Tax Credit for Modernizing and Replacing Inefficient Freight Railcars
This law introduces a new tax credit for rail companies to encourage them to replace outdated and inefficient freight railcars with new or modernized ones. Citizens may indirectly benefit from improved rail safety and potentially a more efficient supply chain, which affects the cost of goods. The program aims to stimulate economic activity through transportation infrastructure investment.
Key points
Rail companies can claim a 10% tax credit on expenses related to modernizing or purchasing new, more efficient freight railcars.
To qualify, new railcars must replace two older, scrapped railcars and demonstrate significant improvements (e.g., at least 8% better capacity or fuel efficiency).
The credit is capped at 2,000 railcars per taxpayer annually and is only available for three years after the law is enacted.
The credit is unavailable to entities controlled by state-owned enterprises that are ineligible for certain federal contracts.
Expired
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