Maintaining and Enhancing Hydroelectricity and River Restoration Act

This bill creates a 30% federal tax credit to help pay for upgrades at existing hydroelectric dams and for removing old river barriers. The credit applies to work that helps fish move past dams, improves water quality, maintains wildlife habitat and sediment flow, upgrades dam safety and security, and improves public access to waterways. It can also cover putting an approved remote dam into service. The upgrade must receive written approval from federal, state, or local officials before January 1, 2032.

You can claim part of the credit early as the work progresses, but that reduces the amount you can claim at the end. Nonprofits and government entities can choose to receive the credit as a refund. The credit can also be sold to another taxpayer.

• Who is affected: People and organizations that upgrade qualified dams or remove obsolete river obstructions; communities that rely on healthy rivers and safe dams; certain tax‑exempt and government entities that can use the refund option.
• What changes: A 30% tax credit for approved hydropower and river‑health improvements; option to claim credits during construction; option for refunds for some entities; credits can be transferred/sold.
• When: Written approval must be obtained before January 1, 2032.