### Question
How is the term environmental enhancements of hydroelectric generating facilities defined?


### Answer
The term **environmental enhancements of hydroelectric generating facilities** is defined in *26 U.S.C. § 142* as the following:

> property—


(A) the use of which is related to a federally licensed hydroelectric generating facility owned and operated by a governmental unit, and


(B) which—


(i) protects or promotes fisheries or other wildlife resources, including any fish by-pass facility, fish hatchery, or fisheries enhancement facility, or


(ii) is a recreational facility or other improvement required by the terms and conditions of any Federal licensing permit for the operation of such generating facility

#### Citation:
  - *26 U.S.C. § 142*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIRE- > Subpart A-Private Activity Bonds**

