Sec. 101. Credit for maintaining and enhancing hydroelectric facilities
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Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section: For purposes of section 46, the credit for maintaining and enhancing hydroelectric facilities for any taxable year is an amount equal to 30 percent of the basis of any hydropower improvement property placed in service during such taxable year. Rules similar to the rules of subsections (c)(4) and
(d)of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). In this section, the term hydropower improvement property means property which— adds or improves fish passage at a qualified dam, maintains or improves the quality of the water retained or released by a qualified dam, promotes downstream sediment transport processes and habitat maintenance with respect to a qualified dam, is part of a marine energy technology project or a marine energy project, or places into service an approved remote dam. In this section— The term approved remote dam means— a hydroelectric dam which— exclusively services communities not interconnected to the Electric Reliability Council of Texas, the Eastern Interconnection, or the Western Interconnection, does not contribute to atmosphere pollution, and has a maximum net output of not greater than 40 megawatts, and any interconnection property associated with a dam described in subparagraph (A). The term Commission means the Federal Energy Regulatory Commission. The term fish passage means, with respect to any qualified dam, any new or upgraded turbine, fishway, or other fish passage technology which improves fish migration and survival rates. The term interconnection property means any tangible property— with respect to any dam described in paragraph (1)(A), to enable the delivery of electricity from such dam to any customer, or with respect to any project described paragraph (5)(A) or (6)(A), to enable the delivery of electricity from such project to any customer, and which satisfies the requirements under clauses
(ii)and
(iii)of section 48(a)(8)(B). The term marine energy project means— a project which produces electricity from— waves, tides, and currents in oceans, estuaries, and tidal areas, free flowing water in rivers, lakes, streams, and man-made channels, differentials in salinity and pressure gradients, or differentials in water temperature, including ocean thermal energy conversion, and any interconnection property associated with a project described in subparagraph (A). The term marine energy technology project means— a project which the Commission determines— will produce electricity from a generator that converts the potential energy of flowing water, will utilize a generating technology that is not in widespread, utility scale use in the United States as of the date of enactment of this section, will not be, based on information available to the Commission, likely to jeopardize the continued existence of any species listed as a threatened species or an endangered species under the Endangered Species Act of 1973, and will not be, based on information available to the Commission, likely to result in the destruction or adverse modification of an area designated as critical habitat for any species listed as a threatened species or an endangered species under such Act, and any interconnection property associated with a project described in subparagraph (A). The term qualified dam means a hydroelectric dam that is licensed by the Commission or legally operating without such a license before the date of enactment of this section. . Section 6417 of the Internal Revenue Code of 1986 is amended— in subsection (b), by adding at the end the following: The credit for maintaining and enhancing hydroelectric facilities under section 48F. , and in subsection (d)(1)— in subparagraph (E), by striking (C), or
(D)each place it appears and inserting (C), (D), or
(E), by redesignating subparagraph
(E)(as amended by clause (i)) as subparagraph (F), and by inserting after subparagraph
(D)the following: If a taxpayer other than an entity described in subparagraph
(A)makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, placed in service hydropower improvement property (as defined in section 48F(c)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(13). . Section 6418(f)(1)(A) of the Internal Revenue Code of 1986 is amended by adding at the end the following: The credit for maintaining and enhancing hydroelectric facilities under section 48F. . Section 46 of the Internal Revenue Code of 1986 is amended— in paragraph (6), by striking and at the end, in paragraph (7), by striking the period at the end and inserting , and , and by adding at the end the following: the credit for maintaining and enhancing hydroelectric facilities. . Section 49(a)(1)(C) of such Code is amended— in clause (vii), by striking and at the end, in clause (viii), by striking the period at the end and inserting , and , and by adding at the end the following: the basis of any hydropower improvement property under section 48F. . Section 50 of such Code is amended— in subsection (a)(2)(E), as amended by section 13702(b) of Public Law 117–169 , by striking or 48E(e) and inserting 48E(e), or 48F(b) , and in subsection (d)(2)— in the matter preceding subparagraph (A), by inserting or any hydropower improvement property (as defined in section 48F(c)) after any energy storage technology (as defined in section 48(c)(6)) , and in subparagraph (B), by striking energy storage technology each place it appears and inserting energy storage technology or hydropower improvement property . The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48E the following new item: Sec. 48F. Credit for maintaining and enhancing hydroelectric facilities. . The amendments made by this section shall apply to property placed in service after December 31, 2022.
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Sec. 101
Credit for maintaining and enhancing hydroelectric facilities
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