Freight RAILCAR Act of 2025

Creates a 10% federal tax credit for qualifying freight railcar modernization and replacement costs to lower the up-front cost of updating freight railcars. The credit is capped at 1,000 qualified railcars per taxpayer per year, reduces the tax basis of the railcar by the amount of the credit, disallows double benefits, excludes entities owned or controlled by state-owned enterprises, and applies to property placed in service and amounts paid after December 31, 2024.

Requires the Treasury to deliver a report to congressional tax committees within three years of enactment counting credit claims and tracking railcars scrapped, contracted, and built. The credit terminates three years after enactment.