Bill > HB1058

This bill provides incentives and tax benefits to improve freight railroad infrastructure in Washington state. Specifically, the bill creates tax credits and exemptions for companies investing in short line railroad maintenance, new rail development, and railroad modernization. Eligible taxpayers can receive credits equal to 50% of their qualified expenditures, with a maximum annual credit of $500,000 per taxpayer and a total statewide cap of $8 million per year. The bill also provides sales and use tax exemptions for materials used in track maintenance by class II and class III railroads, port-owned rail facilities, and certain industrial rail sidings. Companies that recycle railroad materials can also earn credits based on the fair market value of donated infrastructure components. The legislature's goal is to promote economic development, reduce transportation impacts on roads and the environment, and support the modernization of railroad infrastructure to accommodate heavier railcars and improve safety. The bill includes provisions for tracking the effectiveness of these tax incentives, such as measuring track rehabilitation, bridge improvements, job creation, and increased rail car usage. Credits can be transferred to other taxpayers and carried forward for up to five years, with various provisions to ensure proper documentation and use of the tax benefits.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1058&Year=2025&Initiative=false