NHA Applauds Biden Administration for Treating Hydropower Like Other Carbon Free Resources 

In a newly-issued Proposed Rule implementing the Inflation Reduction Act’s (IRA) Section 45Y and 48E tax credits (Tech Neutral Credits), numerous water power technologies (hydropower, pumped storage, marine, and hydrokinetic technologies) are classified as eligible for the Tech Neutral Credits, which are applied to carbon free energy generation. Achieving tax parity with other renewable resources will strengthen the water power industry and ensure it’s better prepared to support the transition to a 24/7 clean and reliable energy future.   

“Landmark legislation like the Inflation Reduction Act is game changer for American clean energy generation, and we’re grateful that the Biden Administration understands water power’s key role through issuing this Proposed Rule,” said NHA President and CEO, Malcolm Woolf. “We thank the Administration, as well as water power’s many champions in Congress who helped shape this bill with a vision for our industry.”

“In addition to tax support to encourage new carbon free electricity, there is still work to be done to preserve the existing hydropower and pumped storage industry,” added Woolf. “That includes passing the Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023, S.2994/H.R. 6653, which strengthens our industry further by incentivizing hydro facility upgrades. We thank the bipartisan list of sponsors of this legislation in the House and Senate, including Senators Cantwell (D-WA) and Murkowski (R-AK), as well as Reps. Adrian Smith (R-NE) and Suzan DelBene (D-WA).”