Klamath Basin Water Recovery and Economic Restoration Act of 2014 - Ratifies the Hydroelectric Settlement (Settlement), the Klamath River Basin Restoration Agreement for the Sustainability of Public and Trust Resources and Affected Communities (Restoration Agreement), and the Upper Klamath Basin Comprehensive Agreement (Upper Basin Agreement), except as modified by this Act.
Lists the Klamath Reclamation Project's authorized purposes. Prohibits water allocations for fish, wildlife, and National Wildlife Refuges purposes from adversely affecting water allocations for irrigation purposes, with the exception of allocations to refuges as provided for in the Restoration Agreement.
Provides for the disposition of net revenues from the leasing of refuge land within the Tule Lake National Wildlife Refuge and the Lower Klamath National Wildlife Refuge.
Authorizes the release of specified water rights claims against the United States by the Klamath Tribe, the Karuk Tribe, and the Yurok Tribe.
Amends the Klamath Basin Water Supply Enhancement Act of 2000 to authorize the Secretary of the Interior to conduct certain water, power, and ecosystem restoration programs that are consistent with the Agreements.
Establishes in the Treasury the Klamath Tribes Tribal Resource Fund.
Sets forth provisions concerning: (1) removing the Iron Gate Dam, the Copco No. 1 Dam, the Copco No. 2 Dam, and the J.C. Boyle Dam; (2) transferring the Keno Dam to the United States; (3) surrendering the East Side and West Side Developments associated with the Link River Dam; (4) relicensing PacifiCorp's Fall Creek Dam; and (5) transferring the title of the Iron Gate Hatchery from PacifiCorp to California.
Amends the Internal Revenue Code to permit tax-exempt mutual ditch or irrigation companies to earn income from dispositions of certain real property and stock interests without affecting their tax-exempt status. Requires that such income be used to pay the costs of operations, maintenance, and capital improvements of such a company.