Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025

This bill creates a 30% federal tax credit to help pay for upgrades at existing hydropower dams and nearby rivers. It covers projects that add fish passage, improve water quality, keep natural sediment moving to support habitat, upgrade dam safety and security, improve public access to waterways, remove old river obstructions, and put approved remote dams into service. The aim is to boost clean energy, keep the electric grid reliable, and improve river and wildlife health.

To qualify, the work must get written approval from the Federal Energy Regulatory Commission or state/local officials before January 1, 2035. For some projects, you can claim part of the credit early as you make progress, but anything claimed early reduces what you can claim when the project is finished. Certain tax‑exempt and government entities can treat the credit like a tax payment and receive a refund, and the credit can also be transferred (sold) to someone else.

Key points

• Who is affected: Entities doing qualifying hydropower and river improvement projects; certain tax‑exempt and governmental entities may receive refunds.
• What changes: New 30% tax credit; option to claim part of the credit during project construction; ability for some public and nonprofit entities to get refunds; credits can be sold to others.
• When: Project approvals must be in place before January 1, 2035.