BillTrack50 logo
Free Signup Login
Bill

Bill > AB219

WI AB219

A tax credit for rail infrastructure modernization. (FE)

summary

Introduced
04/23/2025
In Committee
04/23/2025
Crossed Over
Passed
Dead

Introduced Session

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 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 for rail infrastructure modernization that applies to class II and class III railroads operating in Wisconsin from 2025 to 2035. The credit consists of two main components: first, a 50% credit for qualified short line railroad maintenance expenditures, which is limited to $5,000 multiplied by the number of miles of railroad track owned or leased by the railroad; and second, a 50% credit for qualified new rail infrastructure expenditures, which is limited to $2,000,000 per project. Qualified expenditures include infrastructure improvements like track rehabilitation, new track construction, right-of-way acquisition, engineering, and loading dock improvements. To claim the credit, railroads must first apply to and receive approval from the Department of Revenue, which will approve up to $10,000,000 in total credits for new rail infrastructure expenditures each tax year on a first-come, first-served basis. The credit can be carried forward for up to 5 years if not fully used in the initial year, and it can also be transferred to other taxpayers subject to certain conditions. Partnerships, tax-option corporations, and limited liability companies cannot directly claim the credit but can compute and pass it through to their partners, shareholders, or members proportionally.

Committee Categories

Transportation and Infrastructure

Sponsors (14)

Last Action

Fiscal estimate received (on 05/06/2025)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...