Plain English
GovGreed Synthesis ·
This bill increases the annual limit on the tax credit for qualified railroad track maintenance expenses (also referred to as the short line railroad tax credit) and expands eligibility for claiming the credit. Under current law, the tax credit is limited each tax year to $3,500 multiplied by the sum of the number of miles of railroad track owned or leased by the taxpayer (miles owned or leased) and the number of railroad track miles assigned to the taxpayer by a Class II or III railroad (miles assigned). This bill increases the annual limit to $6,100 multiplied by the sum of miles owned or leased and miles assigned. The $6,100 amount used in the calculation of the tax credit limit is adjusted for inflation for tax years beginning after 2025. The bill also expands eligibility for the tax credit to include gross expenses for maintaining railroad tracks owned or leased as of January 1, 2024. Under current law, the tax credit is limited to gross expenses for maintaining railroad tracks owned or leased as of January 1, 2015.
Market Impact Map
Action Timeline
2025-01-16
Referred to the House Committee on Ways and Means.
2025-01-16
Introduced in House
2025-01-16
Introduced in House
Full Bill Text
119 HR 516 IH: To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit. U.S. House of Representatives 2025-01-16 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 516 IN THE HOUSE OF REPRESENTATIVES January 16, 2025 Mr. Kelly of Pennsylvania (for himself and Mr. Thompson of California ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit. 1. Modification of railroad track maintenance credit (a) Increase in credit amount (1) In general Section 45G(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking $3,500 and inserting $6,100 . (2) Inflation adjustment Section 45G of such Code is amended by adding at the end the following new subsection: (f) Inflation adjustment (1) In general In the case of a taxable year beginning after 2025, the $6,100 amount in subsection (b)(1)(A) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding Any increase determined under paragraph (1) which is not a multiple of $100 shall be rounded to the nearest multiple of $100. . (b) Qualified railroad track maintenance expenditures Section 45G(d) of the Internal Revenue Code of 1986 is amended by striking January 1, 2015 and inserting January 1, 2024 . (c) Effective date The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2024.
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