HR 516119th CongressIntroduced

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

Introduced: Oct 29, 2025

Economy & TaxesInfrastructure

Standard Summary

Comprehensive overview in 1-2 paragraphs

H.R. 516 modifies the railroad track maintenance tax credit by increasing the per-mile amount from $3,500 to $6,100, implementing annual inflation adjustments starting in 2026, and extending the eligibility period for qualified track maintenance expenditures through 2024, with all changes effective for tax years beginning after December 31, 2024.

Key Points

1The tax credit amount per mile of railroad track is raised from $3,500 to $6,100 to incentivize infrastructure maintenance investments by rail operators.
2An annual inflation adjustment mechanism is introduced starting in 2026 using the cost-of-living adjustment formula to preserve the credit's real value over time.
3The qualification period for eligible track maintenance expenditures is extended by changing the cutoff date from January 1, 2015 to January 1, 2024 in the tax code.

Impact Areas

Railroad companies and operators performing track maintenanceFederal tax revenue through reduced corporate tax collectionsNational freight and passenger rail infrastructure condition

Generated by legislative-analyst-v3 on Nov 6, 2025