The Voter Purge Protection Act establishes a new investment tax credit of 30% for improving or upgrading hydropower facilities. This includes adding or improving fish passage, maintaining water quality, upgrading safety and security standards, and removing obsolete river obstructions. The bill also allows tax-exempt entities to treat the credit as a payment and get a refund.
Latest Action
Read twice and referred to the Committee on Finance.
AI Summary
Plain-English explanation of this bill
The Voter Purge Protection Act establishes a new investment tax credit of 30% for improving or upgrading hydropower facilities. This includes adding or improving fish passage, maintaining water quality, upgrading safety and security standards, and removing obsolete river obstructions. The bill also allows tax-exempt entities to treat the credit as a payment and get a refund.
Last updated: 12/29/2025
Official Summary
Congressional Research Service summary
<p><strong>Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023</strong></p><p>This bill establishes a new investment tax credit in the amount of 30% of the basis of any hydropower improvement property.</p><p>The bill defines <em>hydropower improvement property</em> as property that</p><ul><li>adds or improves fish passage at a qualified dam;</li><li>maintains or improves the quality of the water retained or released by a qualified dam;</li><li>promotes downstream sediment transport and habitat maintenance;</li><li>upgrades, repairs, or reconstructs a qualified dam to meet safety and security standards;</li><li>improves public uses of, and access to, public waterways impacted by a qualified dam;</li><li>removes an obsolete river obstruction; or</li><li>places into service an approved remote dam.</li></ul><p>Further, written approval for hydropower improvement property must be obtained from the Federal Energy Regulatory Commission or state or local officials prior to January 1, 2032.</p><p>The bill also allows an election to claim the investment tax credit for qualified progress expenses for some types of hydropower improvement property in advance of such property being placed into service. Any investment tax credit amount claimed for qualified progress expenses reduces the amount of the investment tax credit that may be claimed once the hydropower improvement property is placed into service. </p><p>The bill authorizes certain entities, including tax-exempt and governmental entities, to treat the investment tax credit for hydropower improvement property as a payment of tax and receive a refund of any overpayment (also known as elective pay). </p><p>Finally, the investment tax credit for hydropower improvement property may be transferred (i.e., sold).</p><p> </p>
Key Points
Main provisions of the bill
Provides a 30% investment tax credit for improving hydropower facilities to benefit the environment and public access
Allows tax-exempt entities like governments to claim the tax credit as a payment and get a refund
Requires written approval from federal or state officials before the credit can be claimed
How This Impacts Americans
Potential effects on citizens and communities
This bill would provide financial incentives for hydropower companies and other entities to invest in upgrades that benefit the environment and public access to waterways. It could lead to improved fish habitats, water quality, and recreational opportunities near dams and river obstructions. The tax credit could especially benefit state and local governments looking to improve their infrastructure.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
2994, 119th Congress (2025). "Voter Purge Protection Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-2994