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

This bill proposes significant changes to the existing railroad track maintenance credit under the Internal Revenue Code of 1986. Its primary aim is to enhance financial incentives for maintaining railroad infrastructure by increasing the maximum credit available to eligible taxpayers. Specifically, the legislation raises the credit amount from $3,500 to $6,100 per mile of track. Furthermore, it introduces an inflation adjustment mechanism for this increased credit, which will apply to taxable years beginning after 2025, using a cost-of-living index from calendar year 2024. The bill also updates the definition of qualified railroad track maintenance expenditures by changing the reference date from January 1, 2015, to January 1, 2024. These amendments are slated to take effect for expenditures paid or incurred in taxable years beginning after December 31, 2024, providing a more robust and responsive credit for railroad maintenance.