S 1532119th CongressIn Committee

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

Introduced: Apr 30, 2025

Sponsor: Sen. Crapo, Mike [R-ID] (R-Idaho)

Economy & TaxesInfrastructure

Standard Summary

Comprehensive overview in 1-2 paragraphs

This legislation amends the Internal Revenue Code to increase the railroad track maintenance tax credit from $3,500 to $6,100 per mile, introduces inflation adjustments starting in 2026, and extends the eligibility period for qualified expenditures to incentivize critical railroad infrastructure maintenance through enhanced tax benefits.

Key Points

1The credit amount per mile of track maintained is significantly raised from $3,500 to $6,100 to encourage greater private investment in rail infrastructure.
2A new inflation adjustment mechanism applies to tax years after 2025 using 2024 as the base year to preserve the credit's real value over time.
3The deadline for qualified expenditures is extended from January 1, 2015 to January 1, 2024 allowing more recent maintenance costs to qualify for the credit.

Impact Areas

Railroad companies and operators claiming the tax creditFederal tax revenue due to expanded credit provisionsNational freight and passenger rail infrastructure safety and reliability

Generated by Legislative Analysis AI v3.2 on Oct 31, 2025