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Summary

Creates a federal investment tax credit equal to 30% of the basis of qualified hydropower improvement property placed in service after December 31, 2025. Eligible work includes fish passage, water-quality projects, dam safety upgrades, removal of obsolete obstructions, and bringing approved small remote dams into service; projects need written approval before January 1, 2035. The credit includes rules for elective payment (direct payment) and credit transfer to allow monetization and makes related changes to the Internal Revenue Code.

Key Points

• Creates a new 30% investment tax credit for qualified hydropower improvement property (new IRC section 48F).
• Credit applies to property placed in service after December 31, 2025.
• Eligible improvements include fish passage, water-quality work, dam safety upgrades, removal of obsolete obstructions, and approved small remote dams.
• Projects must obtain written approval before January 1, 2035 to qualify.