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Applying The 80/20 Rule
Under current U.S. Treasury rules, if new components make up 80 percent or more of a turbine unit's value, the whole unit counts as newly built for tax purposes. That unlocks a production tax credit on the full output for 10 years, not just the incremental gain from the upgrade.
For plants running original, largely depreciated equipment, that threshold is often easy to clear. Combined with prevailing wage compliance and available bonus adders, qualifying projects can offset a substantial share of the cost of a new turbine or runner.
Where FishSafe™ Fits
Many plants are already headed toward a turbine runner replacement for reasons that have nothing to do with fish: aging equipment, falling efficiency, rising maintenance costs. That's exactly the kind of investment the tax credit is built around.
The choice of turbine or runner is where the additional upside sits. A FishSafe™ Restoration Hydro Turbine delivers the same modernization case and the same tax credit math as a conventional replacement, with fish passage compliance built into the investment you were already planning to make.
What This Could Mean for Your Plant
Credit value depends on unit size, generation profile, and sourcing choices, so there's no single number that applies across projects. Natel's team can walk through what this could look like for your plant as part of an early feasibility discussion.
This page is provided for general informational purposes only and does not constitute tax or legal advice. Owners should consult their own tax advisors or legal counsel regarding their specific circumstances.
