This bill boosts the tax credit that helps pay for short line railroad track repairs. The yearly cap goes up from $3,500 to $6,100 per mile of track, with that $6,100 adjusting for inflation starting after 2025 . It also widens who can claim the credit by covering maintenance on tracks that were owned or leased as of January 1, 2024 (the old cutoff was 2015) .

These changes apply to money spent in tax years starting after December 31, 2024 .

• Who is affected: Owners and lessees of short line railroad tracks, including those with tracks owned or leased as of January 1, 2024 .
• What changes: Higher per‑mile credit cap ($6,100, inflation‑adjusted after 2025) and expanded eligibility to newer track ownership dates .
• When it starts: For expenditures in tax years beginning after December 31, 2024 .