The Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2025 proposes amendments to the Internal Revenue Code of 1986, introducing a new tax credit under Section 48F to incentivize significant upgrades and enhancements at existing hydroelectric facilities. This initiative aims to boost clean energy generation, strengthen the resilience and reliability of the national electric grid, and improve the ecological health of rivers and their associated wildlife habitats. The core provision establishes a 30 percent tax credit for the basis of "hydropower improvement property" placed in service. This property encompasses a wide range of eligible projects, including those that add or improve fish passage , maintain or enhance water quality , and promote downstream sediment transport . It also covers upgrades for dam safety and security standards , improvements to public access and uses of waterways, and the removal of obsolete river obstructions . Furthermore, the credit applies to placing into service an "approved remote dam" that meets specific criteria, such as servicing non-interconnected communities and having a maximum net output of 20 megawatts. To qualify, taxpayers must receive written approval for the property from the Federal Energy Regulatory Commission or appropriate state or local officials prior to January 1, 2035. A significant feature is that the new credit is eligible for both elective payment (direct pay) and transferability , offering greater financial flexibility for project developers, with the amendments applying to property placed in service after December 31, 2025.