A bill 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 Section 45G of the Internal Revenue Code. Its primary aim is to enhance financial incentives for maintaining railroad infrastructure by increasing the per-mile credit amount. Specifically, the legislation raises the credit for qualified railroad track maintenance expenditures from $3,500 to $6,100 per mile. Furthermore, it introduces an inflation adjustment mechanism for this new credit amount, which will begin for taxable years starting after 2025, indexed to a 2024 baseline. The bill also updates the eligibility criteria for these expenditures, changing the reference date for qualified maintenance 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.