Bill > SB5063

This bill provides incentives to improve freight railroad infrastructure in Washington State by creating several tax credits and exemptions aimed at supporting short line and smaller railroad operations. The bill establishes tax credits for railroad maintenance, new rail development, and modernization expenditures, which can be claimed against various state taxes and even transferred to other taxpayers. Specifically, eligible taxpayers can receive a 50% credit for qualified expenditures, with an annual cap 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 rail sidings. Additionally, the bill allows companies that recycle railroad materials to receive tax credits based on the fair market value of donated infrastructure components. The legislature's underlying policy goals include promoting economic development, reducing transportation impacts on roads and the environment, and supporting infrastructure improvements that can accommodate heavier railcars, improve track conditions, and enhance safety. The bill includes provisions for the Joint Legislative Audit and Review Committee to evaluate the effectiveness of these tax preferences by tracking various metrics such as track miles rehabilitated, economic activity, and job creation.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5063&Year=2025&Initiative=false