Rep. Adrian Smith (R-NE), along with a number of cosponsors, recently introduced H.R. 2160, the Maintaining and Enhancing Hydroelectricity and River Restoration Act.
The legislation would allow a 30 percent investment tax credit (ITC) for hydroelectric investments through Fiscal Year 2031. Importantly, this tax credit would be available to public power utilities through direct pay (also known as “elective pay”).
APPA strongly supports H.R. 2160.
Cosponsors of the bill are Suzan DelBene (D-WA), Brian Fitzpatrick (R-PA), Kim Schrier (D-WA), Claudia Tenney (R-NY), and Maggie Goodlander (D-NH),
The ITC in the Inflation Reduction Act (Public Law No: 117-169) only applies to upgrades at hydropower facilities, not for environmental or safety upgrades necessary to maintain existing facilities and complete the relicensing process.
Without the tax incentive support in H.R. 2160, many existing hydropower dams could close, threatening the reliability of the grid and the nation’s ability to achieve emission reduction goals.
A companion bill in the Senate is expected from Senators Lisa Murkowski (R-AK) and Maria Cantwell (D-WA) soon.
