Small Hydroelectric Power Generation Incentive Act of 1979

Small Hydroelectric Power Generation Incentive Act of 1979 - Amends the Internal Revenue Code to allow an additional investment tax credit for equipment used to produce electrical energy from hydroelectric power at existing small dams. Allows an income tax deduction equal to 50 percent of the cost electricity purchased from a small hydroelectric plant which is used by the taxpayer in his trade or business.