To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
Summary
What This Bill Does
This bill modifies Internal Revenue Code section 45G, the railroad track maintenance credit. It raises the credit limitation from $3,500 to $6,100, adds an inflation adjustment for taxable years beginning after 2025 using calendar year 2024 as the base year and rounding increases to the nearest $100, updates the eligible acquisition cutoff from January 1, 2015 to January 1, 2024, and applies the amendments to expenditures paid or incurred in taxable years beginning after December 31, 2024. The main effect is a larger and indexed tax credit for short line and regional railroad track maintenance, with federal revenue cost in exchange for supporting rail infrastructure upkeep.
Who Benefits and How
Short line railroads benefit because the section 45G track maintenance credit rises from $3,500 to $6,100 per mile. Regional railroad operators benefit because the credit amount is indexed for inflation after 2025. Rail shippers benefit indirectly if more track maintenance improves reliability on smaller freight rail lines. Rural communities served by short line rail benefit if stronger maintenance incentives preserve rail access for local industries.
Who Bears the Burden and How
Federal taxpayers bear the cost of a larger and inflation-indexed railroad track maintenance tax credit. Treasury Department tax staff must administer the revised credit amount, rounding rule, inflation adjustment, and acquisition-date cutoff. IRS examiners must review claims under the new $6,100 amount and January 1, 2024 eligibility cutoff. Budget scorekeepers must account for reduced federal revenue from expanded section 45G claims.
Key Provisions
- Expands the section 45G railroad track maintenance credit amount from $3,500 to $6,100.
- Adds inflation indexing for taxable years beginning after 2025 with rounding to the nearest $100.
- Modifies the eligible railroad acquisition cutoff from January 1, 2015 to January 1, 2024.
- Provides that the revised credit applies to expenditures paid or incurred after December 31, 2024.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Raises the railroad track maintenance tax credit from $3,500 to $6,100 per mile, indexes that amount for inflation after 2025, updates the acquisition-date cutoff to January 1, 2024, and applies the changes to expenditures after December 31, 2024.
Key Policy Areas
Tax, Railroads, Infrastructure
Primary Purpose
Raises the railroad track maintenance tax credit from $3,500 to $6,100 per mile, indexes that amount for inflation after 2025, updates the acquisition-date cutoff to January 1, 2024, and applies the changes to expenditures after December 31, 2024.
Policy Domains
Resolution provisions
Identified Gains
- Short line railroads
- Regional railroad operators
- Rail shippers
- Rural communities served by short line rail
Identified Costs
- Federal taxpayers
- Treasury Department tax staff
- IRS examiners
- Budget scorekeepers
Sponsors
Legislative Progress
In CommitteeMr. Kelly of Pennsylvania (for himself and Mr. Thompson of …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Rail shippers, Regional railroad operators, Short line railroads
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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