To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

This bill would boost the tax help that short line and regional railroads get to fix and maintain their tracks. It raises the annual cap on the railroad track maintenance tax credit from $3,500 per mile to $6,100 per mile, with the new amount adjusting for inflation starting in 2026. It also widens who can claim it by counting tracks owned or leased as of January 1, 2024 (instead of 2015). These changes apply to costs in tax years beginning after December 31, 2024.

Why this matters: more credit can mean more track repairs and upgrades, which can improve service and safety for the communities and businesses that rely on freight rail.

• Who is affected: short line and regional railroads, and the communities and shippers they serve.
• What changes: credit cap rises to $6,100 per mile and will adjust for inflation; eligibility expands to tracks owned or leased as of 1/1/2024.
• When: applies to expenses in tax years starting after 12/31/2024; inflation adjustments begin for tax years after 2025.