5	5	To amend the Internal Revenue Code of 1986 to support upgrades at existing
6	6	hydroelectric dams in order to increase clean energy production, improve
7	7	the resiliency and reliability of the United States electric grid, enhance
8	8	the health of the Nation’s rivers and associated wildlife habitats, and
9	9	for other purposes.
10	10	IN THE HOUSE OF REPRESENTATIVES
11	11	MARCH14, 2025
12	12	Mr. S
13	13	MITHof Nebraska (for himself, Ms. DELBENE, Mr. FITZPATRICK, Ms.
14	14	S
15	15	CHRIER, Ms. TENNEY, and Ms. GOODLANDER) introduced the following
16	16	bill; which was referred to the Committee on Ways and Means
17	17	A BILL
18	18	To amend the Internal Revenue Code of 1986 to support
19	19	upgrades at existing hydroelectric dams in order to in-
20	20	crease clean energy production, improve the resiliency
21	21	and reliability of the United States electric grid, enhance
22	22	the health of the Nation’s rivers and associated wildlife
23	23	habitats, and for other purposes.
24	24	Be it enacted by the Senate and House of Representa-1
25	25	tives of the United States of America in Congress assembled, 2
26	26	SECTION 1. SHORT TITLE. 3
27	27	This Act may be cited as the ‘‘Maintaining and En-4
28	28	hancing Hydroelectricity and River Restoration Act’’. 5
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31	31	•HR 2160 IH
32	32	SEC. 2. CREDIT FOR MAINTAINING AND ENHANCING HY-1
33	33	DROELECTRIC FACILITIES. 2
34	34	(a) I
35	35	NGENERAL.—Subpart E of part IV of sub-3
36	36	chapter A of chapter 1 of the Internal Revenue Code of 4
37	37	1986 is amended by inserting after section 48E the fol-5
38	38	lowing new section: 6
39	39	‘‘SEC. 48F. CREDIT FOR MAINTAINING AND ENHANCING HY-7
40	40	DROELECTRIC FACILITIES. 8
41	41	‘‘(a) I
42	42	NGENERAL.—For purposes of section 46, the 9
43	43	credit for maintaining and enhancing hydroelectric facili-10
44	44	ties for any taxable year is an amount equal to 30 percent 11
45	45	of the basis of any hydropower improvement property 12
46	46	placed in service during such taxable year. 13
47	47	‘‘(b) C
48	48	ERTAINPROGRESSEXPENDITURE RULES 14
49	49	M
50	50	ADEAPPLICABLE.—Rules similar to the rules of sub-15
51	51	sections (c)(4) and (d) of section 46 (as in effect on the 16
52	52	day before the date of the enactment of the Revenue Rec-17
53	53	onciliation Act of 1990) shall apply for purposes of sub-18
54	54	section (a). 19
55	55	‘‘(c) H
56	56	YDROPOWER IMPROVEMENT PROPERTY.—In 20
57	57	this section, the term ‘hydropower improvement property’ 21
58	58	means property— 22
59	59	‘‘(1) which— 23
60	60	‘‘(A) adds or improves fish passage at a 24
61	61	qualified dam, 25
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65	65	‘‘(B) maintains or improves the quality of 1
66	66	the water retained or released by a qualified 2
67	67	dam, 3
68	68	‘‘(C) promotes downstream sediment trans-4
69	69	port processes and habitat maintenance with re-5
70	70	spect to a qualified dam, 6
71	71	‘‘(D) upgrades, repairs, or reconstructs a 7
72	72	qualified dam to meet Federal dam safety and 8
73	73	security standards, 9
74	74	‘‘(E) improves the public uses of, and ac-10
75	75	cess to, public waterways impacted by a quali-11
76	76	fied dam in a manner consistent with a license 12
77	77	issued by the Federal Energy Regulatory Com-13
78	78	mission or a settlement agreement related to 14
79	79	such a license, 15
80	80	‘‘(F) removes an obsolete river obstruction, 16
81	81	or 17
82	82	‘‘(G) places into service an approved re-18
83	83	mote dam, and 19
84	84	‘‘(2) for which, prior to January 1, 2032, the 20
85	85	taxpayer receives written approval with respect to 21
86	86	any property described in paragraph (1) from the 22
87	87	Federal Energy Regulatory Commission or State or 23
88	88	local officials, as appropriate. 24
89	89	‘‘(d) O
90	90	THERDEFINITIONS.—In this section— 25
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94	94	‘‘(1) APPROVED REMOTE DAM .—The term ‘ap-1
95	95	proved remote dam’ means— 2
96	96	‘‘(A) a hydroelectric dam which— 3
97	97	‘‘(i) exclusively services communities 4
98	98	not interconnected to the Electric Reli-5
99	99	ability Council of Texas, the Eastern Inter-6
100	100	connection, or the Western Interconnec-7
101	101	tion, 8
102	102	‘‘(ii) was licensed by the Federal En-9
103	103	ergy Regulatory Commission before De-10
104	104	cember 31, 2020, 11
105	105	‘‘(iii) does not contribute to atmos-12
106	106	phere pollution, and 13
107	107	‘‘(iv) has a maximum net output of 14
108	108	not greater than 20 megawatts, and 15
109	109	‘‘(B) any interconnection property associ-16
110	110	ated with a dam described in subparagraph (A). 17
111	111	‘‘(2) F
112	112	ISH PASSAGE.—The term ‘fish passage’ 18
113	113	means, with respect to any qualified dam, any new 19
114	114	or upgraded turbine, fishway, or other fish passage 20
115	115	technology which improves fish migration and sur-21
116	116	vival rates. 22
117	117	‘‘(3) I
118	118	NTERCONNECTION PROPERTY .—The term 23
119	119	‘interconnection property’ means, with respect to 24
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123	123	any dam described in paragraph (1)(A), any tangible 1
124	124	property— 2
125	125	‘‘(A) to enable the delivery of electricity 3
126	126	from such dam to any customer, and 4
127	127	‘‘(B) which satisfies the requirements 5
128	128	under clauses (ii) and (iii) of section 6
129	129	48(a)(8)(B). 7
130	130	‘‘(4) O
131	131	BSOLETE RIVER OBSTRUCTION .—The 8
132	132	term ‘obsolete river obstruction’ means a qualified 9
133	133	nonpowered dam (as defined in section 34(e)(3) of 10
134	134	the Federal Power Act (16 U.S.C. 823e(e)(3))) no 11
135	135	longer serving its intended purpose. 12
136	136	‘‘(5) Q
137	137	UALIFIED DAM.—The term ‘qualified 13
138	138	dam’ means a hydroelectric dam that is licensed by 14
139	139	the Federal Energy Regulatory Commission or le-15
140	140	gally operating without such a license before the 16
141	141	date of enactment of this section.’’. 17
142	142	(b) E
143	143	LECTIVEPAYMENT ANDTRANSFER OFCRED-18
144	144	IT.— 19
145	145	(1) E
146	146	LECTIVE PAYMENT.—Section 6417 of the 20
147	147	Internal Revenue Code of 1986 is amended— 21
148	148	(A) in subsection (b), by adding at the end 22
149	149	the following: 23
150	150	‘‘(13) The credit for maintaining and enhancing 24
151	151	hydroelectric facilities under section 48F.’’, and 25
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155	155	(B) in subsection (d)(1)— 1
156	156	(i) in subparagraph (E), by striking 2
157	157	‘‘(C), or (D)’’ each place it appears and in-3
158	158	serting ‘‘(C), (D), or (E)’’, 4
159	159	(ii) by redesignating subparagraph 5
160	160	(E) (as amended by clause (i)) as subpara-6
161	161	graph (F), and 7
162	162	(iii) by inserting after subparagraph 8
163	163	(D) the following: 9
164	164	‘‘(E) E
165	165	LECTION WITH RESPECT TO CREDIT 10
166	166	FOR MAINTAINING AND ENHANCING HYDRO -11
167	167	ELECTRIC FACILITIES.—If a taxpayer other 12
168	168	than an entity described in subparagraph (A) 13
169	169	makes an election under this subparagraph with 14
170	170	respect to any taxable year in which such tax-15
171	171	payer has, after December 31, 2022, placed in 16
172	172	service hydropower improvement property (as 17
173	173	defined in section 48F(c)), such taxpayer shall 18
174	174	be treated as an applicable entity for purposes 19
175	175	of this section for such taxable year, but only 20
176	176	with respect to the credit described in sub-21
177	177	section (b)(13).’’. 22
178	178	(2) T
179	179	RANSFER.—Section 6418(f)(1)(A) of the 23
180	180	Internal Revenue Code of 1986 is amended by add-24
181	181	ing at the end the following: 25
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185	185	‘‘(xii) The credit for maintaining and 1
186	186	enhancing hydroelectric facilities under 2
187	187	section 48F.’’. 3
188	188	(c) C
189	189	ONFORMINGAMENDMENTS.— 4
190	190	(1) Section 46 of the Internal Revenue Code of 5
191	191	1986 is amended— 6
192	192	(A) in paragraph (6), by striking ‘‘and’’ at 7
193	193	the end, 8
194	194	(B) in paragraph (7), by striking the pe-9
195	195	riod at the end and inserting ‘‘, and’’, and 10
196	196	(C) by adding at the end the following: 11
197	197	‘‘(8) the credit for maintaining and enhancing 12
198	198	hydroelectric facilities.’’. 13
199	199	(2) Section 49(a)(1)(C) of such Code is amend-14
200	200	ed— 15
201	201	(A) in clause (vii), by striking ‘‘and’’ at the 16
202	202	end, 17
203	203	(B) in clause (viii), by striking the period 18
204	204	at the end and inserting ‘‘, and’’, and 19
205	205	(C) by adding at the end the following: 20
206	206	‘‘(ix) the basis of any hydropower im-21
207	207	provement property under section 48F.’’. 22
208	208	(3) Section 50 of such Code is amended— 23
209	209	(A) in subsection (a)(2)(E), as amended by 24
210	210	section 13702(b) of Public Law 117–169, by 25
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214	214	striking ‘‘or 48E(e)’’ and inserting ‘‘48E(e), or 1
215	215	48F(b)’’, and 2
216	216	(B) in subsection (d)(2)— 3
217	217	(i) in the matter preceding subpara-4
218	218	graph (A), by inserting ‘‘or any hydro-5
219	219	power improvement property (as defined in 6
220	220	section 48F(c))’’ after ‘‘any energy storage 7
221	221	technology (as defined in section 8
222	222	48(c)(6))’’, and 9
223	223	(ii) in subparagraph (B), by striking 10
224	224	‘‘energy storage technology’’ each place it 11
225	225	appears and inserting ‘‘energy storage 12
226	226	technology or hydropower improvement 13
227	227	property’’. 14
228	228	(4) The table of sections for subpart E of part 15
229	229	IV of subchapter A of chapter 1 of such Code is 16
230	230	amended by inserting after the item relating to sec-17
231	231	tion 48E the following new item: 18
232	232	‘‘Sec. 48F. Credit for maintaining and enhancing hydroelectric facilities.’’.
233	233	(d) EFFECTIVEDATE.—The amendments made by 19
234	234	this section shall apply to property placed in service after 20
235	235	December 31, 2022. 21
236	236	Æ
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