Bill > S2758

This bill, known as the Freight RAILCAR Act of 2025, establishes a tax credit to encourage the replacement and modernization of outdated freight railcars. Specifically, the bill provides a 10% tax credit for freight railcar fleet modernization expenses, with a limit of 1,000 qualified railcars per taxpayer per year. To qualify, railcars must be newly built or modernized after the bill's enactment, meet significant improvement standards (such as increasing capacity by at least 8% or meeting specific safety requirements), and be built in a qualified facility. The bill defines a qualified replacement railcar as one that replaces two existing railcars that are scrapped and removed from service. The tax credit applies to expenses related to acquiring or modernizing railcars, with restrictions to prevent double-dipping of credits and special rules for sales and leasebacks. The credit will be available for three years after the bill's enactment, with the first effective date being January 1, 2025. Additionally, the bill requires the Treasury Secretary to submit a report to Congressional committees within three years, detailing the credit's usage, including the number of times it was claimed, railcars scrapped, and new railcars contracted or built as a result of the legislation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2758/all-info