1. Short title This Act may be cited as the Maintaining and Enhancing Hydroelectricity and River Restoration Act of 2023 . 2. Credit for maintaining and enhancing hydroelectric facilities (a) In general Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section: 48F. Credit for maintaining and enhancing hydroelectric facilities (a) In general For purposes of section 46, the credit for maintaining and enhancing hydroelectric facilities for any taxable year is an amount equal to 30 percent of the basis of any hydropower improvement property placed in service during such taxable year. (b) Certain progress expenditure rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a). (c) Hydropower improvement property In this section, the term hydropower improvement property means property— (1) which— (A) adds or improves fish passage at a qualified dam, (B) maintains or improves the quality of the water retained or released by a qualified dam, (C) promotes downstream sediment transport processes and habitat maintenance with respect to a qualified dam, (D) upgrades, repairs, or reconstructs a qualified dam to meet Federal dam safety and security standards, (E) improves the public uses of, and access to, public waterways impacted by a qualified dam in a manner consistent with a license issued by the Federal Energy Regulatory Commission or a settlement agreement related to such a license, (F) removes an obsolete river obstruction, or (G) places into service an approved remote dam, and (2) for which, prior to January 1, 2032, the taxpayer receives written approval with respect to any property described in paragraph (1) from the Federal Energy Regulatory Commission or State or local officials, as appropriate. (d) Other definitions In this section— (1)