Sponsors (3)
Creates a 30% investment tax credit for qualifying hydropower improvement property and launches a pilot loan program to help U.S.-flagged commercial fishing vessels convert to alternative fuels. Expands eligibility in multiple USDA and NOAA programs to explicitly include commercial fishing, wild-caught fish, and fish processing; funds new shore-side grants for rural seafood processing and working waterfront improvements; establishes a Maritime Workforce Grant Program; and creates regionally distributed Ocean Innovation Clusters and Centers. Most new programs are authorized for annual funding in fiscal years 2026–2030.
Create a new Internal Revenue Code section (48F) establishing a tax credit equal to 30 percent of the basis of any hydropower improvement property placed in service during the taxable year.
Apply rules similar to section 46(c)(4) and 46(d) (progress expenditure rules) for purposes of the new 48F credit.
Define "hydropower improvement property" to include property that: (1) adds or improves fish passage at a qualified dam, (2) maintains or improves water quality retained or released by a qualified dam, (3) promotes downstream sediment transport and habitat maintenance for a qualified dam, (4) is part of a marine energy technology project or marine energy project, or (5) places into service an approved remote dam.
Define "approved remote dam" as a hydroelectric dam that (A) exclusively services communities not interconnected to ERCOT, the Eastern Interconnection, or the Western Interconnection, (B) does not contribute to atmosphere pollution, and (C) has maximum net output not greater than 40 megawatts; includes associated interconnection property.
Define "Commission" to mean the Federal Energy Regulatory Commission (FERC).
Last progress June 5, 2025 (8 months ago)
Introduced on June 5, 2025 by Lisa Murkowski
Who is affected and how:
Commercial fishing industry and vessel owners: The bill directly benefits commercial fishers and owners of U.S.-flagged fishing vessels by expanding access to loans and loan pilots for fuel conversion, making more federal loan and grant programs explicitly available to them, and supporting investments in shore-side processing and waterfront infrastructure. Vessel owners who invest in alternative fuels may receive loan support and related technical/regulatory guidance.
Seafood processors and cold-storage operators: Rural and coastal processors gain access to a new USDA competitive grant program that funds construction and rehabilitation of processing and cold storage capacity, with a priority for small facilities (under 50 employees). This should lower barriers to expanding processing capacity and reducing post-harvest loss.
Rural coastal communities and working waterfronts: Communities with fishing and port-related economies receive grants for processing facilities and working‑waterfront resilience and access projects. The working waterfront program caps federal shares at 50% and forbids eminent domain, which shapes project financing and local control.
Maritime workforce and training providers: The Maritime Workforce Grant Program supports training, recruitment, apprenticeships, and outreach. Seafarers, port workers, educators, training institutions, and rural applicants stand to receive funding for workforce development and retention.
Hydropower owners/operators and clean-energy investors: The 30% tax credit lowers the net cost of qualifying hydropower improvements, creating an incentive to modernize existing hydropower assets and improve efficiency or environmental performance.
Federal agencies and program administrators (NOAA, USDA, DOT/MarAd, EDA, Coast Guard): Agencies must set up pilots, modify eligibility rules, issue action plans and regulations, run competitions, and report to Congress. This increases administrative workload and requires interagency coordination.
Budgetary and fiscal impact: The bill authorizes multi-year funding for several programs (FY2026–2030) and creates a tax expenditure for the hydropower credit; implementation will have discretionary spending needs and revenue effects associated with the tax credit. Specific appropriation decisions and revenue scoring would determine actual fiscal impacts.
Environmental and economic implications: The bill aims to support decarbonization (vessel fuel conversions, hydropower upgrades), strengthen domestic seafood processing capacity, protect working waterfronts from climate impacts, and grow regional ocean innovation ecosystems. Benefits could include reduced fuel emissions, increased local processing jobs, improved supply chain resilience, and regional economic development. Tradeoffs include federal budget costs and the need for effective program administration to reach intended beneficiaries.
Read twice and referred to the Committee on Finance.