,i #aaith ,,congress #ast ,session ,h4 ,r4 #bafj ,,in ,,the ,,house ,,of ,,representatives ,march #ad1 #bjbe,mr4 ,smith of ,nebraska 7for himself1 ,ms4 ,del,bene1 ,mr4 ,fitzpatrick1 ,ms4 ,schrier1 ,ms4 ,tenney1 and ,ms4 ,goodlander7 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 in order to increase clean energy production1 improve the resiliency and reliability of the ,united ,states electric grid1 enhance the health of the ,nation's rivers and associated wildlife habitats1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,maintaining and ,enhancing ,hydroelectricity and ,river ,restoration ,act4 #b4 ,credit for maintaining and enhancing hydroelectric facilities 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,e the following new section3 #dh;,f4 ,credit for maintaining and enhancing hydroelectric facilities 7a7 ,in general ,for purposes of section #df1 the credit for maintaining and enhancing hydroelectric facilities for any taxable year is an amount equal to #cj percent of the basis of any hydropower improvement property placed in service during such taxable year4 7b7 ,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 7c7 ,hydropower improvement property ,in this section1 the term hydropower improvement property means property-- 7#a7 which-- 7,a7 adds or improves fish passage at a qualified dam1 7,b7 maintains or improves the quality of the water retained or released by a qualified dam1 7,c7 promotes downstream sediment transport processes and habitat maintenance with respect to a qualified dam1 7,d7 upgrades1 repairs1 or reconstructs a qualified dam to meet ,federal dam safety and security standards1 7,e7 improves the public uses of1 and access to1 public waterways impacted by a qualified dam in a manner consistent with a license issued by the ,federal ,energy ,regulatory ,commission or a settlement agreement related to such a license1 7,f7 removes an obsolete river obstruction1 or 7,g7 places into service an approved remote dam1 and 7#b7 for which1 prior to ,january #a1 #bjcb1 the taxpayer receives written approval with respect to any property described in paragraph 7#a7 from the ,federal ,energy ,regulatory ,commission or ,state or local officials1 as appropriate4 7d7 ,other definitions ,in this section-- 7#a7 ,approved remote dam ,the term approved remote dam means-- 7,a7 a hydroelectric dam which-- 7i7 exclusively services communities not interconnected to the ,electric ,reliability ,council of ,texas1 the ,eastern ,interconnection1 or the ,western ,interconnection1 7ii7 was licensed by the ,federal ,energy ,regulatory ,commission before ,december #ca1 #bjbj1 7iii7 does not contribute to atmosphere pollution1 and 7iv7 has a maximum net output of not greater than #bj megawatts1 and 7,b7 any interconnection property associated with a dam described in subparagraph 7,a74 7#b7 ,fish passage ,the term fish passage means1 with respect to any qualified dam1 any new or upgraded turbine1 fishway1 or other fish passage technology which improves fish migration and survival rates4 7#c7 ,interconnection property ,the term interconnection property means1 with respect to any dam described in paragraph 7#a77;,a71 any tangible property-- 7,a7 to enable the delivery of electricity from such dam to any customer1 and 7,b7 which satisfies the requirements under clauses 7ii7 and 7iii7 of section #dh7;a77#h77;,b74 7#d7 ,obsolete river obstruction ,the term obsolete river obstruction means a qualified nonpowered dam 7as defined in section #cd7;e77#c7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbc;e7e77#c777 no longer serving its intended purpose4 7#e7 ,qualified dam ,the term qualified dam means a hydroelectric dam that is licensed by the ,federal ,energy ,regulatory ,commission or legally operating without such a license before the date of enactment of this section4 4 7b7 ,elective payment and transfer of credit 7#a7 ,elective payment ,section #fdag of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7b71 by adding at the end the following3 7#ac7 ,the credit for maintaining and enhancing hydroelectric facilities under section #dh;,f4 1 and 7,b7 in subsection 7d77#a7-- 7i7 in subparagraph 7,e71 by striking 7,c71 or 7,d7 each place it appears and inserting 7,c71 7,d71 or 7,e71 7ii7 by redesignating subparagraph 7,e7 7as amended by clause 7i77 as subparagraph 7,f71 and 7iii7 by inserting after subparagraph 7,d7 the following3 7,e7 ,election with respect to credit for maintaining and enhancing hydroelectric facilities ,if a taxpayer other than an entity described in subparagraph 7,a7 makes an election under this subparagraph with respect to any taxable year in which such taxpayer has1 after ,december #ca1 #bjbb1 placed in service hydropower improvement property 7as defined in section #dh;,f7c771 such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year1 but only with respect to the credit described in subsection 7b77#ac74 4 7#b7 ,transfer ,section #fdah7;f77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7xii7 ,the credit for maintaining and enhancing hydroelectric facilities under section #dh;,f4 4 7c7 ,conforming amendments 7#a7 ,section #df of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in paragraph 7#f71 by striking and at the end1 7,b7 in paragraph 7#g71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7#h7 the credit for maintaining and enhancing hydroelectric facilities4 4 7#b7 ,section #di7;a77#a77;,c7 of such ,code is amended-- 7,a7 in clause 7vii71 by striking and at the end1 7,b7 in clause 7viii71 by striking the period at the end and inserting 1 and1 and 7,c7 by adding at the end the following3 7ix7 the basis of any hydropower improvement property under section #dh;,f4 4 7#c7 ,section #ej of such ,code is amended-- 7,a7 in subsection 7a77#b77;,e71 as amended by section #acgjb7;b7 of ,public ,law #aag-afi1 by striking or #dh;,e7e7 and inserting #dh;,e7e71 or #dh;,f7b71 and 7,b7 in subsection 7d77#b7-- 7i7 in the matter preceding subparagraph 7,a71 by inserting or any hydropower improvement property 7as defined in section #dh;,f7c77 after any energy storage technology 7as defined in section #dh7;c77#f771 and 7ii7 in subparagraph 7,b71 by striking energy storage technology each place it appears and inserting energy storage technology or hydropower improvement property4 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;,e the following new item3 ,sec4 #dh;,f4 ,credit for maintaining and enhancing hydroelectric facilities4 4 7d7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbb4