Short Line Railroad Track Maintenance Tax Credit (Section 45G)

Overview

Made permanent Dec 2020 (Consolidated Appropriations Act). Credit of 40 cents per $1 spent on qualified track maintenance, capped at $3,500/mile; eligibility keyed to track owned/leased as of Jan 1, 2015. Has driven over $8B in private investment since 2005. Modernization bills pending, not enacted: H.R. 516 and S. 1532 would raise the cap to $6,100/mile and update the eligibility date to Jan 1, 2024. Not deadline-driven (annual tax credit), no cycle entered.

Uses

• Track Rehabilitation

Funding

Credit

40% of qualified spend

Per-mile cap

$3,500/mile

Eligibility

• Class Ii
• Class Iii
• Shipper

Terms

• Mechanism: Tax Credit
• Authorized under 26 U.S.C. §45G
• SAM.gov registration: required

How to Apply