HR 516
To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
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Bill overview
This bill changes the railroad track maintenance credit, which is designed to encourage investment in rail infrastructure. It increases the maximum amount of the credit that can be claimed each year from $3,500 to $6,100. The bill also expands the timeframe for qualifying expenses, allowing businesses to claim the credit for expenses incurred as of January 1, 2024, rather than January 1, 2015.
Key provisions
- Increases the annual credit limit from $3,500 to $6,100.
- Expands the eligible date for qualifying expenses to January 1, 2024.
- Includes an inflation adjustment to the credit limit starting in 2026.
- Modifies Section 45G(b)(1)(A) of the Internal Revenue Code.
- Modifies Section 45G(d) of the Internal Revenue Code.
Who is affected
- Railroad companies
- Short line railroads
- Taxpayers
- Transportation industry
- Small businesses
Notable changes
- Increases the maximum credit amount.
- Expands the eligible date for qualifying expenses.
- Introduces an inflation adjustment to the credit limit.
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119th CONGRESS — 1st Session
H. R. 516
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.
$3,500and inserting
$6,100.
Section 45G of such Code is amended by adding at the end the following new subsection:
In the case of a taxable year beginning after 2025, the $6,100 amount in subsection (b)(1)(A) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024
for calendar year 2016
in subparagraph (A)(ii) thereof.
Any increase determined under paragraph (1) which is not a multiple of $100 shall be rounded to the nearest multiple of $100.
Section 45G(d) of the Internal Revenue Code of 1986 is amended by striking January 1, 2015
and inserting January 1, 2024
.
The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2024.