summary
Introduced
04/16/2025
04/16/2025
In Committee
11/12/2025
11/12/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2025-2026 Regular Session
Bill Summary
This bill creates an income and franchise tax credit for railroads that make rail infrastructure and railroad maintenance expenditures. Under the bill, a claimant that is classified by the U.S. Surface Transportation Board as a class II or class III railroad may claim a rail infrastructure modernization credit that is equal to the sum of the following amounts: 1. Fifty percent of the qualified short line railroad maintenance expenditures made by the railroad. This portion of the credit is limited to an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the railroad. The bill defines Xqualified short line railroad maintenance expendituresY as gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state. 2. Fifty percent of the railroad[s qualified new rail infrastructure expenditures. This portion of the credit is limited to $2,000,000 per project. The bill defines Xqualified new rail infrastructure expendituresY as expenditures for rail LRB-1305/1 KP:cdc 2025 - 2026 Legislature SENATE BILL 213 infrastructure and improvements in this state placed in service after December 31, 2024. A claimant that owns or leases a rail siding, industrial spur, or industry track may claim the portion of the credit described above for the claimant[s qualified new rail infrastructure expenditures. Before claiming a credit under the bill, a claimant must first apply to and receive approval from the Department of Revenue to claim the credit. DOR may approve up to $10,000,000 in total credits for qualified new rail infrastructure expenditures for each tax year, and DOR must approve applications for credits on a first-come, first-served basis. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill creates a tax credit program for rail infrastructure modernization in Wisconsin that provides financial incentives for class II and class III railroads and rail infrastructure owners to invest in railroad maintenance and improvements. Specifically, the bill allows eligible claimants (railroad companies or rail infrastructure owners) to claim two types of tax credits: first, a credit equal to 50% of qualified short line railroad maintenance expenditures, which is limited to $5,000 multiplied by the number of miles of railroad track owned or leased; and second, a credit equal to 50% of qualified new rail infrastructure expenditures, which is limited to $2,000,000 per project. To claim these credits, applicants must first apply to and receive approval from the Department of Revenue, with a total annual cap of $10,000,000 in credits for new rail infrastructure expenditures. The credits can be applied against income and franchise taxes, can be carried forward for up to five years if not fully used, and can even be sold or transferred to other taxpayers. The bill is designed to encourage railroad infrastructure investment by providing a financial incentive for maintenance and improvement projects placed in service after December 31, 2024, and before January 1, 2035.
Committee Categories
Budget and Finance
Sponsors (15)
Mary Felzkowski (R)*,
Dan Feyen (R)*,
Romaine Quinn (R)*,
Patrick Testin (R)*,
Cory Tomczyk (R)*,
David Armstrong (R),
Robert Donovan (R),
Benjamin Franklin (R),
Rick Gundrum (R),
Paul Melotik (R),
Jeff Mursau (R),
Todd Novak (R),
Treig Pronschinske (R),
Rob Swearingen (R),
Travis Tranel (R),
Last Action
Senator Spreitzer added as a coauthor (on 01/21/2026)
Official Document
bill text
bill summary
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