Bills · HR 516
IN COMMITTEE· 119TH CONGRESS
House BillHR 516Taxation
To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
INTRO JAN 16· LAST ACTION JAN 16
READING
2MIN
COSPONSORS
164BIPARTISAN
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LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThe most directly affected parties are railroad companies, particularly smaller, regional, and short-line railroads. These companies often rely on tax incentives to help fund the significant costs associated with maintaining and improving their rail infrastructure. With an increased and inflation-adjusted tax credit, they would see a direct financial benefit, which could help reduce their operating costs or free up funds for other investments.
Indirectly, businesses and communities that depend on freight rail for transporting goods could be affected. Better-maintained tracks can lead to safer and more reliable train service, potentially reducing shipping delays and improving overall supply chain efficiency. Workers in the rail maintenance industry could also see continued demand for their services due to the increased incentive for track upkeep.
KEY PROVISIONS
4AI-extractedPROVISION 01
Increases the tax credit for qualified railroad track maintenance from $3,500 to $6,100 per mile.
This provides a greater financial incentive for railroads to invest in essential track upkeep and modernization.
PROVISION 02
Adds a mechanism to adjust the $6,100 credit amount for inflation annually, starting with taxable years after 2025.
This ensures the credit's value is not eroded by rising costs over time, maintaining its effectiveness as an incentive.
PROVISION 03
Extends the period during which railroad track maintenance expenditures can qualify for the credit from an implied December 31, 2014, to December 31, 2023.
This allows a broader range of recent maintenance costs to be covered by the credit, providing more comprehensive financial relief to railroads.
PROVISION 04
Sets the effective date for these changes to apply to expenditures paid or incurred in tax years beginning after December 31, 2024.
This clarifies when the new credit amount, inflation adjustment, and extended eligibility period become active.
SPONSORSHIP
1 + 164
R· Pennsylvania
YRS IN OFFICE
15
BILLS LED
34
COSPONSOR BREAKDOWNBIPARTISAN · 79%
DEM 65 REP 99 IND 0
ACTION TIMELINE
2 EVENTSJAN 16
Introduced in House
JAN 16
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 516
Congress119th
StatusIn Committee
IntroducedJan 16, 2025
Last actionJan 16, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 16, 2025
House BillHR 516Taxation
To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
INTRODUCED JAN 16, 2025· LAST ACTION JAN 16, 2025
PASSAGE CHANCES
—%
READING
2 min
COSPONSORS
164
COMPLEXITY
Moderate
