The National Hydropower Association (NHA) has commended the Biden Administration for its newly proposed rule that would treat hydropower the same as solar, wind, and other emission-free energy sources.
This proposed rule, part of the implementation of the Inflation Reduction Act’s (IRA) Sections 45Y and 48E tax credits (Tech Neutral Credits), designates various water power technologies – including hydropower, pumped storage, marine, and hydrokinetic technologies – as eligible for these credits. By doing so, the rule aims to ensure that hydropower receives equal tax incentives as other renewable energy sources, bolstering the industry and enhancing its capacity to contribute to a 24/7 clean and reliable energy grid.
“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.”
Woolf also emphasized the need for continued support for the existing hydropower and pumped storage sectors. He highlighted the importance of passing the Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023 (S.2994/H.R. 6653), which aims to further strengthen the industry by incentivizing upgrades to hydro facilities. Woolf expressed gratitude to the bipartisan sponsors of this legislation, including Senators Maria Cantwell (D-WA) and Lisa Murkowski (R-AK), as well as Representatives Adrian Smith (R-NE) and Suzan DelBene (D-WA).
The NHA believes that achieving tax parity with other renewable resources will not only fortify the water power industry but also ensure it is better positioned to support the nation’s transition to a sustainable energy future.
