H.R. 2160 — Maintaining and Enhancing Hydroelectricity and River Restoration Act

This section establishes a new tax credit under new IRC §48F equal to 30% of the basis of hydropower improvement property placed in service during the taxable year. Hydropower improvement property includes property that (1) adds or improves fish passage, maintains or improves water quality, promotes downstream sediment transport and habitat maintenance, upgrades or repairs to meet federal dam safety standards, improves public access to impacted waterways consistent with FERC licenses or settlements, removes an obsolete river obstruction (i.e., a qualified nonpowered dam no longer serving its purpose), or places into service an approved remote dam at a qualified dam (i.e., FERC-licensed hydroelectric dam or one legally operating without a license before enactment); and (2) receives prior written approval from FERC or state/local officials before January 1, 2032. The section makes the credit eligible for elective payment under IRC §6417 (treating certain non-applicable-entity taxpayers as applicable entities solely for this credit if property is placed in service after December 31, 2022) and transfer under IRC §6418, and includes conforming amendments to IRC §§46, 49, and 50 to incorporate the credit and property.