S. 1183 · Where this bill is now
In committee
Introduced in the Senate, Mar 27, 2025
What this bill does
In plain words · AI-written from the official summaryTax credit for hydropower dam improvements
This bill creates a 30% tax credit for investments in hydropower improvement projects at dams. These projects include things like adding fish passage systems, improving water quality, upgrading dam safety, removing old river obstructions, and improving public access to waterways. Companies and organizations can claim this credit for their costs, and in some cases they can claim it early while projects are still under construction.
How it affects you
If you own or operate a hydropower dam or related business, this tax credit could reduce the cost of making improvements to your facilities. Tax-exempt organizations and government entities can also benefit by receiving refunds on the credits they generate. Most everyday Americans won't directly claim this credit themselves, but the improvements funded by it could eventually affect water quality, fish populations, and public access to rivers in their area.
Read the official summary (Introduced in Senate, Mar 27, 2025)
Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025
This 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 that
• adds 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; or
• places 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).
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1183
A BILL
Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025
Sponsor: Sen. Maria Cantwell (D-WA) · Introduced Mar 27, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 27, 2025: “Read twice and referred to the Committee on Finance.”