Modify Railroad Track Maintenance Credit

Summary#

This bill would change the federal tax credit for railroad track maintenance. It raises the per-mile credit amount from $3,500 to $6,100. It also adds an automatic inflation adjustment for taxable years beginning after 2025, using a cost-of-living formula and rounding any increase to the nearest $100. The bill updates the definition of qualified railroad track maintenance expenditures by replacing a date of “January 1, 2015” with “January 1, 2024.” The changes apply to expenditures paid or incurred in taxable years beginning after December 31, 2024.

What it means for you#

• Railroad owners or companies that claim the track maintenance credit would see a higher per-mile credit amount and, after 2025, annual increases tied to inflation.
• The change to the qualified-expenditures date affects which maintenance expenses meet the statute’s date-based rule.
• The bill does not itself describe changes to other taxes or rules.

Expenses#

No publicly available information in the bill text about federal budget costs, revenue effects, or estimated expenses.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.