Bill offers 30% tax credit for hydroelectric dam upgrades

Q: What does this do?

This bill creates a 30% federal tax credit for certain improvements to existing hydroelectric dams. Qualifying projects include installing fish passages, improving water quality, removing old dams, making dams safer, and connecting small remote dams of up to 20 megawatts to off-grid communities. The project must have written approval from a federal, state, or local authority before January 1, 2032, and the property must be placed in service after December 31, 2022.

Q: What does it cost, and who pays?

The credit covers 30% of the cost of qualifying improvements. The bill does not specify a total government spending amount, but the credit reduces federal tax revenue for each qualifying project.

In committeeH.R. 2160Latest action Mar 14, 2025

Sponsor: Adrian Smith · Representative · NE

AIDecoded by AI · checked against the record

Read the official text

Official title: Maintaining and Enhancing Hydroelectricity and River Restoration Act

119th Congress

Topics: Jobs & the economy

Introduced: March 14, 2025

Read the official bill on Congress.gov

In plain words

The plain-language version comes first. The official text is always the reference.

HR 2160 offers dam owners a 30% federal for qualifying upgrades like fish passages, safety fixes, or dam removal, if approved before 2032.

60-second read · 5 questions answered below

What does this do?

This bill creates a 30% federal for certain improvements to existing hydroelectric dams. Qualifying projects include installing fish passages, improving water quality, removing old dams, making dams safer, and connecting small remote dams of up to 20 megawatts to off-grid communities. The project must have written approval from a federal, state, or local authority before January 1, 2032, and the property must be placed in service after December 31, 2022.

Who does it affect?

Dam owners and operators, including businesses, utilities, and other organizations that pay federal taxes, may qualify. Those who do not owe enough federal taxes to use the credit directly may be able to transfer it or receive a direct payment instead.

Why does it matter?

Dam owners who make qualifying improvements may be able to reduce their federal tax bill through this credit. Communities not connected to the main power grid could see changes in their local energy supply if nearby small dams are brought into service.

What does it cost, and who pays?

30% credit on qualifying improvements
No total spending cap specified

AI-drafted summary. Check it against the official text before you act on it.

Read the official bill on Congress.gov

Make the call

Three steps: where you stand, your script, the call.

Where do you stand?

Where does it stand?

IntroducedMar 14, 2025
House committeeYou are here · Mar 14, 2025
House vote
Senate
The president's desk

Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.

Latest action: March 14, 2025 — Referred to the House Committee on Ways and Means.

See how a call works

Share on WhatsApp