To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

10/5/2024, 8:05 AM

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 I or II 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.

Bill 118 hr 9522, also known as the Railroad Track Maintenance Credit Modification Act, aims to make changes to the Internal Revenue Code of 1986 specifically related to the railroad track maintenance credit. This credit is designed to incentivize railroad companies to invest in the maintenance and improvement of their tracks.

The proposed modifications in this bill would likely impact how railroad companies can claim this tax credit. The specifics of these changes are not explicitly outlined in the bill itself, but it is clear that the intention is to adjust the current regulations surrounding the credit.

The bill is currently being reviewed by the US Congress and has not yet been passed into law. It is important to note that the information provided in this summary is based on the text of the bill itself and may be subject to further amendments or revisions as it progresses through the legislative process. Overall, the Railroad Track Maintenance Credit Modification Act seeks to update and refine the existing tax credit system for railroad track maintenance in order to better support and encourage investment in this critical infrastructure.
Congress
118
Number
HR - 9522
Introduced on
2024-09-10
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

9/10/2024
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

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 I or II 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.

Bill 118 hr 9522, also known as the Railroad Track Maintenance Credit Modification Act, aims to make changes to the Internal Revenue Code of 1986 specifically related to the railroad track maintenance credit. This credit is designed to incentivize railroad companies to invest in the maintenance and improvement of their tracks.

The proposed modifications in this bill would likely impact how railroad companies can claim this tax credit. The specifics of these changes are not explicitly outlined in the bill itself, but it is clear that the intention is to adjust the current regulations surrounding the credit.

The bill is currently being reviewed by the US Congress and has not yet been passed into law. It is important to note that the information provided in this summary is based on the text of the bill itself and may be subject to further amendments or revisions as it progresses through the legislative process. Overall, the Railroad Track Maintenance Credit Modification Act seeks to update and refine the existing tax credit system for railroad track maintenance in order to better support and encourage investment in this critical infrastructure.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

Comments

APPROVED
EW
Edith Walters
@pretzel_dill_seed_scallion22169
I don't understand why they are changing this bill, it seems like a waste of time and money. I rely on the railroad for transportation and this could really impact me. Why are they making these changes?
APPROVED
NH
Navy Harding
@borlotti_bean_patty_pan_hardtack92550
This bill is a joke. It's just another way for the government to waste money on something unnecessary.

Recent Activity

Latest Summary11/8/2024

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 cre...

Latest Action9/10/2024
Referred to the House Committee on Ways and Means.