A proposed 30% investment tax credit could help preserve and improve the nation’s existing hydroelectric plants so they can continue to provide reliable electricity for growing energy needs. According to the authors of the newly released report, this financial support is essential for maintaining these long-lasting assets and ensuring they meet modern safety and environmental standards.
The report states that “Congress should pass legislation that provides greater tax support to preserve and enhance existing hydropower facilities, including PSH, so these “forever assets” can continue to meet growing energy demand in their communities.” It further explains that this “bipartisan, bicameral bill extends a 30 percent investment tax credit (ITC) to incentivize investments in dam safety and ecosystem improvements at existing hydropower facilities.”
In simple terms, many of the country’s water-based power plants are decades old and need expensive repairs to stay safe and efficient. By giving these facilities a significant tax break on the money they spend on upgrades, the government makes it much more affordable for operators to keep them running instead of shutting them down. This ensures that a steady source of clean energy remains available to power homes and businesses as electricity demand rises.
The report “Winning the AI Race: Tapping into Pumped Storage Hydropower” was published by the National Hydropower Association in March 2026. Produced by the association’s policy experts in Washington, D.C., the document provides a strategic roadmap for leveraging long-duration energy storage to meet the surging power demands of data centers and advanced manufacturing.
