,i #aagth ,,congress #ast ,session ,h4 ,r4 #ddii ,,in ,,the ,,house ,,of ,,representatives ,july #af1 #bjba,mr4 ,young 7for himself1 ,ms4 ,kuster1 ,mr4 ,fitzpatrick1 and ,ms4 ,del,bene7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to support upgrades at existing hydroelectric dams and the removal of obsolete river obstructions to improve the health of the ,nation's rivers and associated wildlife habitat and increase clean energy production1 public safety1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,maintaining and ,enhancing ,hydroelectricity and ,river ,restoration ,act of #bjba4 #b4 ,credit for maintaining and enhancing hydroelectric dams 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding after section #dh;,c the following new section3 #dh;,d4 ,credit for maintaining and enhancing hydroelectric dams 7a7 ,in general ,for purposes of section #df1 the credit for maintaining and enhancing hydroelectric dams for any taxable year is #cj percent of the basis of any qualified dam safety1 environmental1 and grid resilience enhancement property placed in service during such taxable year4 7b7 ,limitation ,no credit shall be allowed under subsection 7a7 with respect to any qualified dam safety1 environmental1 and grid resilience property unless the qualified dam in connection with which such property was placed in service meets all applicable ,federal1 ,state1 and tribal requirements with respect to such dam on the date such property is placed in service4 7c7 ,certain progress expenditure rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7d7 ,definitions ,for purposes of this section-- 7#a7 ,qualified dam safety1 environmental1 and grid resilience property ,the term qualified dam safety1 environmental1 and grid resilience enhancement property means any property-- 7,a7 which is-- 7i7 dam safety property1 7ii7 environmental improvement property1 or 7iii7 grid resilience property1 7,b7 7i7 the construction1 reconstruction1 or erection of which is completed by the taxpayer1 or 7ii7 which is acquired by the taxpayer if the original use of such property commences with the taxpayer1 and 7,c7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable4 7#b7 ,dam safety property ,the term dam safety property means property the purpose of which is to maintain or improve dam safety on a qualified dam to ensure acceptable performance under all loading conditions 7static1 hydrologic1 seismic7 in accordance with applicable regulatory criteria and risk guidelines1 including-- 7,a7 the maintenance or upgrade of spillways or other appurtuant structures1 7,b7 dam stability1 including erosion repair and enhanced seepage controls1 and 7,c7 upgrades or replacements of floodgates or natural infrastructure restoration or protection to improve flood risk reduction4 7#c7 ,environmental improvement property ,the term environmental improvement property means property the purpose of which is to-- 7,a7 add or improve safe and effective fish passage1 including new or upgraded turbine technology1 fish ladders1 fishways1 and all other associated technology1 equipment1 or other fish passage technology to a qualified dam1 7,b7 maintain or improve the quality of the water retained or released by a qualified dam1 7,c7 promote downstream sediment transport processes and habitat maintenance with respect to a qualified dam1 or 7,d7 provide for or improve recreational access to the vicinity of a qualified dam1 including roads1 trails1 boat ingress and egress1 flows to improve recreation1 and infrastructure that improves river recreation opportunity4 7#d7 ,grid resilience property 7,a7 ,in general ,the term grid resilience property means property-- 7i7 the purpose of which is to provide the ability of a hydroelectric facility at a qualified dam to contribute to electricity grid resilience and efficiency by-- 7,i7 adapting more quickly to changing grid conditions1 7,,ii7 providing ancillary services 7including black start capabilities1 voltage support1 and spinning reserves71 7,,iii7 integrating other variable sources of electricity generation1 or 7,,iv7 managing accumulated reservoir sediments1 or 7ii7 which is a qualified dam described in paragraph 7#e77;,b74 7,b7 ,mitigation and environmental review requirements ,such term shall not include any property described in subparagraph 7,a77i7 unless any physical or operational changes instituted in connection with the activities described in such subparagraph have been authorized under applicable ,federal1 ,state1 and tribal permitting or licensing processes which include appropriate mitigation conditions arising from consultation and environmental review under such processes4 7#e7 ,qualified dam ,the term qualified dam means any of the following3 7,a7 ,a hydroelectric dam which is licensed by the ,federal ,energy ,regulatory ,commission or legally operating without such a license and was placed in service before the date of the enactment of this section4 7,b7 ,a hydroelectric dam which-- 7i7 was licensed by the ,federal ,energy ,regulatory ,commission before ,december #ca1 #bjbj1 7ii7 is under active license from the ,federal ,energy ,regulatory ,commission on the date of enactment of this section1 7iii7 meets the requirements of subclauses 7,i7 and 7,,iii7 of sections #bdb7;b77#a77;,b77ii7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehha71 7iv7 is placed in service on or after the date of the enactment of this section1 and 7v7 does not contribute to atmospheric pollution4 7,c7 ,any dam which-- 7i7 was placed in service before the date of the enactment of this section1 7ii7 is operated on such date of enactment for any beneficial public use except hydropower generation1 and 7iii7 is authorized after such date of the enactment for hydropower development by the ,federal ,energy ,regulatory ,commission1 the ,bureau of ,reclamation1 or a ,state1 as appropriate4 7,d7 ,any dam which was placed in service before the date of the enactment of this section and which is a qualified nonpowered dam 7as defined in section #cd7;e77#c7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbc;e7e77#c774 7e7 ,elective payment 7#a7 ,in general ,in the case of a taxpayer making an election 7at such time and in such manner as the ,secretary may provide7 under this subsection with respect to any portion of the credit which would 7without regard to this subsection7 be determined under this section with respect to such taxpayer1 such taxpayer shall be treated as making a payment against the tax imposed by subtitle ,a for the taxable year equal to #ajj percent of such amount4 7#b7 ,timing ,the payment described in subsection 7a7 shall be treated as made on the later of the due date of the return of tax for such taxable year or the date on which such return is filed4 7#c7 ,denial of double benefit ,solely for purposes of section #ch1 in the case of a taxpayer making an election under this subsection1 the credit determined under this section shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election4 7#d7 ,application to certain tax-exempt persons ,in the case of a taxpayer making an election under this subsection1 the credit subject to such an election shall be determined notwithstanding-- 7,a7 section #ej7;b77#c71 and 7,b7 section #ej7;b77#d71 with respect to an entity described in section #ej7;b77#d77;,a77i74 7f7 ,special rule for property financed by subsidized energy financing or tax-,exempt bonds ,for purposes of this section1 rules similar to the rules of section #dh7;a77#d7 7determined without regard to subparagraph 7,d7 thereof7 shall apply4 4 7b7 ,conforming amendments 7#a7 ,section #df of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#e71 by striking the period at the end of paragraph 7#f7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#g7 the credit for maintaining and enhancing hydroelectric dams4 4 7#b7 ,section #di7;a77#a77;,c7 of such ,code is amended by striking and at the end of clause 7iv71 by striking the period at the end of clause 7v7 and inserting 1 and1 and by adding at the end the following new clause3 7vi7 the basis of any qualified property taken into account under section #dh;,d7d74 4 7#c7 ,section #ej7;a77#b77;,e7 of such ,code is amended by striking or #dh;,c7b77#b7 and inserting #dh;,c7b77#b71 or #dh;,d7c74 7#d7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,c the following new item3 ,sec4 #dh;,d4 ,credit for maintaining and enhancing hydroelectric dams4 4 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #c4 ,credit for obsolete river obstruction removal expenditures 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding after section #de,t the following new section3 #de,u4 ,credit for obsolete river obstruction removal expenditures 7a7 ,in general ,for purposes of section #ch1 the credit for obsolete river obstruction removal expenditures for any taxable year is #cj percent of the qualified obsolete river obstruction removal expenditures incurred during such taxable year4 7b7 ,qualified obsolete river obstruction removal expenditures ,for purposes of this section-- 7#a7 ,in general ,the term qualified obsolete river obstruction removal expenditures means any expenditure to demolish and remove1 in whole or in part1 any dam described in paragraph 7#b7 and its associated infrastructure1 including all associated remediation and ecosystem restoration costs1 so long as-- 7,a7 the work is performed with the consent of the dam owner1 if available1 and 7,b7 none of the expenses incurred are used to demolish or remove a federally owned hydroelectric dam4 7#b7 ,dam described ,a dam is described in this paragraph if such dam is-- 7,a7 a qualified nonpowered dam 7as defined in section #cd7;e77#c7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbc;e7e77#c771 or 7,b7 a hydroelectric dam which is not owned by the ,federal government4 7c7 ,application to tax-,exempt entities 7#a7 ,in general ,in the case of qualified obsolete river obstruction removal expenditures incurred by an eligible entity1 the ,secretary shall promulgate regulations to allow the allocation of the credit under this section to the person primarily responsible for designing the property in lieu of the owner of such property1 with such person to be treated as the taxpayer for purposes of this section4 7#b7 ,eligible entity ,for purposes of this subsection1 the term eligible entity means-- 7,a7 a ,federal1 ,state1 or local government or a political subdivision thereof1 7,b7 an ,indian tribe 7as defined in section #de;,a7c77#f771 or 7,c7 an organization described in section #eja7;c7 and exempt from tax under section #eja7;a74 7d7 ,elective payment 7#a7 ,in general ,in the case of a taxpayer making an election 7at such time and in such manner as the ,secretary may provide7 under this subsection with respect to any portion of the credit which would 7without regard to this subsection7 be determined under this section with respect to such taxpayer1 such taxpayer shall be treated as making a payment against the tax imposed by subtitle ,a for the taxable year equal to #ajj percent of such amount4 7#b7 ,timing ,the payment described in subsection 7a7 shall be treated as made on the later of the due date of the return of tax for such taxable year or the date on which such return is filed4 7#c7 ,denial of double benefit ,solely for purposes of section #ch1 in the case of a taxpayer making an election under this subsection1 the credit determined under this section shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 the credit for obsolete river obstruction removal expenditures under section #de,u7a74 4 7#b7 ,section #bhj;,c of such ,code is amended by adding at the end the following new subsection3 7i7 ,credit for obsolete river obstruction removal expenditures ,no deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction taken into account in determining the credit under section #de,u for the taxable year which is equal to the amount of the credit determined for such taxable year under section #de,u7a74 4 7#c7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #de,t the following new item3 ,sec4 #de,u4 ,credit for obsolete river obstruction removal expenditures4 4 7c7 ,effective date ,the amendments made by this section shall apply to any obsolete river obstruction removal expenditures 7as defined in section #de,u of the ,internal ,revenue ,code of #aihf1 as added by this section7 incurred after the date of the enactment of this ,act4