Bill > HB190

This bill, the Railroad Modernization Act of 2019, amends existing Alabama law to extend and enhance tax credits for qualified railroad rehabilitation expenditures. Specifically, it increases the maximum income tax credit allowed per mile of railroad track from $3,500 to $4,100 for tax years beginning after December 31, 2022, and introduces this higher credit amount for tax years beginning after December 31, 2027, through December 31, 2032. The bill also extends the sunset date for these tax credits from the end of tax year 2027 to the end of tax year 2032, meaning the program will now be in effect for an additional five years. Furthermore, it adjusts the aggregate amount of tax credits that can be reserved annually, with specific limits for different periods, and clarifies that these credits can be transferred and assigned by eligible taxpayers under certain conditions, including a transfer fee and a minimum transfer value of 85 percent of the credit's present value. The bill also specifies that the entire tax credit can be claimed in the year the rehabilitation expenditures are completed and placed into service, and any unused credit can be refunded.

Budget and Finance

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