,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #ddii  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #af1 #bjba,mr4  
,"y 7= himself1 ,ms4 ,ku/]1 ,mr4        
,fitzpatrick1 & ,ms4 ,del,bene7         
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to support upgrades at    
exi/+ hydroelectric dams & ! removal (  
obsolete riv] ob/ructions to improve !  
heal? ( ! ,nation's riv]s & associat$   
wildlife habitat & increase clean en]gy 
production1 public safety1 & = o!r      
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,ma9ta9+ & ,enhanc+        
,hydroelectricity & ,riv] ,re/oration   
,act ( #bjba4  #b4 ,cr$it = ma9ta9+ &   
enhanc+ hydroelectric dams  7a7 ,9 g5]al
 ,subp>t ,e ( "p ,,iv ( sub*apt] ,a (   
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ aft] section     
#dh;,c ! foll[+ new section3  #dh;,d4   
,cr$it = ma9ta9+ & enhanc+ hydroelectric
 dams  7a7 ,9 g5]al ,= purposes (       

section #df1 ! cr$it = ma9ta9+ & enhanc+
 hydroelectric dams = any taxable ye> is
 #cj p]c5t ( ! basis ( any qualifi$ dam 
safety1 environm5tal1 & grid resili5ce  
enhancem5t prop]ty plac$ 9 s]vice dur+  
su* taxable ye>4  7b7 ,limitation ,no   
cr$it %all be all[$ "u subsection 7a7 ) 
respect to any qualifi$ dam safety1     
environm5tal1 & grid resili5ce prop]ty  
unless ! qualifi$ dam 9 connection ) :i*
 su* prop]ty 0 plac$ 9 s]vice meets all 
applicable ,f$]al1 ,/ate1 & tribal      
requirem5ts ) respect to su* dam on !   
date su* prop]ty is plac$ 9 s]vice4  7c7
 ,c]ta9 progress exp5diture rules made  
applicable ,rules simil> to ! rules (   
subsections 7c77#d7 & 7d7 ( section #df 
7z 9 effect on ! day be=e ! date ( !    
enactm5t ( ! ,rev5ue ,reconciliation    
,act ( #aiij7 %all apply = purposes (   
subsection 7a74  7d7 ,def9itions ,=     
purposes ( ?is section-- 7#a7 ,qualifi$ 
dam safety1 environm5tal1 & grid        
resili5ce prop]ty ,! t]m qualifi$ dam   
safety1 environm5tal1 & grid resili5ce  

enhancem5t prop]ty means any prop]ty--  
7,a7 :i* is-- 7i7 dam safety prop]ty1   
7ii7 environm5tal improvem5t prop]ty1 or
  7iii7 grid resili5ce prop]ty1  7,b7   
7i7 ! con/ruction1 recon/ruction1 or    
erection ( :i* is complet$ by ! taxpay]1
 or  7ii7 :i* is acquir$ by ! taxpay] if
 ! orig9al use ( su* prop]ty comm5ces ) 
! taxpay]1 &  7,c7 ) respect to :i*     
depreciation 7or amortization 9 lieu (  
depreciation7 is all[able4  7#b7 ,dam   
safety prop]ty ,! t]m dam safety prop]ty
 means prop]ty ! purpose ( :i* is to    
ma9ta9 or improve dam safety on a       
qualifi$ dam to ensure acceptable       
p]=mance "u all load+ conditions 7/atic1
 hydrologic1 seismic7 9 accordance )    
applicable regulatory crit]ia & risk    
guidel9es1 includ+-- 7,a7 ! ma9t5ance or
 upgrade ( spillways or o!r appurtuant  
/ructures1  7,b7 dam /ability1 includ+  
erosion repair & enhanc$ seepage        
controls1 &  7,c7 upgrades or           
replacem5ts ( floodgates or natural     
infra/ructure re/oration or protection  

to improve flood risk r$uction4  7#c7   
,environm5tal improvem5t prop]ty ,! t]m 
environm5tal improvem5t prop]ty means   
prop]ty ! purpose ( :i* is to-- 7,a7 add
 or improve safe & effective fi%        
passage1 includ+ new or upgrad$ turb9e  
te*nology1 fi% ladd]s1 fi%ways1 & all   
o!r associat$ te*nology1 equipm5t1 or   
o!r fi% passage te*nology to a qualifi$ 
dam1  7,b7 ma9ta9 or improve ! quality (
 ! wat] reta9$ or releas$ by a qualifi$ 
dam1  7,c7 promote d[n/ream s$im5t      
transport processes & habitat ma9t5ance 
) respect to a qualifi$ dam1 or  7,d7   
provide = or improve recreational access
 to ! vic9ity ( a qualifi$ dam1 includ+ 
roads1 trails1 boat +ress & egress1 fl[s
 to improve recreation1 & infra/ructure 
t improves riv] recreation opportunity4 
7#d7 ,grid resili5ce prop]ty  7,a7 ,9   
g5]al ,! t]m grid resili5ce prop]ty     
means prop]ty-- 7i7 ! purpose ( :i* is  
to provide ! ability ( a hydroelectric  
facility at a qualifi$ dam to contribute
 to electricity grid resili5ce &        

effici5cy by-- 7,i7 adapt+ m quickly to 
*ang+ grid conditions1  7,,ii7 provid+  
ancill>y s]vices 7includ+ black />t     
capabilities1 voltage support1 & sp9n+  
res]ves71  7,,iii7 integrat+ o!r v>iable
 s\rces ( electricity g5]ation1 or      
7,,iv7 manag+ accumulat$ res]voir       
s$im5ts1 or  7ii7 :i* is a qualifi$ dam 
describ$ 9 p>agraph 7#e77;,b74  7,b7    
,mitigation & environm5tal review       
requirem5ts ,su* t]m %all n include any 
prop]ty describ$ 9 subp>agraph 7,a77i7  
unless any physical or op]ational *anges
 in/itut$ 9 connection ) ! activities   
describ$ 9 su* subp>agraph h be5        
au?oriz$ "u applicable ,f$]al1 ,/ate1 & 
tribal p]mitt+ or lic5s+ processes :i*  
include appropriate mitigation          
conditions aris+ f consultation &       
environm5tal review "u su* processes4   
7#e7 ,qualifi$ dam ,! t]m qualifi$ dam  
means any ( ! foll[+3 7,a7 ,a           
hydroelectric dam :i* is lic5s$ by !    
,f$]al ,en]gy ,regulatory ,commission or
 legally op]at+ )\t su* a lic5se & 0    

plac$ 9 s]vice be=e ! date ( ! enactm5t 
( ?is section4  7,b7 ,a hydroelectric   
dam :i*-- 7i7 0 lic5s$ by ! ,f$]al      
,en]gy ,regulatory ,commission be=e     
,decemb] #ca1 #bjbj1  7ii7 is "u active 
lic5se f ! ,f$]al ,en]gy ,regulatory    
,commission on ! date ( enactm5t ( ?is  
section1  7iii7 meets ! requirem5ts (   
subclauses 7,i7 & 7,,iii7 ( sections    
#bdb7;b77#a77;,b77ii7 ( ! ,en]gy ,policy
 ,act ( #bjje 7#db ,u4,s4,c4 #aehha71   
7iv7 is plac$ 9 s]vice on or aft] ! date
 ( ! enactm5t ( ?is section1 &  7v7 does
 n contribute to atmosph]ic pollution4  
7,c7 ,any dam :i*-- 7i7 0 plac$ 9 s]vice
 be=e ! date ( ! enactm5t ( ?is section1
  7ii7 is op]at$ on su* date ( enactm5t 
= any b5eficial public use except       
hydrop[] g5]ation1 &  7iii7 is au?oriz$ 
aft] su* date ( ! enactm5t = hydrop[]   
developm5t by ! ,f$]al ,en]gy           
,regulatory ,commission1 ! ,bureau (    
,reclamation1 or a ,/ate1 z appropriate4
  7,d7 ,any dam :i* 0 plac$ 9 s]vice    
be=e ! date ( ! enactm5t ( ?is section &

 :i* is a qualifi$ nonp[]$ dam 7z def9$ 
9 section #cd7;e77#c7 ( ! ,f$]al ,p[]   
,act 7#af ,u4,s4,c4  #hbc;e7e77#c774    
7e7 ,elective paym5t  7#a7 ,9 g5]al ,9 !
 case ( a taxpay] mak+ an election 7at  
su* "t & 9 su* mann] z ! ,secret>y may  
provide7 "u ?is subsection ) respect to 
any portion ( ! cr$it :i* w\ld 7)\t     
reg>d to ?is subsection7 be det]m9$ "u  
?is section ) respect to su* taxpay]1   
su* taxpay] %all be treat$ z mak+ a     
paym5t aga9/ ! tax impos$ by subtitle ,a
 = ! taxable ye> equal to #ajj p]c5t (  
su* am\nt4  7#b7 ,tim+ ,! paym5t        
describ$ 9 subsection 7a7 %all be treat$
 z made on ! lat] ( ! due date ( !      
return ( tax = su* taxable ye> or ! date
 on :i* su* return is fil$4  7#c7 ,d5ial
 ( d\ble b5efit ,solely = purposes (    
section #ch1 9 ! case ( a taxpay] mak+  
an election "u ?is subsection1 ! cr$it  
det]m9$ "u ?is section %all be r$uc$ by 
! am\nt ( ! portion ( su* cr$it )       
respect to :i* ! taxpay] makes su*      
election4  7#d7 ,application to c]ta9   

tax-exempt p]sons ,9 ! case ( a taxpay] 
mak+ an election "u ?is subsection1 !   
cr$it subject to su* an election %all be
 det]m9$ not)/&+-- 7,a7 section         
#ej7;b77#c71 &  7,b7 section            
#ej7;b77#d71 ) respect to an entity     
describ$ 9 section #ej7;b77#d77;,a77i74 
7f7 ,special rule = prop]ty f9anc$ by   
subsidiz$ en]gy f9anc+ or tax-,exempt   
bonds ,= purposes ( ?is section1 rules  
simil> to ! rules ( section #dh7;a77#d7 
7det]m9$ )\t reg>d to subp>agraph 7,d7  
!re(7 %all apply4  4  7b7 ,con=m+       
am5dm5ts  7#a7 ,section #df ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by /rik+
 & at ! end ( p>agraph 7#e71 by /rik+ ! 
p]iod at ! end ( p>agraph 7#f7 & ins]t+ 
1 &1 & by add+ at ! end ! foll[+ new    
p>agraph3  7#g7 ! cr$it = ma9ta9+ &     
enhanc+ hydroelectric dams4  4  7#b7    
,section #di7;a77#a77;,c7 ( su* ,code is
 am5d$ by /rik+ & at ! end ( clause     
7iv71 by /rik+ ! p]iod at ! end ( clause
 7v7 & ins]t+ 1 &1 & by add+ at ! end ! 
foll[+ new clause3  7vi7 ! basis ( any  

qualifi$ prop]ty tak5 into acc\nt "u    
section #dh;,d7d74  4  7#c7 ,section    
#ej7;a77#b77;,e7 ( su* ,code is am5d$ by
 /rik+ or #dh;,c7b77#b7 & ins]t+        
#dh;,c7b77#b71 or #dh;,d7c74  7#d7 ,!   
table ( sections = subp>t ,e ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #dh;,c ! foll[+ new item3  ,sec4
 #dh;,d4 ,cr$it = ma9ta9+ & enhanc+     
hydroelectric dams4  4  7c7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to prop]ty plac$ 9 s]vice    
aft] ! date ( ! enactm5t ( ?is ,act1 "u 
rules simil> to ! rules ( section #dh7m7
 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9
 effect on ! day be=e ! date ( !        
enactm5t ( ! ,rev5ue ,reconciliation    
,act ( #aiij74  #c4 ,cr$it = obsolete   
riv] ob/ruction removal exp5ditures  7a7
 ,9 g5]al ,subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
aft] section #de,t ! foll[+ new section3
  #de,u4 ,cr$it = obsolete riv]         

ob/ruction removal exp5ditures  7a7 ,9  
g5]al ,= purposes ( section #ch1 ! cr$it
 = obsolete riv] ob/ruction removal     
exp5ditures = any taxable ye> is #cj    
p]c5t ( ! qualifi$ obsolete riv]        
ob/ruction removal exp5ditures incurr$  
dur+ su* taxable ye>4  7b7 ,qualifi$    
obsolete riv] ob/ruction removal        
exp5ditures ,= purposes ( ?is section-- 
7#a7 ,9 g5]al ,! t]m qualifi$ obsolete  
riv] ob/ruction removal exp5ditures     
means any exp5diture to demoli% &       
remove1 9 :ole or 9 "p1 any dam describ$
 9 p>agraph 7#b7 & its associat$        
infra/ructure1 includ+ all associat$    
rem$iation & ecosy/em re/oration co/s1 s
 long z-- 7,a7 ! "w is p]=m$ ) ! cons5t 
( ! dam own]1 if available1 &  7,b7 none
 ( ! exp5ses incurr$ are us$ to demoli% 
or remove a f$]ally own$ hydroelectric  
dam4  7#b7 ,dam describ$ ,a dam is      
describ$ 9 ?is p>agraph if su* dam is-- 
7,a7 a qualifi$ nonp[]$ dam 7z def9$ 9  
section #cd7;e77#c7 ( ! ,f$]al ,p[] ,act
 7#af ,u4,s4,c4  #hbc;e7e77#c771 or     

7,b7 a hydroelectric dam :i* is n own$  
by ! ,f$]al gov]nm5t4  7c7 ,application 
to tax-,exempt entities  7#a7 ,9 g5]al  
,9 ! case ( qualifi$ obsolete riv]      
ob/ruction removal exp5ditures incurr$  
by an eligible entity1 ! ,secret>y %all 
promulgate regulations to all[ !        
allocation ( ! cr$it "u ?is section to !
 p]son prim>ily responsible = design+ ! 
prop]ty 9 lieu ( ! own] ( su* prop]ty1 )
 su* p]son to be treat$ z ! taxpay] =   
purposes ( ?is section4  7#b7 ,eligible 
entity ,= purposes ( ?is subsection1 !  
t]m eligible entity means-- 7,a7 a      
,f$]al1 ,/ate1 or local gov]nm5t or a   
political subdivision !re(1  7,b7 an    
,indian tribe 7z def9$ 9 section        
#de;,a7c77#f771 or  7,c7 an organization
 describ$ 9 section #eja7;c7 & exempt f 
tax "u section #eja7;a74  7d7 ,elective 
paym5t  7#a7 ,9 g5]al ,9 ! case ( a     
taxpay] mak+ an election 7at su* "t & 9 
su* mann] z ! ,secret>y may provide7 "u 
?is subsection ) respect to any portion 
( ! cr$it :i* w\ld 7)\t reg>d to ?is    

subsection7 be det]m9$ "u ?is section ) 
respect to su* taxpay]1 su* taxpay] %all
 be treat$ z mak+ a paym5t aga9/ ! tax  
impos$ by subtitle ,a = ! taxable ye>   
equal to #ajj p]c5t ( su* am\nt4  7#b7  
,tim+ ,! paym5t describ$ 9 subsection   
7a7 %all be treat$ z made on ! lat] ( ! 
due date ( ! return ( tax = su* taxable 
ye> or ! date on :i* su* return is fil$4
  7#c7 ,d5ial ( d\ble b5efit ,solely =  
purposes ( section #ch1 9 ! case ( a    
taxpay] mak+ an election "u ?is         
subsection1 ! cr$it det]m9$ "u ?is      
section %all be r$uc$ by ! am\nt ( !    
portion ( su* cr$it ) respect to :i* !  
taxpay] makes su* election4  4  7b7     
,con=m+ am5dm5ts  7#a7 ,section #ch7;b7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by /rik+ plus at ! end ( p>agraph 
7#cb71 by /rik+ ! p]iod at ! end (      
p>agraph 7#cc7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#cd7 ! cr$it = obsolete riv] ob/ruction
 removal exp5ditures "u section         
#de,u7a74  4  7#b7 ,section #bhj;,c (   

su* ,code is am5d$ by add+ at ! end !   
foll[+ new subsection3  7i7 ,cr$it =    
obsolete riv] ob/ruction removal        
exp5ditures ,no d$uction %all be all[$ =
 t portion ( ! exp5ses o!rwise all[able 
z a d$uction tak5 into acc\nt 9 det]m9+ 
! cr$it "u section #de,u = ! taxable ye>
 :i* is equal to ! am\nt ( ! cr$it      
det]m9$ = su* taxable ye> "u section    
#de,u7a74  4  7#c7 ,! table ( sections =
 subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( su* ,code is am5d$ by ins]t+ 
aft] ! item relat+ to section #de,t !   
foll[+ new item3  ,sec4 #de,u4 ,cr$it = 
obsolete riv] ob/ruction removal        
exp5ditures4  4  7c7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to any obsolete riv] ob/ruction removal 
exp5ditures 7z def9$ 9 section #de,u ( !
 ,int]nal ,rev5ue ,code ( #aihf1 z add$ 
by ?is section7 incurr$ aft] ! date ( ! 
enactm5t ( ?is ,act4