Congress·In Committee·H.R. 516

Railroads: Tax Credits for Track Repairs

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

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No legislative action in over 90 days.

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This bill, introduced in Congress, would increase the tax credit that smaller railroad companies receive for fixing and maintaining their tracks. The credit would rise from $3,500 to $6,100 for every mile of track they repair.
The policy is designed to help short-line railroads, which are smaller companies that often connect rural businesses and farms to the main national rail network. These companies face high costs to keep their tracks safe and up to date.
Starting in 2026, the tax credit amount would automatically increase each year to keep up with inflation. This ensures that as the price of steel, wood, and labor goes up, the tax break remains helpful for the railroads.
If this bill becomes law, the new higher credit would apply to money spent on track maintenance starting in 2025. This provides a larger financial incentive for companies to invest in infrastructure improvements sooner rather than later.