Senator Maria Cantwell (D-WA) recently introduced the bipartisan Maintaining and Enhancing Hydroelectricity and River Restoration Act.
The bill (S. 1183) is cosponsored by Senators Lisa Murkowski (R-AK), Angus King (I-ME), Susan Collins (R-ME), Gary Peters (D-MI), Dan Sullivan (R-AK), Jeanne Shaheen (D-NH), Patty Murray (D-WA), and Kirsten Gillibrand (D-NY).
The bill would allow a 30 percent investment tax credit (ITC) for hydroelectric investments through Fiscal Year 2031, and is the Senate companion to H.R. 2160, introduced by Rep. Adrian Smith (R-NE) on March 14. Importantly, this tax credit would be available to public power utilities through direct pay (also known as “elective pay”).
The ITC in the Inflation Reduction Act 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 from either bill, many existing hydropower dams could close, threatening the reliability of the grid and the nation’s ability to achieve emission reduction goals.
APPA strongly supports S. 1183 and H.R. 2160.
