Summary

Creates a new 30% investment tax credit for eligible hydropower improvement property placed in service. The credit covers upgrades and actions such as fish passage, water‑quality improvements, removal of obsolete obstructions, and bringing approved remote dams into service, and it includes rules for claiming, transferring, and timing of the credit along with related amendments to the Internal Revenue Code.

Key Points

• Establishes Section 48F: a new 30% investment tax credit for qualifying hydropower improvement property placed in service.
• Specifically lists eligible activities such as fish passage, water‑quality work, removal of obsolete obstructions, and bringing approved remote dams into service.
• Adds rules for claiming the credit, including placement‑in‑service requirements and documentation.
• Allows transferability of the credit so owners/developers can sell or assign credits under specified conditions.
• Amends related Internal Revenue Code provisions so the new credit is recognized across applicable tax rules.
• Requires administrative approvals and sets deadlines/effective date language tied to eligibility and claiming.
• Likely to lower net project costs for hydropower upgrades and encourage environmental remediation or modernization.
• Will require new IRS/Treasury guidance and forms to implement claim and transfer procedures.

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